Dan Coatsworth, head of markets at AJ Bell, said: “Only the tiniest of violins are likely to be played after Centrica revealed that earnings in its British Gas operations will be towards the lower end of guidance.
“A casual observer might see Centrica as an obvious beneficiary of rising energy prices but a combination of warmer weather, commodity price volatility and rising bad debts means the retail-facing part of the group is finding life difficult.
“The infrastructure division, which benefits directly from buoyant energy markets, is expected to do better than previously guided.
“The company is bolstering its footprint through the acquisition of the Severn natural gas power station – though this will hit profit modestly in the short term as it is integrated into the business.
“This acquisition, plus the significant investment planned for 2026, means share buybacks remain off the table for now, and after a strong start to the year the shares are looking distinctly underpowered today.”
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