Dan Coatsworth, head of markets at AJ Bell, said: “If there was any suspicion Centrica’s recent run of success was more down to the market backdrop than any master strategy then doubts will only have been solidified by its recent results.
“While the drop in earnings wasn’t quite as large as expected, Centrica provided disappointing news on share buybacks which has led the share price to power down in response.
“Centrica, with its healthy exposure to the wholesale market alongside its ownership of the British Gas retail division, benefited from the surge in energy markets in recent years. The momentum has now been lost.
“Centrica is hitting pause on buybacks so it can allocate spending to growth projects including the Sizewell C nuclear power.
“Executing on these ventures will be challenging and will put a dent in the company’s healthy cash position but could deliver more stable earnings if they ultimately prove successful.
“Having been fuelled by a favourable environment since 2022, Centrica must now prove its mettle without a helping hand from rising prices.”
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