Centrica PLC (LSE:CNA) has raised its profits forecast again as it confirmed income and cash flows have surged higher due to inflated gas and electricity prices.
In a short trading update, the British Gas owner said that since its previous trading update on 10 November 2022, it had “continued to deliver strong operational performance from its balanced portfolio”.
“Infrastructure asset availability and volumes have remained good, and we delivered incrementally strong optimisation performance,“ it added.
“As a result, we currently expect to report 2022 full-year adjusted earnings per share of above 30p.”
In November, the gas group said it expected earnings to be at the top end of forecasts of 15.1p to 26p, with today's update implying at least a 15% uptick.
Centrica added that cash generation has also been good with 2022 closing net cash to be above £1bn.
Two years ago, Centrica closed 2020 with net debt of nearly £3bn and posted earnings per share of 0.7p.
Gas prices have surged since Russia’s invasion of Ukraine, prompting the UK government to impose a cap on average household bills at around £2,500.
From the start of this year, Centrica and other power generators also have to pay a windfall tax on UK profits after chancellor Jeremy Hunt imposed a levy of 45% on wholesale electricity sold at more than £75 per Mwh.
Currently, the spot price for electricity is £162 per Mwh, having been over £600 per Mwh in October.