British Gas owner Centrica PLC (LSE:CNA) will shed light on its performance after a year of excessive energy price hikes sparked by war in Ukraine, when it reports full year results.
Centrica has guided to earnings per share coming in above 30p in a January trading update, adding net cash should be over £1bn, up from £680mln last year.
It reported a "strong operational performance", with infrastructure asset availability and volumes that "remained good".
Recently, analysts at RBC Capital Markets said saw plenty of upside potential in the shares, saying current market prices "provide a tailwind for Centrica and remain materially above historical averages", though softening commodity prices are likely hit later in the year and in 2024.
Hargreaves Lansdown analyst Aarin Chiekrie said: “The group is in a much better place than it was just a few years ago, and that’s reflected in a healthier looking balance sheet.
“But there’s still a lot of progress to be made,” he added, suggesting the full-year results could provide more clarity to investors that Centrica is continuing in the right direction, after it doubled profits in its previous year.
However, Centrica has been caught up in controversy over allegations it was forcing vulnerable homeowners to install pre-payment meters to ensure customers had to pay bills.
It subsequently launched an investigation into its third-party installers, adding it was creating a £10mln fund to aid families struggling to pay bills amid higher costs.
Chiekrie added this could impact British Gas’ retail division in particular, though this will not be reflected in these results.