British Gas owner Centrica PLC (LSE:CNA) reported record annual profits of £3.3bn, driven by soaring wholesale gas prices, and said it plans a further £300mln share buy-back.
The FTSE-100 listed firm saw adjusted operating profits more than triple to £3.31bn in 2022 from £948mln the year before while adjusted earnings per share (EPS) jumped to 34.9p from 4.1p.
The company, which restored dividends in the first half, declared a full-year payout of 3p per share.
Centrica reported strong gas production and electricity generation against a backdrop of higher commodity prices. But retail profits were lower, including a small loss in British Gas Services & Solutions, reflecting weak commercial performance and investment in customer service, support and pricing.
Group free cash flow from continuing operations of £2.5bn (2021: £1.2bn) included some big swings in working capital, with £1.1bn inflow in British Gas Energy reflecting the short-term acceleration of cash flows from government support schemes and a £1.6bn build in EM&T and Centrica Storage.
Looking ahead, the company said strong capabilities and positions in Retail and EM&T leave it well-placed for growth as core markets transition to net zero and it plans to invest around £400mln into in-flight solar, battery and gas-peaking generation projects.
It is also aiming to progress plans to repurpose Rough and Morecambe as net zero assets.
More detail on longer-term investment plans and expected returns will be announced alongside interim results in July 2023, Centrica added.