Centrcia’s earnings should get a decent bump up from British Energy’s decision to extend the lives of the Hartlepool and Heysham 2 nuclear plants for another two years, according to analysts at Barclays.
EDF runs the plants, with British Gas owner Centrica having a 20% stake.
Barclays believes plant life extensions are part of the narrative surrounding the UK’s growing use of nuclear power and this announcement continues to underpin Centrica earnings.
Analysts at the bank calculate the extension can add 2-2.5p a year to Centrica’s earnings and 5p to its net present value, and it reiterated their 'overweight' view on the shares with 160p target price.
Shares eased 0.4% to 105.8p.