British Gas owner Centrica PLC (LSE:CNA) has unveiled a new £500 million buyback and upped its dividend after growing net cash last year despite flagging profit.
An additional £500 million worth of shares would be repurchased to take its current buyback programme to £2 billion, the energy firm said in results on Thursday.
A full-year dividend of 4.5p per share was declared in the meantime, against 4.0p in 2023, as net cash increased by 4.2% to £2.9 billion.
Profit was lower for the year though, which Centrica said reflected a “more normalised backdrop” after it had benefited from heightened energy prices in recent years.
Operating profit slipped 43.6% to £1.6 billion on an adjusted basis, as pre-tax earnings dipped just over a third to £2.3 billion.
Guidance was held on the back of the figures, including for plans to increase its dividend to 5.5p per share in 2025.
“Centrica has been transformed in recent years, and most of our businesses delivered against our medium-term expectations two years ahead of schedule,” chief executive Chris O’Shea said.
“We now have greater resilience and financial flexibility supporting the capital returns, dividend increases and new investments.
“Our confidence in the future is as strong as it's been for a long time.”
Shares surged 8% to 146.8p on Thursday.