Centrica PLC jumped over 8% after the British Gas owner graced investors with another buyback and hiked its dividend in expectation-beating full-year results on Thursday.
Though figures sank as Centrica reeled from benefits of a surge in energy prices in recent years, a one-third drop in pre-tax earnings to £2.3 billion was shallower than expected.
Pleasing figures, which the company said reflected “normalising” conditions, were coupled with news of a new £500 million buyback to take its current programme to £2.0 billion.
A 4.5p per share full-year dividend was also declared, against 4.0p in 2023, as Centrica laid out plans to hike the figure to 5.5p in 2025.
“The buyback sharply raises liquidity in the shares to year-end, and neither we nor we believe investors expected it,” UBS analysts said in response.
Earnings were “well-guided, dependable and very under control,” the bank added.
Shares were up 8.2% at 147.05p.