Shares in Centrica PLC (LSE:CNA) fell 7.6% as the British Gas owner reaffirmed its full-year 2025 profit and dividend guidance but warned of challenges in its energy trading business.
British Gas Residential Energy has been impacted by warmer than usual weather in the second quarter, but is expected to remain within its medium-term sustainable profit range for the year.
The company also noted that its Centrica Energy division is likely to be at the lower end of its profit range due to challenging conditions in gas and power trading, though its LNG and RETO businesses continue to perform well.
Centrica Energy Storage+ is now expected to post an adjusted operating loss at the higher end of the previously guided range of £50 million to £100 million.
The company is in constructive discussions with the UK Government to secure regulatory support for a £2 billion investment to expand the Rough storage facility, including plans to convert it into a hydrogen-ready site.
Despite all this, Centrica still reiterated its full-year adjusted operating profit guidance and its intention to increase the full-year 2025 dividend to 5.5p a share.