Centrica PLC (LSE:CNA) led the Footsie list of losers in early trading, with the shares dropping 8% on the surprise news that the British Gas owner is pausing its share buyback programme to redirect capital towards major infrastructure projects, including Sizewell C.
Chief executive Chris O’Shea said: “Pausing the buyback enables us to prioritise investment that creates lasting value for shareholders, while continuing to deliver the reliable, affordable energy that households and businesses need to power economic growth through the transition.”
The move comes as the group accelerates capital deployment across its infrastructure portfolio, including a £1.3 billion capped investment in the 3.2 gigawatt Sizewell C nuclear project, where £376 million of equity has been committed as part of revenue commencement.
Acquisition of a 50% stake in the Grain liquefied natural gas terminal was also completed for an equity investment of about £200 million, within a £1.5 billion enterprise value deal alongside Energy Capital Partners.
Capital expenditure rose to £1.23 billion in 2025 from £564 million a year earlier, contributing to a free cash outflow of £167 million compared with a £989 million inflow in 2024.
Adjusted earnings before interest, tax, depreciation and amortisation fell to £1.4 billion from £2.3 billion, while adjusted operating profit declined to £814 million from £1.55 billion, reflecting lower commodity prices, nuclear outages and weaker gas trading conditions.
Despite lower earnings, the company increased its full-year dividend by 22% to 5.5p per share and returned £1.1 billion to shareholders during the year.
Adjusted net cash stood at just under £1.5 billion at year-end, down from £2.9 billion, as investment in regulated and contracted assets increased.