Centrica PLC (LON:CNA, the owner of Britain’s largest energy supplier British Gas, saw its shares drop over 3% today despite reporting a “robust” set of 2016 results and flagging up the possibility of increased future dividend payments, with investors seemingly disappointed that the current payout has been left unchanged.
In early trading, the FTSE 100-listed firm's shares were down 7.6p at 226.1p.
For the year ended December 31, Centrica saw its adjusted earnings increase to £895mln, up from £863mln in 2015, with adjusted operating profits rising to £1.515bn, up from £1.459bn a year earlier, and above forecasts for £1.47bn.
The improvements came despite revenues slipping by 3% to £27.1bn, down from £28.0bn in 2015.
The firm said its efficiency programme delivered cost-savings of £384m, with a reduction in direct head-count of over 3,400 in 2016, both ahead of target. The group expects further £250m cost savings from its efficiency programme in 2017.
Centrica’s group chief executive, Iain Conn, said: “2016 was a year of robust performance and progress in implementing our customer-focused strategy.”
He added that “Centrica enters 2017 a stronger company – with encouraging underlying momentum and positioned to deliver longer-term returns and growth.”
Dividend focus ...
Centrica said it net debt was reduced by 27% to under £3.5bn and it expects debt levels to fall to £2.5bn-£3bn by the end of this year, a range that it said will allow it to raise its dividend payments.
But the firm left its 2016 full-year dividend unchanged at 12.0p.
Centrica reduced its annual payout in 2015 after its core business was hit by weak energy prices and lowered it again last year.
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