Centrica PLC forecast full-year EPS towards the top end of City expectations and announced plans for a share buy-back after reporting a continued strong operational performance since the end of the first half.
In a trading update, the company said it would start a buy-back programme of up to 5% of its share capital, reflecting the recent performance and outlook.
But the owner of British Gas said inflationary and economic pressures have impacted its cost base and customer numbers in British Gas Services & Solutions, while warmer-than-normal weather in October has contributed towards lower volumes and profits in British Gas Energy.
As a result, the group now expects adjusted operating profit in the Retail division to be lower than current expectations.
Centrica said a number of uncertainties remain over the remaining two months of the year, including the impacts of weather, commodity price movements, asset performance and the potential consequences of a weak economy and high inflation on commercial performance in British Gas Services & Solutions and bad debt in the group's energy supply activities.
Nevertheless, it said its balance sheet remains strong with overall levels of liquidity up since the half year.
Volumes from electricity generation and gas production activities have remained strong, while the reopening of the Rough gas storage facility will also contribute to strengthening the UK and Ireland's security of supply.
In addition, Energy Marketing & Trading continue to perform very well, playing a critical role in storing, transporting and balancing energy supply across Europe.
Centrica also pledged a further £25mln of help for its customers, taking the amount invested in voluntary customer support this year to £50mln.