‘Panto villain’ Centrica slammed earnings after telling investors it expects huge profits
The owner of British Gas has been called a ‘pantomime villain’ after telling investors he expects ‘significantly higher’ profits in his household supply business in the coming year.
Ahead of yesterday’s annual general meeting, Centrica said in a trading update that performance so far this year has been “generally strong.”
Full-year earnings per share for 2023 would be “around the high end” of analyst expectations.
A spokesperson said: “As always, uncertainties remain about the balance of the year, including the impact of weather, commodity prices, the economic environment, regulatory or government policy changes, asset performance and the competitive environment on our energy supply activities.’
British Gas owner Centrica said earnings per share for 2023 would be around the high end of analyst expectations
Bosses managed to quell a feared revolt by shareholders over their wages.
Only 7 percent of investors voted against the top dogs’ pay packages last year.
Chief executive Chris O’Shea, who was appointed boss in 2020, received a total of £4.5 million, including an annual salary of £790,000 and bonus payments of £3.7 million.
Critics had pointed to the cost-of-living crisis affecting millions of households over the past year, following the Russian invasion of Ukraine, which drove up energy prices.
While shareholders may welcome the earnings update, it won’t impress many struggling households, said analyst Russ Mold of investment platform AJ Bell.
“The company is starting to look like a pantomime villain,” Mold said, arguing that the “optics are particularly inconvenient” as the company has benefited from rule changes that allow it to recover losses from its capped prices.
“Unlike some utilities, Centrica was spared a lot of pain during the energy crisis because it took advantage of its wholesale business.
Prior to 2022, the British Gas operation saw significant attrition amid strong competition, but much of that competition has now exited the market, putting Centrica in an enviable position.
“The question is whether there will be political and regulatory pressure to upset the apple carts.”
Centrica shares fell 0.2 percent, or 0.25 pence, to 117.65 pence.