Centrica (CNA) H2 2024 earnings summary

Executive summary

• Achieved profit targets two years ahead of schedule, with EPS of 19p and strong operational improvements, supported by accelerated investment programs.

• Returned £700m to shareholders and ramped up investment to nearly £600m, reflecting growing confidence and capital discipline.

• Announced a 22% increase in 2025 dividend to 5.5p, nearly 40% higher over two years, and extended share buyback by £500m.

• Focused on value-accretive investments, operational excellence, and leveraging unique capabilities in a dynamic energy market.

• Pathway established to deliver £1.6bn run-rate EBITDA by end of 2028, with ~85% of future EBITDA from current activities and projects.

Financial highlights

• Adjusted EBITDA reached £2.3bn, driving adjusted EPS of 19p, both down from 2023.

• Free cash flow was £1bn, with capital expenditure just under £600m.

• Net cash at year-end stood at £2.9bn, and £700m was returned to shareholders.

• Group adjusted operating profit was £1.6bn, lower than 2023 due to normalized market conditions.

• Paid nearly £1bn to governments in taxes and levies.

Outlook and guidance

• Pathway to deliver £1.6bn of EBITDA by 2028, with 85% from existing businesses and projects.

• Retail and optimization businesses expected to remain within guidance ranges for 2025.

• Intention to raise 2025 dividend per share by 22% to 5.5p; targeting £1.6bn end-2028 run-rate EBITDA.

• Services and solutions targeted to reach £100–£200m in 2026.

• Net cash projected to decrease in 2025 due to higher investment and shareholder returns.