Centrica (CNA) Status Update summary

Strategic outlook, vision, and value creation

• Focus on electrification, intermittency, consumer engagement, and a greener future through operational excellence, commercial innovation, and targeted investments.

• Centrica Energy and MAP businesses are positioned to benefit from energy market trends, group synergies, and de-risk each other.

• Operational excellence, attractive customer offers, and disciplined investment underpin strategy, with over 6.5 million customers migrated to a new platform.

• Updated climate transition plan to be launched in January, aligning with decarbonization targets.

• Hard-to-replicate capabilities and integrated model position the group to benefit from the changing energy system.

Financial performance, outlook, and investment plans

• 2024 earnings for most businesses expected within medium-term range, two years ahead of plan, with capex of ~£600m and share buyback extended by £300 million.

• Group EBITDA expected to reach around £1.6 billion by 2028, with over 85% from in-flight or sanctioned activities.

• Medium-term sustainable adjusted operating profit targets: £250m–£350m for Centrica Energy, £100m–£200m for British Gas Services & Solutions, and £150m–£250m for British Gas Residential Energy Supply by 2026.

• Progressing towards a £600m–£800m annual investment programme, with strong balance sheet and capital returns to shareholders.

• Targeting return on invested capital above 20% throughout the investment cycle.

Centrica Energy business model, capabilities, and growth

• Asset-backed, diversified trading and logistics model with strong risk management, digital capabilities, and operations in 28 trading markets.

• Evolved from UK gas-centric to pan-European gas and power optimisation, with global LNG portfolio and 850+ employees across 7 countries.

• Over 11 million trades in 2023, ~16GW renewable/flexible power assets under management, and 260 LNG cargoes traded globally.

• Ambition to grow renewables assets under management to 28GW by 2030, with ~70% of PPAs extending beyond 2026.

• Confident in delivering £250–350 million operating profit range under normal market conditions.