The owner of British Gas has been dubbed a ‘pantomime villain’ after telling investors it expects ‘significantly higher’ profits in its household supply business over the coming year.
Ahead of yesterday’s annual general meeting, Centrica said in a trading update its performance so far this year ‘has been strong overall’.
Full-year earnings per share for 2023 were set to be ‘around the top end’ of analysts’ expectations.
A spokesman said: ‘As always, uncertainties remain over the balance of the year including the impacts of weather, commodity prices, the economic environment, any changes to regulation or government policy, asset performance and the competitive backdrop for our energy supply businesses.’
British Gas owner Centrica said full-year earnings per share for 2023 were set to be ‘around the top end’ of analysts’ expectations
Bosses managed to quash a feared shareholder rebellion over their pay.
Just 7 per cent of investors voted against the top dogs’ pay packets for last year.
Chief executive Chris O’Shea, who was appointed boss in 2020, was awarded £4.5million in total, including an annual salary of £790,000 and bonus payments of £3.7million.
Critics had pointed to the cost of living crisis facing millions of households over the past year, following Russia’s invasion of Ukraine causing energy prices to spike.
Although shareholders may welcome the profit update, it will not impress many struggling households, said analyst Russ Mould at investment platform AJ Bell.
‘The company is starting to resemble a pantomime villain,’ Mould said, arguing the ‘optics are particularly uncomfortable’ given the firm has benefited from rule changes that allow it to reclaim losses from its capped prices.
‘Unlike some utility suppliers, Centrica has been spared much pain during the energy crisis because it benefited from its wholesale business.
‘Before 2022 the British Gas operation saw significant churn amid strong competition, yet much of that competition has now exited the market, putting Centrica in an enviable position.
‘The question is whether political and regulatory pressure will intervene to upset the apple cart.’
Centrica shares fell 0.2 per cent, or 0.25p, to 117.65p.
