The company credits electricity generation and gas production for the boost to its guidance, which will leave earnings per share up at least sevenfold on 2021.
Centrica, the owner of British Gas, has raised its earnings forecast for 2022 on the back of soaring energy prices.Centrica credited its electricity generation and gas production activities for the upgrade - as opposed to profitability at its household supply arm.EPS - a measure of profitability calculated through the number of shares in circulation - had previously stood at the upper end of a 15.1p to 26p guided range following several upgrades.
Because Centrica had reported EPS of 4.1p for 2021, the new forecast meant earnings were now expected to rise at least sevenfold on an annual basis.The company, and rivals, all suffered tens of billions in losses when the COVID pandemic struck - leaving rawBut as economies slowly got back in gear, and with demand outstripping supply, prices recovered.
Last week, Shell revealed it was expecting to take a £2bn hit from UK and EU windfall taxes combined. Russ Mould, investment director at AJ Bell, said:"Higher energy prices are not bad news for everyone - with Centrica once again upgrading forecasts. "How much credit the business itself can take for its revived fortunes is an open question but, for now, financial performance is undoubtedly strong."
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