British Gas owner Centrica adds £300m to share buyback plan amid nuke boost

FTSE 100 stalwart Centrica has bolstered its share buyback initiative with an extra £300m, taking the total shares repurchased over the past two years to a staggering £1.5bn.

In a trading update today, British Gas's parent company signalled that it foresees its full-year earnings and net cash for 2024 mirroring market expectations, as reported by City AM.

Analysts project an adjusted earnings per share of 18.5p for Centrica in 2024, alongside an anticipated net cash position of £2.6bn. "The usual uncertainties remain for the balance of the year, including weather, commodity prices and asset performance," the energy firm highlighted.

Since commencing in November 2022, Centrica's ambitious share buyback plan is on track to acquire roughly 20% of its stock by September 2025.

Just last week, the company announced the extension of the operational life for four of its nuclear reactors until March 2027 – a year longer than previously planned. Nuclear output in the United Kingdom has been incrementally rising throughout 2024, registering a 2% increase since the year's start, as per analysts from Jefferies.

In another sector insight, domestic gas consumption in UK households was six per cent higher than the three-year average from September to November. Coinciding, electricity and gas prices have surged by 20-30%.

These updates surrounding its nuclear ventures contributed to a 12.7% rise in Centrica's share price over the past month. Despite this jump, the company's shares are still trailing seven per cent behind since January started.