JP Morgan has added Centrica PLC (LSE:CNA), the owner of British Gas, to its Analyst Focus List, arguing the market has overreacted to this year's earnings downgrades. Analyst Pavan Mahbubani kept his 'overweight' rating on the FTSE 100 energy group and sees 53% upside in the shares.
Centrica is transitioning into a focused, integrated energy company with improving earnings quality and a more attractive core business. CPYYF trades at a steep discount to sector peers, reflecting higher risk from commodity exposure, customer debt, and execution, yet it offers significant upside if execution improves. Retail earnings are stabilizing through the UK price-cap cycle, but bad debt and competitive pressures remain key risks; home services show margin and growth improvement.
Centrica plc (CPYYY) Q2 2026 Earnings Call Transcript
Centrica PLC (LSE:CNA) hiked its interim dividend 9% despite lower first-half profits, where energy-market volatility meant progress in parts of the British Gas owner's business was “slower than we would like”. Underlying earnings (EBITDA) of £737 million were reported in the six months to June, down 18% compared to a year earlier.
Centrica PLC (LSE:CNA) said Sizewell B is set to operate for another 20 years after the UK Government signed Heads of Terms for a regulated Contract for Difference that runs from 2035 to 2055. The agreement gives the Suffolk nuclear power station, in which Centrica owns 20%, a guaranteed strike price of £70.50/MWh from April 2035 to March 2055, based on 2025 prices and indexed to CPI inflation.
Centrica PLC's (LSE:CNA) long-term value could receive further support from a reported agreement to extend the life of the Sizewell B nuclear power station, according to Citi. A Bloomberg report suggested that EDF and the owner of British Gas Centrare close to agreeing heads of terms with the UK government for a 20-year extension of the plant's operating life.
British Gas owner Centrica has agreed to pay 20 million pounds ($26.69 million) into a redress fund after investigators found the utility installed prepayment meters in the homes of vulnerable customers without their consent, regulator Ofgem said.
Here is how Centrica PLC (CPYYY) and MYR Group (MYRG) have performed compared to their sector so far this year.
British Gas owner Centrica PLC (LSE:CNA) has completed the £370 million acquisition of a gas-fired power station in south Wales, as it flagged strong infrastructure earnings but weaker retail performance in its latest trading update. The FTSE 100 energy supplier said the 850MW Severn power plant lifts its power portfolio to 4GW, including assets in development.
Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) shares rose 2.6% to 640p on Thursday, extending a remarkable run that has seen the Horsham-based clean energy technology developer's stock more than double in the past month, valuing the company at £1.24 billion. The immediate catalyst was the announcement of an infrastructure partnership between Delta Electronics and Centrica, targeting the data centre market and energy-intensive industries across the UK and Europe, with solid oxide fuel cells (SOFCs) providing off-grid energy generation.
Centrica (CPYYY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Here is how Centrica PLC (CPYYY) and MYR Group (MYRG) have performed compared to their sector so far this year.