Centrica PLC

CNA: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 197.00	Sdhgv	Nghdstbx

Centrica Earnings: Boosted by a Material One-Off, Shareholders Return and Growth Investments Upped

Tancrede Fulop

Jul 27, 2023

No-moat Centrica released first-half results well above expectations thanks to a material positive one-off. The group increased (again) its share buyback plan by GBP 450 million. Further, it increased its interim dividend by 33%, involving a full-year dividend of GBX 4. Last but not least, Centrica raised its growth investments and provided medium-term guidance for its retail and optimisation businesses. We commend this as Centrica has always stood out from other utilities by its lack of visibility. Our fair value estimate is GBX 140.

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