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Centrica Profit Halves as Warm Weather and Trading Slump Bite, Buybacks Paused for Energy-Security Investments

The company is redirecting cash to Sizewell C, Grain LNG, storage projects to pursue steadier, infrastructure‑style returns.

Overview

  • Centrica reported adjusted operating profit of £814 million for 2025, down 48% from 2024, citing an £80 million weather hit and weaker gas and power trading influenced by volatile markets and EU storage rules.
  • The board paused share buybacks after returning over £1 billion last year, prioritising capital for large projects including a £1.3 billion commitment to Sizewell C and the Grain LNG acquisition, with £600–800 million per year targeted for the transition through 2028.
  • Shares fell as much as about 9% after the announcement and closed roughly 5% lower on the day, while the group ended the year with around £1.5 billion of adjusted net cash and a £200 million free cash flow outflow after higher investment.
  • The Rough gas storage site lost £45 million in 2025 and is forecast to roughly break even in 2026, with its long‑term role awaiting a UK government decision expected in the first half of the year.
  • Household supply earnings fell 39% to £163 million as more customers moved to discounted fixed tariffs and used less heating; the annual report also disclosed CEO Chris O’Shea’s total 2025 pay of about £4.73 million, including roughly £3.6 million in bonuses and awards.