Centrica shares have fallen sharply after the British Gas owner posted results today.
Annual earnings halved in a “challenging” year as its household supply arm was knocked by an £80 million warm weather hit and as customers switched to cheaper deals.
The FTSE 100-listed company lifted its dividend by 22% but halted share buybacks in order to prioritise investment.
FTSE 100 Live Thursday
- Centrica guidance disappoints
- Brent Crude tops $70
- Rio Tinto pegs dividend
Market update: FTSE 100 falls back, Centrica and Rio Tinto under pressure
10:09 , Graeme EvansThe record-breaking FTSE 100 index came off the boil today after the release of annual results by Rio Tinto and Centrica weighed on the performance.
London’s top flight retreated 0.5% or 54.41 points to 10,631.77, having surged 1.2% or 130 points in yesterday’s session to set an all-time high close of 10,686.18.
Miners dominated the fallers board after Rio Tinto’s broadly flat earnings performance for 2025 got a lukewarm response.
Shares fell 4% or 284p to 7105p even though Rio’s unchanged total dividend of 405 US cents a share was at 60% of earnings for a tenth year in a row.
Copper miner Antofagasta gave up some of yesterday’s strong performance by falling 3% or 137p to 3863p and Glencore eased 10.75p to 496.95p.
Anglo American, which is due to report results tomorrow, fell 2% or 70p to 3591p.
The fallers board was led by Centrica, which dropped 7% or 14.7p to 181.3p after the British Gas owner put share buybacks on hold and disappointed the City with its 2026 earnings guidance.
The group completed its £2 billion share buyback programme in January, having repurchased a quarter of its capital at an average price of 136p since late-2022.
Centrica pledged to prioritise its resources on investment that creates “lasting value” for shareholders, with the company three-quarters of the way through its £4 billion programme to the end of 2028.
The company, which has grown its infrastructure portfolio through assets including the Sizewell C nuclear power station and the Grain LNG terminal, expects to continue investing around £600m-£800 million per annum beyond 2028.
Today’s results showed a sharp fall in 2025 operating profit to £814 million, driven by a challenging year at its household supply arm.
Centrica’s dividend policy is unchanged, with shareholders due to receive 3.67p a share as part of a 22% increase in 2025’s total to 5.5p.
Centrica disappoints with 2026 earnings guidance
09:30 , Graeme EvansCentrica shares today settled about 7% lower after the energy group put share buybacks on hold and disappointed the City with some of its 2026 guidance.
The energy trading arm is expected to deliver underlying earnings in the region of £250 million, which is below Centrica’s £300 million-£400 million guidance range.
City firm Berenberg said: “Overall, we think this was a solid set of numbers for 2025 and the increased medium-term outlook is supportive, but in the near term the focus is likely to be on the potential for lower consensus numbers in 2026 and the end of the buyback programme.”
Centrica also told investors today that it expects the proportion of adjusted earnings from regulatory and contractual sources such as Sizewell C and Grain LNG to increase to roughly a quarter of the group, from near nil today.
This increases to two-thirds of earnings when including Retail, which benefits from regulatory underpins from the Ofgem price cap and other contractual agreements.
Image of City skyline in 2032 released
08:31 , Graeme EvansA new image has revealed what the City’s ever changing and increasingly dramatic skyline will look like by the early 2030s.
The release by the Square Mile’s governing body follows a flurry of planning approvals for new skyscrapers.
The City Skyline CGI shows how new towers already under construction or have recently received planning consent will create an even denser forest of tall buildings in the heart of London’s oldest financial district.
Nestle in talks to sell ice cream business
08:26 , Graeme EvansNestle is in advanced negotiations over the sale of its remaining ice cream business.
The Swiss consumer giant confirmed talks with Froneri, an ice cream joint venture with private equity firm PAI Partners – which owns brands such as Haagen-Dazs.
The talks come as Nestle also starts the process for a potential sale of its waters and drinks business, which makes San Pellegrino and Perrier.
It said the division, reportedly worth £4.4 billion, is expected “to be deconsolidated from 2027”.
The moves are part of a strategy from recently-appointed boss Philipp Navratil to drive a turnaround amid pressure from shareholders.
FTSE 100 opens lower, Centrica shares down 8%
08:11 , Graeme EvansThe FTSE 100 index has made a weaker-than-expected start after closing last night at a record 10,686.18.
The top flight had been set to rise 0.2% at the opening bell but instead fell 31.94 points to 10,654.24.
Centrica shares slumped 8% or 15p to 181p after it put share buybacks on hold in order “to prioritise investment that creates lasting value for shareholders”.
The group completed its £2 billion share buyback programme in January, having repurchased a quarter of its capital at an average price of 136p since late-2022.
The shares have risen by a third over the past year.
Rio Tinto dropped 4% or 266p to 7123p following the release of annual results.
Brent Crude above $70 a barrel, gold tops $5000
07:53 , Graeme EvansBrent Crude is above $70 a barrel after the oil benchmark yesterday rose 4% on fears of supply disruption due to a US-Iran conflict.
Gold also returned above $5,000 an ounce, including a 0.7% rise in Asia trading.
IG said Wall Street is set to open slightly higher after Nvidia, Amazon and Microsoft led a recovery in technology shares in yesterday’s session.
It added that traders are pricing a 50% chance of a June US interest rate cut.
Minutes of the January meeting of the Federal Reserve showed policymakers in no rush to ease policy, with some open to further hikes if inflation remains elevated.
Rio Tinto extends 60% dividend record
07:42 , Graeme EvansRio Tinto today announced it will distribute 60% of its annual earnings to shareholders, the tenth year in a row at the top end of its 40%-60% guidance range.
The unchanged total dividend of 402 US cents a share is worth $6.5 billion and includes plans to pay an improved 254 US cents on 16 April.
The iron ore, copper and aluminium producer reported stable earnings of $10.9 billion in today’s annual results.
Chief executive Simon Trott said: “"Our solid financial results demonstrate clear progress as we embed our stronger, sharper and simpler way of working.”
Centrica profit falls, dividend up 22%
07:15 , Graeme EvansBritish Gas owner Centrica today reported a sharp fall in 2025 operating profit to £814 million, down from £1.5 billion the year before.
The residential energy supply business delivered £163 million, down from £269 million due to negative weather and commodity curve impacts.
The company said it made strong strategic progress, including significant investments in Sizewell C and Grain LNG, and that the ramping up of its transformation plan supported future profitability.
Chief executive Chris O’Shea said: “The environment has been challenging, and performance has varied across the business.
“However, we have remained disciplined, delivering strong operational performance and achieving customer growth across all our Retail businesses simultaneously for the first time in over a decade.”
A final dividend of 3.67p a share lifts the total for the year by 22% to 5.5p. However, the company put share buybacks on hold in order to prioritise investment opportunities.
FTSE 100 seen higher, GSK among ex-dividend stocks
07:01 , Graeme EvansThe FTSE 100 index is seen adding 0.2% after last night’s latest record high.
London’s top flight yesterday finished 1.2% or 130.01 points higher at 10,686.18, having peaked at 10,715 earlier in the session.
Today’s performance is set to be influenced by the large number of ex-dividend stocks, with Shell, BP, AstraZeneca, Barclays, GSK, Imperial Brands and easyJet all trading without their latest dividend entitlement.
Rio Tinto posted annual results earlier today, with the total dividend for 2025 unchanged at 402 US cents a share.
The Dow Jones Industrial Average yesterday rose 0.3%, the S&P 500 index rallied 0.6% and the Nasdaq Composite lifted 0.8%.
