Centrica North Sea losses seen higher, reiterates FY guidance

(Sharecast News) - British energy and services firm Centrica reiterated its FY guidance on Thursday despite warning that losses were expected to increase at its Centrica Energy Storage+ subsidiary, which operates the UK's largest gas storage site in the North Sea. Centrica cautioned that "challenging market conditions" in gas and power meant that profits at Centrica Energy, its energy and logistics division, would now sit at the lower end of guidance, while Centrica Energy Storage+, which runs the North Sea's Rough gas field, was expected to see losses come in at the higher end of its £50.0m to £100.0m guidance.

However, the FTSE 100-listed group still reiterated FY profit guidance and revealed its annual dividend payout would be hiked to 5.5p per share, up from 3.0p per share a year earlier.

Centrica also noted that "constructive discussions" with Westminster were ongoing as it looks to secure a regulatory support mechanism that would unlock £2.0bn of investment to increase the Rough gas field's capacity and ultimately convert it into a hydrogen-ready storage facility.

"The usual uncertainties remain for the balance of the year, including weather, commodity prices, regulation and government policy. As is normal, Ggroup profitability is expected to be weighted to the first half of the year," said Centrica.

"We are closely monitoring the impact of potential global trade restrictions and will continue to do so. Given our diversified supply chains across key projects and operations, we do not currently anticipate any material impact on our business or financial results."

As of 0840 BST, Centrica shares were down 7.07% at 147.80p.

Reporting by Iain Gilbert at Sharecast.com