By Geoffrey Smith
Investing.com -- Centrica (LON:CNA) shares hit their highest level since May 2019 after the U.K. utility raised its forecasts for the full year again on the back of record gas and power prices.
By 03:25 ET (08:25 GMT), Centrica stock was up 5.5%, outperforming the FTSE 100 that was up only 0.5%.
Centrica, whose British Gas business is the dominant player in Europe's second-largest gas market, said it now expects full-year earnings per share to be above 30 pence. Only two months ago, it still expected EPS to be no higher than 26p.
The upgrade follows an intense week-long cold snap in the U.K. that sent heating demand surging. While the U.K.'s weather has returned to warmer-than-usual temperatures since then, Centrica gave no indication that it expected this to weigh on earnings.
The company said that cash generation has also been good, in what may reflect lower purchase costs for power and gas in the last couple of months. It expects to have had over £1 billion (£1 = $1.214) in net cash as of the end of 2022.
The U.K. government has capped prices for typical household and corporate fuel bills through April, ensuring that demand has stayed robust. However, it signaled earlier this week that energy subsidies for businesses would be sharply scaled down in the spring due to the cost to public finances.
Centrica reports its full 2022 results on February 16th.