By Scott Kanowsky
Investing.com -- Shares in Centrica PLC (LON:CNA) surged on Thursday after the energy group unveiled a new share buyback program following solid operational performance.
In a statement, the Windsor-based company said its recent volumes from electricity generation and gas output activities have "remained strong" despite inflationary and economic pressures weighing on customer demand and increasing expenses.
With these trends in mind, Centrica pledged to commence a share repurchase plan of up to 5% of its issued share capital - its first round of buybacks since 2014. Media reports suggest the program will last 3 to 4 months and be worth £250 million (£1 = $1.1381).
Centrica - the parent firm of home energy services company British Gas - also said it expects annual adjusted earnings per share to be towards the top end of the range of analyst estimates, which were between 15.1p and 26p prior to the trading update.
However, it flagged "significant uncertainties" over the remaining two months of 2022, including "the impacts of weather, commodity price movements, asset performance and the potential consequences of a weak economy and high inflation" on British Gas.