I think the numbers are good. The update reaffirmed Centrica’s full year outlook and reassured investors of the prospect of growing demand. The fact that they’re able to spend additional profits on freezing domestic energy tariffs as a goodwill gesture to customers tells its own story.
MALCOLM GRAHAM-WOOD VSA CAPITAL
The figures marginally beat expectations and are quite positive, as they show that Centrica is winning market share in the important UK market. I think they should invest more money into their nuclear business, but I don’t know if they will as they are planning to import gas from the US.
MARTIN BROUGH DEUTSCHE BANK
The decision to use weather benefits to limit upward pressure on retail prices is the right one given rising household concerns about energy affordability. Centrica should be able to sustain a retail margin of around six per cent, but we see political risks rising ahead of a likely May 2015 general election.