London, Feb 25, 2026, 09:26 GMT — Regular session
- Centrica shares climbed roughly 1.7% soon after the open.
- The Whitecap agreement kicks in for 2028, tied directly to Europe’s TTF gas benchmark.
- Centrica’s revised trading outlook and fresh capital returns remain in the investor spotlight.
Centrica shares climbed roughly 1.7% to 194.1 pence as of 0926 GMT, after the owner of British Gas revealed a 10-year natural gas supply deal with Canada’s Whitecap Resources. Deliveries kick off in April 2028. CEO Chris O’Shea described the move as a step toward “a balanced LNG portfolio.” Grant Fagerheim, Whitecap’s chief executive, said it highlights Whitecap’s push to be “a reliable source of energy.” (Investing.com)
Centrica’s full-year figures dwarf this agreement, but investors are watching for any indication the group might smooth out swings in its LNG trading book—without sacrificing too much potential upside.
The move hands the market a fresh talking point, after last week’s earnings reset. Investors are now weighing whether Centrica’s push into longer-term, more heavily contracted assets might help stabilize a business that’s long been at the mercy of wild gas prices and unpredictable weather.
On Feb. 19, Centrica warned that profit from its Optimisation trading arm was set to fall short of previous forecasts this year. The company temporarily halted its share buyback as annual profit slipped. “Pausing the buyback enables us to prioritise investment,” CEO O’Shea said at the time. JPMorgan analysts noted the revised outlook, combined with transformation costs, could drag near-term estimates lower. (Reuters)
Whitecap’s deal pegs supply prices to the Title Transfer Facility, or TTF, the main benchmark for European gas. Volumes come in MMBtu—million British thermal units, the industry standard for gas contracts.
Whitecap says its deal with Centrica backs up its push to shift future gas sales away from regional price exposure, linking part of its volumes to premium hubs like TTF. (Whitecap Resources Inc)
Centrica’s main concern isn’t really the 2028 volumes—what matters is what this contract suggests. The company is opting to align its LNG exposure with supply that’s pegged to European price swings, avoiding the risk of being overexposed or underexposed to gas when the timing’s off.
Timing looms as the clear risk here. The contract kicks in come April 2028—so forget about any impact on this year’s trading numbers or the ongoing cash flow argument sparked by the buyback freeze.
Investors know “hedging” isn’t a cure-all. Compressed spreads, or when volatility migrates elsewhere on the curve, can still hurt the portfolio—even with tighter matching in place.
Looking ahead, investors now have dates to track: Centrica’s proposed final dividend will need the green light at the AGM set for May 7, with the record date locked in at April 10 and payment penciled in for May 14. That shareholder vote, along with any new detail on capital returns, stands as the next key gauge of sentiment. (Centrica Plc)
