Centrica - politically astute although out-of-favour

I wrote about Centrica just over a week ago and noted that it was out-of-favour below 350p.  The share has pleasingly had a little bounce since then, but today released a trading update.  What did the company say?

First I note the political awareness of the group.  They start the interim management statement with talk of 'unprecedented times' and 'household incomes under pressure' and pepper the statement with comments on how difficult/challenging the customer-facing divisions are finding trading life.  Additionally - and correctly - they note that politicians also have a role to play in ensuring energy bills do not move further out of control.

In terms of the operational detail, the mix of a loss-making residential service division but an increasingly profitable upstream fossil fuel exploration/production division should come as no surprise.  Flat EPS in 2013 year-on-year would be broadly inline with hopes. 

The buyback continues and, as noted previously, the other major positive attribute of a 5%+ dividend looks well-entrenched. 

I remain happy with Centrica after establishing a position after my out-of-favour observations a week or so ago and at the aforementioned levels last week would augment my position further.