Is CNA.L (Centrica plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CNA.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Its debt-to-market-cap ratio of 33.84% exceeds the ≤33% threshold. Its cash & securities ratio of 47.85% exceeds the ≤33% threshold.

Cent rica plc is an international energy services and solutions company, best known in the UK as the parent company of British Gas. It supplies electricity and gas to millions of residential and business customers, while also operating significant upstream assets, including nuclear power generation and energy trading desks. Its operations span the UK, Ireland (via Bord Gáis Energy), and North America, focusing on the transition to lower -carbon energy through services like boiler installation and EV charging infrastructure. For Muslim investors using AAOIFI standards, Centrica is currently classified as Not Halal (Haram). Although the company's core business of selling energy is permissible , it failed two out of the three financial screening tests. Specifically, the stock carries too much interest-bearing debt relative to its market value and holds an excessive amount of cash and securities, which violates Islamic finance principles regarding liquidity and interest exposure. Financially, the company's debt-to-market cap ratio sits at 33.8%, just narrowly missing the permissible threshold of 33%, while its cash and securities ratio is significantly higher at 47.9%. This high liquidity suggests a large portion of the company's value is derived from cash assets that likely earn impermissible interest income. Until the company reduces its debt load or deploys its excess cash into physical assets, it remains unsuitable for shariah-compliant portfolios . Investors monitoring this stock should watch for balance sheet restructuring or debt repayment, which could bring the debt ratio back under the 33% limit. However, the high cash reserves remain a significant hurdle, as Islamic finance rules prevent investing in companies where nearly half the market capitalization is backed by liquid cash rather than productive business assets. Centrica plc operates in the Utilities sector under the Independent Power Producers industry and is headquartered in Windsor, GB. The company is led by CEO Christopher Michael O'Shea and employs approximately 21,038 people.

CNA.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. CNA.L passed 2 of these 4 screens.

CNA.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.