Any thoughts on the company?


Red line 200 MA

24 Mar 2015 "Deutsche Bank cuts Centrica to 'sell' from 'hold', target cut from 280p to 225p"

Director/PDMR Shareholding Purchase: Director/PDMR Shareholding Purchase: http://www.moneyam.com/action/news/showArticle?id=4693532

Some more Director activity http://www.moneyam.com/action/news/showArticle?id=4694567

U.K. utility Centrica (CNA.LN) is preparing to abandon a GBP2 billion offshore wind farm project because subsidies offered by the U.K. government are too low, The Daily Telegraph reported on its website Monday.

British Gas, which owns Centrica, will not build the Race Bank wind farm, 17 miles off the north Norfolk coast, unless proposed subsidies are significantly increased, three sources told The Telegraph.

Government ministers will not confirm final subsidy levels until December but are thought unlikely to increase draft prices enough for the project, which Centrica said could power 450,000 homes, to go ahead, The Telegraph said.

Full story: http://www.telegraph.co.uk

A bit surprised that that piece of news didn't push the SP upwards, volume pretty average as well oh well might be early days.

stan don't forget the politics of the moment.

True enough H/F, bit of a tick up today so hope it continues to the Trading Update due on Thursday.

Over double the Ave. volume today so hoping for a decent rise in the near future with these.

Mr Market looking for a good IMS in the morning...hope he's right, we need a bit of a boost after these last few weeks.

Interim Management Statement

Mr Market was wrong this time!

So was I!!

...and I :-(

From II lunchtime flier :-

Centrica PLC Could Be Worth 400p

400p? Well I wish it would get a move on then -):

ask Red ED!

Ask him yourself.

Centrica: Undervalued and High Yielding

Centrica is a four star stock according to Morningstar analysts, meaning the energy provider is undervalued - all while paying a 4.67% yield

Centrica (CNA) has achieved steady earnings and dividend growth despite reduced retail gas and power demand and a large tax increase on North Sea gas production. The solid financial performance during tough macroeconomic times was due to its strategy of hedging roughly 50% of its retail energy sales with its own assets. However, owing to the declining production in the aging Morecambe gas fields, Centrica has made several acquisitions of gas properties and increased its exploration to maintain this effective hedge level.

The key to continued earnings and dividend growth will be the amount of oil and gas Centrica produces from these acquisitions and the success of its exploration programs. Both create risk for investors. Still, we believe the company's strong balance sheet and diverse earnings can support its attractive dividend.

Centrica is also betting on the success of its retail strategy in the U.S. The mid-2013 acquisition of Hess’ energy marketing business makes Centrica the largest business gas supplier on the East Coast and the second-largest business power supplier in the U.S. Whether this integration along the retail energy chain can create a moat (competitive advantage) remains to be seen.

If natural gas prices rise from current levels, Centrica's new investments in natural gas production should result in strong earnings growth.

Centrica's 270 MW Lincs offshore wind farm and the company's large development pipeline of offshore wind projects position the company well in case the U.K. government elects to pursue offshore wind for reducing carbon from power generation.

The British Gas brand name has contributed to strong growth in the residential HVAC maintenance and heating system installation businesses.

But retail energy prices have risen significantly the past few years, and political pressure to keep prices low for homeowners is a headwind for earnings growth in the retail energy business. The increase in the supplementary corporation tax on North Sea gas production also puts an additional burden on Centrica's ability to grow earnings and hedge its retail natural gas sales.

Any thoughts on chart support levels? Nothing immediately obvious as solid support above 310p. (Next divi date mid April 2014)

Disposal

CENTRICA TO SELL TEXAS GAS-FIRED POWER STATIONS AND EXTEND ITS SHARE REPURCHASE PROGRAMME

Centrica plc’s North American subsidiary, Direct Energy, has agreed to sell its Texas gas-fired power stations to Blackstone for $685 million (£420 million) in cash. The three units, located in Paris, Bastrop, and Mission, have a combined capacity of 1,295MW. As part of the transaction, Direct Energy has also entered into a three year call option arrangement for an equivalent amount of capacity with Blackstone.

Badar Khan, President and CEO of Direct Energy, said: “This transaction allows us to realise value from our gas-fired fleet, while ensuring stability of price and supply in the Texas power market through the call option arrangement.”

“Residential retail supply is key to our North American business, and with sufficient generation capacity in Texas, we can support our downstream business through contractual arrangements, rather than asset ownership.”

Centrica plc will return the proceeds from this sale to shareholders through a £420 million extension of its share repurchase programme, which will be conducted over the course of 2014.

Sorry I can't offer on support levels H/C, but just feel that these have been grossly overdone, will come back sometime so happy to collect the divi in the meantime.