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"

Stop to entry for risk free trade. Ironic all this doom and gloom and ex-divi to boot sp rises :0)

HSBC Hold 172.75 190.00 190.00 Reiterates

StockMarketWire.com
Centrica has acquired REstore NV, Europe's leading demand response aggregator, for €70m in cash.

REstore - which has its headquarters in Antwerp, Belgium - manages 1.7GW of peak load from a portfolio of industrial and commercial (I&C) customers across Belgium, the UK, France and Germany, generating value for businesses through ancillary services including frequency response and capacity markets.

The company's patents are currently used by over 150 of Europe's largest energy users, including chemical, steel and food manufacturers.

The business will form part of Centrica's international distributed energy and power unit, which provides energy insight, asset optimisation and energy solutions to large energy users under the Centrica business solutions banner.

Centrica said that through this acquisition, demand response aggregation would become a core part of the offer to customers and was expected to represent a significant growth opportunity as global electricity markets evolved.

Expansion of Connected Home business into Italy

Centrica plc today announces a significant expansion of its Connected Home business into Italy.

Centrica has signed a five-year partnership arrangement with Eni gas e luce, a leader in the Italian retail energy market with 8 million customers.

The partnership with Eni gas e luce is an important milestone in Centrica Connected Home's plan to expand its footprint into new geographies. The Hive portfolio of products and solutions for the home is already available in the UK, Ireland and North America. Thanks to this partnership, Eni gas e luce and Centrica will now develop the connected home market together in Italy.

The Hive product range is all controllable from the award-winning Hive app and includes the Hive smart thermostat which enables customers to manage their heating and hot water remotely. The full Hive range including the thermostat, smart lights, door and window sensors and smart plugs will be available to Italian consumers from 20th November.

Nina Bhatia, Managing Director of Centrica Connected Home, said:

"Strategic partnerships are going to be increasingly important to the growth of Centrica Connected Home. We are delighted to announce we are working together with Eni gas e luce to bring millions of new customers our Hive range of products and solutions.

"Through our customer knowledge, insight and experience, we understand that people want more from their energy and services provider - they want to be in control of how they run their home. Our products and services enable customers to automate their homes, manage their energy and get peace of mind.

"This announcement marks the start of the expansion of Hive into Italy and other new markets during 2018."

END

StockMarketWire.com
Centrica has set out a package of actions and proposed measures to reform the UK energy market and benefit customers.

Centrica said the proposals would increase engagement and choice, result in better deals and reduce average bills, deliver a fairer allocation of energy policy costs, and further protect vulnerable customers.

It aid: 'As market leader, we are announcing seven unilateral steps we will take, and proposing a further seven recommended actions for Ofgem and the Government, designed to improve the market further.

'We believe our proposals will deliver a fairer, more competitive and sustainable energy market for customers and will be significantly more effective than further Government intervention through temporary price controls.'

Group chief executive Iain Conn said: 'We fully recognise that the energy market can and should be improved, but further price controls will only set this back.

'We believe more action is needed and are ready to play a leading role.

'Today we have set out the unilateral actions we will take to improve the UK energy market for our customers.

'This starts with the withdrawal of the Standard Variable Tariff which contributes to lower levels of customer engagement.

'We also believe that further measures by Ofgem and the Government are required so that together we can create a market that works for everyone, where there is improved transparency and a fairer allocation of costs currently included in the energy bill.

'We have long advocated that the end of the Standard Variable Tariff is the best way to encourage customers to shop around for the best energy deal.

'But we also need a fairer way to pay for the changing energy system by removing Government policy costs from energy bills.

'This will be fairer for everyone and especially those who struggle most with their bills.

'Politicians, regulators and energy companies acting together can do better than simply imposing a temporary cap or freezing household energy bills.

'Working in partnership, we can create a fairer, more competitive energy market for the long-term. We ask that the Government and Ofgem engage with us and other members of the industry to evaluate these proposals in the period up to March 2018.'

Centrica said it would:
- Unilaterally withdraw the Standard Variable Tariff (SVT) for new customers, aimed at increasing customer engagement

- Provide new offers to respond to customers' changing needs

- Proactively offer customers a choice of fixed term tariffs at the end of their contract

- Introduce a new fixed term default tariff

- Engage customers on legacy Standard Variable Tariffs and offer them better deals

- Introduce simple no nonsense bills for all its customers

- Drive further improvements in customer service and in its own efficiency -

StockMarketWire.com
Centrica remains on track to achieve its full-year targets but it said trading conditions continued to be highly competitive.

It said the performance delivery since mid-year within the Centrica Business energy supply businesses had been disappointing and warned that full-year adjusted earnings per share would be lower than market consensus.

It said 2017 full year adjusted earnings per share were expected to be around 12.5p, reflecting lower than expected adjusted operating profit in North America Business and UK Business.

'We are also reflecting the expected impact of warmer than normal weather across October and November. Actual financial performance remains subject to the usual variables of commodity prices, weather and asset performance over the balance of the year.'

The group said that in Centrica Consumer, delivery from the efficiency programme was offsetting overall gross margin decline.

It said energy supply accounts had fallen, but this largely reflected choices the group had made to focus on customer value, while in recent weeks account holdings in UK Home Services had stabilised and growth in Connected Home continued.

An update said: 'In Centrica Business, we have experienced significant market pressures in our North America Business retail power book, and in UK Business we are not yet seeing improved operational performance flowing through to the bottom line.

'We are also reflecting a one-off non-cash post-tax charge of £46m in North America Business, relating to a reassessment of the historic recognition of unbilled power revenues.

'In the asset businesses, the Morecambe field is back on production and Spirit Energy, Centrica's E&P joint venture with Stadtwerke Munchen, is on target to close before the end of the year, subject to regulatory approvals.'

Centrica group chief executive Iain Conn said 'Although some aspects of our delivery in the second half of 2017 have been disappointing, I remain encouraged by our progress in implementing our strategy.

'The balance sheet has been materially strengthened, and we continue to focus on improving our underlying performance.

'We have also provided a broad and definitive set of proposals this week to improve the UK energy market for customers and look forward to engaging with the Government and regulator in the coming weeks.'

Investec today:
"Centrica shows the hallmarks of a business under tremendous pressure – from competitors, customers, and policy makers. Business energy supply is now added to the medley of woes. Questions will invariably be raised regarding management’s grasp on performance and risks. We update FY17E forecasts in line with guidance, assume lower normalised B2B margins, and now include the impact of the expected UK domestic supply price cap on earnings from FY19E. However, after a c. 40% YTD share price fall, our revised TP of 140p means we upgrade to HOLD."

Goldman Sachs today:
Following the weak share price performance year to date (-37% total return, -50% total return versus SX6P) we upgrade Centrica to Neutral (from Sell). On our new estimates, Centrica trades on 10.9x 2020E P/E, which implies an 8% discount vs. peers on 12x. We continue to see downside risks to UK supply as highlighted in our September 7, 2016 report, UK Utilities: Structural headwinds to gas supply, Sell Centrica. In particular, we expect profits in gas supply to fall as a result of low-cost competition. However we believe this is now priced into the shares with the stock trading 7% below our new 12-month price target of 149p (was 163p) and hence upgrade the shares."

An update on the chart from October.

RBC Capital Markets Sector Performer 137.65 210.00 150.00.

JP Morgan Cazenove Neutral 147.65 150.00 150.00 Reiterates

Sad looking chart, if we get a Santa Rally gap screaming to be filled long to 160p, question is can it breach it? A harsh winter is rumoured if it can breach 160p may be worth a trade on the spreads. Watching.

Spirit Energy Launched

SPIRIT ENERGY LAUNCHED FOLLOWING COMPLETION OF CENTRICA AND BAYERNGAS NORGE E&P JOINT VENTURE

Spirit Energy, the E&P joint venture which combines Centrica plc's E&P business with Bayerngas Norge AS, has begun trading as an independent oil and gas operator. Completion of the transaction - which was announced on 17 July, 2017 - follows receipt of all the required regulatory approvals and Spirit Energy now becomes a leading independent European E&P company.

Centrica plc owns 69% of Spirit Energy, with Bayerngas Norge's former shareholders, led by Stadtwerke München Group (SWM), owning 31%.

2017 production from the combined portfolios is expected to be around 50 million barrels of oil equivalent (mmboe) from 27 producing fields, and total 2016 year end 2P reserves and 2C resources were 625 mmboe. The company employs more than 700 people in the UK, Norway, Netherlands and Denmark.

The formation of Spirit Energy creates a strong and sustainable European E&P business, combining Centrica's cash-generative and relatively near-term production profile with Bayerngas Norge's more recently on-stream producing assets and development portfolio. The new company will be a robust, self-financing entity, and will invest in the range £400-£600 million per annum to deliver sustainable medium-term production of 45-55 mmboe. The transaction is expected to generate £100-£150 million net present value of synergies and the joint venture will have the opportunity to strengthen through further consolidation and joint ventures.

For Centrica, the creation of Spirit Energy completes the first phase of its planned portfolio transformation, as it continues to pursue delivery of longer-term returns and growth with a greater focus on its customer-facing businesses within clear strategic frameworks for both Consumer and Business divisions. The establishment of Spirit Energy also gives its shareholders greater strategic optionality including the potential to participate in further industry consolidation.

Spirit Energy's focus in 2018 will be to maximise efficiency from its producing assets, as well as progressing several key projects including the developments of Maria and Oda, appraisal drilling at the Fogelberg discovery and drilling on a number of exploration prospects. Spirit Energy will also partner with Wintershall in submitting a plan for development and operation for the Skarfjell development.

Iain Conn, Group Chief Executive of Centrica plc, said:

"I'm delighted that the Spirit Energy joint venture has completed, creating a more focused and sustainable European E&P business which will contribute to the resilience of Centrica while limiting the Group's E&P participation. With the creation of Spirit Energy we have now completed the first phase of our portfolio transformation as we reallocate resources towards our customer-facing businesses, leaving Centrica well-positioned to deliver longer-term returns and growth.

"As one of the largest independent E&P companies in North-West Europe, Spirit Energy will have the possibility to participate in further consolidation and joint ventures, and creates further optionality for Centrica's shareholders."

Florian Bieberbach, Chief Executive of Stadtwerke München Group, said:

"Combining our E&P business units will enable us to run our joint business more effectively and cost efficiently in the future. Future investments and risks will be spread broader in the more diversified and balanced portfolio. SWM Group is looking forward to the future cooperation with Centrica in the joint company Spirit Energy."

Chris Cox, Chief Executive of Spirit Energy, said:

"Teams across both Centrica's E&P business and Bayerngas Norge have been working hard over the last few months to combine the businesses and today that hard work is reflected in the launch of Spirit Energy.

"Now that both businesses have been brought together, these teams and complementary portfolios set us up to be a strong and sustainable E&P business, built for the long-term and committed to Europe."

Chris Cox will be joined on the Spirit Energy management team by Andrew le Poidevin as Chief Financial Officer and Gerry Harrison as Chief of Staff. Spirit Energy's board will be made up of Chris Cox, plus four appointees from Centrica and two from Stadtwerke München. It will be chaired by Centrica's Group Executive Director Mark Hanafin.


Ends

Bought in again yesterday

You need to buy yet more George....enough to move the sp, please. ;o)

H when I buy the sp usually moves---------downwards.

Finals 22nd Feb so not long to wait for news

Much higher than normal volume today

Reassuringly consistent!

Deutsche Bank Sell 133.70 125.00 125.00 Reiterates

StockMarketWire.com
Centrica's operating profit fell 17% to £1.25bn in the year to the end of December, weighed by poor performance in its business energy supply units both in the UK and North America.

The firm recorded a £476m post-tax net exceptional charge, relating to impairments of E&P assets and Rough.

Centrica lowered its net debt by 25% to £2.6bn while group revenue was up 3% on the previous year, at £28bn.

EBITDA was down 9% year-on-year and adjusted operating cash flow was down 23%. Adjusted earnings were down 22% to £698m, resulting in adjusted EPS of 12.6p per share.

Centrica Business adjusted operating profit was down by 67% to £161m amid intensifying competition which weighed on unit margins while warmer weather impacted consumption in its energy supply business units in the UK and North America.

The firm's UK business was also impacted by high electricity cost volatility in Q1. While In North America, low gas price volatility resulting from the warmer weather reduced opportunities for gas optimisation which further depressed margins.

The firm is targeting adjusted operating cash flow of £2.1bn to £2.3bn per annum on average and capital reinvestment limited to no more than £1.2bn per annum for the 2018 to 2020 period.

Iain Conn, Group CEO, said: 'Our financial result in the second half of 2017 was weak, primarily reflecting poor performance in Business energy supply and particularly in our North America Business unit.'

'The combination of political and regulatory intervention in the UK energy market, concerns over the loss of energy customers in the UK, and the performance issue in North America have created material uncertainty around Centrica and, although we delivered on our financial targets for the year, this resulted in a very poor shareholder experience.'

Divi being held on reduced EPS, nice to see debt being cut. Market seems to like it, and I'm in the blue for the first time since buying last month