centrica plc-sp adr (CPYYY) Key Developments
Investors Reportedly Eye Centrica
Jun 6 14
Investors reportedly eye Centrica plc (LSE:CNA). Some very nosey buyers have been switching on to Centrica in recent days amid growing speculation that a cash-rich international buyer is looking to buy a sizeable stake, prior to launching a full-scale cash bid. The shares retrieved an early fall to finish 0.8% better at 330.5 pence on June 5, 2014 due to gossip that the Qataris have approached Centrica's shareholders with an offer to buy big lines of stock at up to £4-plus a share.
Qatar Rumored To Be Eyeing Centrica Assets
Jun 6 14
Qatar is said to be eyeing power plants from Centrica plc (LSE:CNA). Qatar is in talks with Centrica over investing in UK power plants. According to the news report, Mohammed bin Saleh Al–Sada, Qatar's Energy Minister, and Sam Laidlaw, Centrica’s Chief Executive, both declined to comment on rumors. Saleh Al–Sada said that Qatar was ‘discussing some projects’ in the UK energy sector with Centrica, citing ‘a lot of common interest and values between the two companies’. The minister assed, “We invested together in Canada and we are still discussing other potential investment. We are capitalising on the success and positive commonalities between the two and we were just talking about a few areas of future cooperation.” Mark Hanafin, Head of upstream for Centrica, said, “Nebras was looking with Centrica at the UK's need for more gas–fired power plants and "whether there is potential there because we know how to consent plants, we know how to build them and we know how to run them". He added: "There is a natural conversation to have.” Nebras is a firm created by Qatar Investment Authority and Qatar Electricity & Water Company Q.S.C (DSM:QEWS). Centrica’s shares rose 1.5% on the takeover rumors.
Centrica plc Announces the resignation of Chris Weston, Director and Managing Director, International Downstream
May 30 14
Centrica plc announced that Chris Weston, Director and Managing Director, International Downstream has tendered his resignation in order to become CEO of Aggreko plc. Chris is subject to 12 months' notice and a further announcement will be made in due course regarding the timing of Chris' departure and succession for the leadership of Centrica's International Downstream business.
Centrica Planning To Sell Assets
May 9 14
Centrica plc (LSE:CNA) is planning to sell asset. The Langage power station on the edge of Plymouth and two other plants have been put up for sale by owner Centrica. According to the news report, all three have been given a combined value of £500 million. Subject to receipt of acceptable offers, a portion of the funds from the disposal of the power stations may be recycled back into upgrading smaller plants, Centrica said. A Centrica spokesman said, “As part of a review of our fleet of power stations, we are restructuring our portfolio to focus on our smaller, more flexible stations. As a result we are considering the sale of three of our largest plants, including the Langage power station. We believe Langage will continue to play a key role in keeping the lights on in the UK and we do not anticipate this will lead to any job losses. Changes in ownership can be unsettling but we will be working hard to support our team over the coming weeks and months.”
Centrica plc Reports Interim Management Statement for First Four Months of 2014; Reduces Outlook for Earnings in 2014; Provides Earnings Guidance for 2015
May 8 14
Centrica plc reported interim management statement for first four months of 2014. At the end of March, group net debt stood at £5.2 billion, which includes the impact of the disposal of three CCGTs in Texas, which completed in January. The number of residential accounts on supply has decreased by 180,000 in the year to date, and although the number of customer accounts has stabilised in recent weeks, competition remains fierce, particularly from smaller suppliers who are currently benefiting from an exemption from some environmental obligations. Service levels in British Gas Residential have improved significantly during the year to date, with reduced answering and call handling times, and lower levels of complaints, following an intense period in the final quarter of 2013 which was driven by record levels of switching. With warmer than normal temperatures in the year to date in the UK, compared to a cold start to 2013, average residential gas and electricity consumption for the first four months of 2014 was 25% and 10% lower respectively than for the same period last year. Overall, residential customers’ average energy bills were 10% lower this winter than last. The company now sold over 80,000 smart thermostat products in the UK, with the weekly sales of its innovative Hive product having increased over the course of the year. The company continue to lead the industry in the roll-out of smart meters, and has installed over 950,000 for residential homes to date. Over 300,000 smart meter customers now receive itsunique Smart Energy Report, providing them with detailed information on their energy usage and advice on how to improve their energy efficiency.
The company reduced outlook for earnings in 2014. When taking into account lower levels of consumption in the year to date, the company expects full year 2014 residential energy supply revenue to be around 10% below 2013 levels and the post-tax margin to be around 4%. This is lower than last year and below its consistent expectation of long-term post-tax margins in the range 4.5%-5%, which it believes it is necessary to underpin investment in the business. As a result, with additional costs associated with the exceptionally cold weather in the US, offset by a lower depreciation charge on its UK gas-fired power generation fleet, the company expects 2014 full year adjusted earnings per share for the group to be in the range 22-23 pence per share.
The company provided earnings guidance for 2015. Looking ahead to 2015, while the outlook for gas prices is currently benign, there is upward pressure on the market cost of power, including an increase in network charges, and higher costs associated with renewable energy (renewable obligation certificates, feed in tariffs and the carbon price floor). Overall, assuming similar or higher levels of operating profit for British Gas Residential in 2015 compared to 2014, and with underlying growth and normal weather conditions in North America and the prospect for improvements in UK gas storage, British Gas Services and British Gas Business, the company expects the group to return to earnings growth in 2015, subject to the usual variables of commodity prices, weather and asset performance.
With warmer than normal temperatures in the year to date in the UK, compared to a cold start to 2013, average residential gas and electricity consumption for the first four months of 2014 was 25% and 10% lower respectively than for the same period last year. Overall, our residential customers’ average energy bills were 10% lower this winter than last.