CENB.F - Centrica plc

Frankfurt - Frankfurt Delayed price. Currency in EUR
1.0285
+0.0175 (+1.73%)
As of 10:08AM CEST. Market open.
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Previous close1.0110
Open0.9938
Bid0.9994 x 500000
Ask1.0250 x 500000
Day's range0.9938 - 1.0305
52-week range0.9494 - 1.8055
Volume2,950
Avg. volume4,810
Market cap6.006B
Beta (3Y monthly)0.03
PE ratio (TTM)8.29
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yield0.13 (13.80%)
Ex-dividend date2019-05-09
1y target estN/A
  • More American LNG Set to Land in Glutted Gas Markets
    Bloomberg7 days ago

    More American LNG Set to Land in Glutted Gas Markets

    (Bloomberg) -- Six decades after British Gas imported the world’s first seagoing cargo of liquefied natural gas from the U.S., the company’s successor is preparing to repeat the act, but with a whole different set of challenges.A global glut of LNG on the back of new production facilities has caused prices to crash globally, a move most people hadn’t anticipated in 2013, when Centrica Plc signed a 20-year contract to buy LNG from Cheniere Energy Inc. With the price gap between the regions shrinking more than 70% since then, it has become challenging to economically bring U.S. fuel to Britain when the Windsor, England-based utility takes its first contractual delivery from the Sabine Pass plant in Louisiana in September.“Right now we anticipate lifting the cargoes,” Jonathan Westby, co-managing director of Centrica’s energy marketing and trading unit, said in an interview at his office in west London, a hub for LNG trading. “While the spot market is looking particularly oversupplied right now, we have been undertaking a big risk management program and therefore have managed the front end of the Sabine Pass contract quite considerably,” Westby said.Utilities, trading houses and oil majors have been lured by LNG as buyers from China to Pakistan seek cleaner fuels. As increasing global supply and flexible contracts help make LNG the fastest-growing fossil fuel, market players are searching for niches and navigating challenges such as where to place cargoes and how to manage price risks.Since trading its first spot cargo in 2014, Centrica has transformed from a regional buyer importing cargoes to a terminal near London into a global player, targeting 5 million to 6 million tons of LNG next year. That’s more than half of what some of the largest commodity trading houses deliver annually. Centrica has built a diverse portfolio of long-term contracts with major producers and found demand from its European hub to the Middle East to Asia to the Caribbean region.Centrica’s Long-Term LNG ContractsSigning up to buy volumes from Cheniere, which revolutionized the U.S. energy landscape by becoming the first exporter of American shale gas in the form of LNG, was a major milestone to kickstart Centrica’s LNG business. Centrica will be buying from the fifth unit of Sabine Pass, which started commercial operations earlier this year, and will need to pay fixed fees. It has the right not to lift cargoes, but would need to notify the seller in advance to do so.Under the terms of the agreement, Centrica will pay Cheniere a fixed fee of $3 per million British thermal units and a commodity fee of 115% of the prevailing Henry Hub price, for the procurement and liquefaction of the gas.While U.S. supply is abundant, rapidly expanding, relatively cheap and unrestricted by traditional limitations such as destination clauses, it exposes European buyers to a price index that is different to the ones they use to trade at home. The Cheniere contract is based on U.S. benchmark Henry Hub, needed to raise financing to build American plants.“One of the big issues facing the industry is how to manage price risk and volume risk in long-term contracts because it costs a lot of money to develop LNG liquefaction,” Westby said. “Market participants would find it a lot easier if the financial markets provided the ability to hedge for 10 years out, they currently don’t.”By using the paper markets and securing physical deals, Centrica expects to maintain profitability. The U.S. contract’s flexibility along with multiple other deals in place creates optimization opportunities which can be monetized to offset the cost of buying the gas in the first place, he said.“You have to be quite creative in terms of how you can effectively risk manage that through doing physical activity and creating physical homes for the cargoes,” Westby said. “We have entered some mid-term contracts and we will be selling the cargoes into multiple destinations.”One such contract was a deal with Poland’s PGNiG, which is committing to U.S. LNG as the eastern European nation is moving to free itself from buying pipeline gas from Russia’s Gazprom PJSC, Europe’s dominant gas supplier.In February, Centrica signed an innovative contract to buy the fuel from the Mozambique LNG project jointly with Tokyo Gas, with which it also has a separate deal to swap cargoes. Centrica also teamed up with New Fortress Energy, which converted a number of oil markets in Jamaica into gas customers, providing the utility with a market for its LNG.“With the Polish deal, with the Caribbean deal, and obviously our partnership with Tokyo Gas, we feel that we can add more value by working collaboratively with other companies that have complementary positions,” Westby said. “That is how we achieved a lot of our growth, is through this kind of collaboration.”In the currently oversupplied market, Centrica isn’t shocked by lower prices. Traders watch spreads between regions, such as Asia and Europe, as well as price gaps in time to explore opportunities for floating storage and diversions, rather than an absolute price level, Westby said.But even the best modelling can be upset because of unpredictable weather and unplanned outages at plants, he said. Also, lower LNG prices open up demand, and once nations switch to cleaner gas, that usage becomes permanent.“The markets are probably looser now than they have been in the past,” Westby said. “That presents some challenges in terms of securing markets for product. Looser markets typically create liquidity -- it is easier to trade and enter transactions. That will be something we will be looking to take advantage of.”(Updates with Centrica’s fee in seventh paragraph.)To contact the reporter on this story: Anna Shiryaevskaya in London at ashiryaevska@bloomberg.netTo contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, Rob VerdonckFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Centrica to cut 700 jobs amid 'growing challenges'
    Sky Newslast month

    Centrica to cut 700 jobs amid 'growing challenges'

    Centrica originally announced last year that it would shed 4,000 jobs by 2020 , following a big fall in operating profits. The company said on Wednesday that the roles potentially affected were "non-customer facing" and the proposals included a reduction in management layers and back office functions. A Centrica spokesman said: "This difficult decision was made because we need to respond to the growing challenges we face.

  • British Gas owner Centrica plans 700 job cuts
    Sky Newslast month

    British Gas owner Centrica plans 700 job cuts

    Centrica originally announced last year that it would shed 4,000 jobs by 2020 , following a big fall in operating profits. Around 65% of the savings would be in operating costs and around £350m will be in the British Gas consumer division, which will see "further digitisation", the company said at the time. The company said on Wednedsay that the roles potentially affected were "non-customer facing" and the proposals included a reduction in management layers and back office functions.

  • British Gas owner faces renewed pressure after customer exodus
    Sky News2 months ago

    British Gas owner faces renewed pressure after customer exodus

    British Gas owner Centrica has revealed a fresh customer exodus at the start of the year and warned that a "challenging trading environment" will put further pressure on its annual performance. The FTSE 100 company said it lost 234,000 UK home energy supply accounts in the first four months of 2019, partly blamed on changes to the government's energy price cap. Centrica said in a trading update that its performance was hit by a "specific set of external factors" including the price cap as well as warmer than usual weather and falling UK natural gas prices.

  • Reuters - UK Focus2 months ago

    Oil giants lift FTSE 100, trade uncertainty lingers

    Britain's FTSE 100 edged up on Monday, led by oil heavyweights and as investors flocked to defensive stocks on concern over the stand-off in Sino-U.S. trade negotiations. The FTSE 100 was up 0.1% by 0720 GMT while the FTSE 250 was down 0.5%. Interest in stocks considered safe bets during uncertain times was high as trade negotiations between Washington and Beijing seemed to be at a deadlock.

  • Reuters2 months ago

    British Gas owner Centrica expects tough first half trading conditions

    The company, whose British Gas unit is Britain's largest energy supplier, said these factors would impact financial performance in the first half of 2019, but maintained its full-year outlook for operating cash flow and net debt. The company said it expects to achieve 2019 adjusted operating cash flow in the 1.8-2 billion pound range but said the tough trading conditions would put pressure on the outlook for the year.

  • Reuters - UK Focus2 months ago

    British Gas owner Centrica expects tough H1 trading conditions

    Britain's largest energy supplier Centrica Plc faces a challenging trading environment in the first half of the year due to a national cap on energy prices, warmer-than-normal weather and weak UK natural gas prices, it said on Monday. The company, whose British Gas unit is Britain's largest energy supplier, said these factors would impact financial performance in the first half of 2019, but maintained its full-year outlook for operating cash flow and net debt.

  • Reuters - UK Focus2 months ago

    BUZZ-Centrica: HSBC cuts to "reduce" on earnings and dividend risks

    ** HSBC downgrades Britain's largest energy supplier Centrica to "reduce" from "hold" on earnings and dividend risks ** "We believe that there may be pressure on earnings from ...

  • Reuters - UK Focus2 months ago

    Ex-divs to take 8.8 points off FTSE 100 on May 9

    The following FTSE 100 companies will go ex-dividend on Thursday, after which investors will no longer qualify for the latest dividend payout. According to Reuters calculations at current market prices, ...

  • Boss of British Gas owner gets 44% pay rise to £2.42m
    Sky News3 months ago

    Boss of British Gas owner gets 44% pay rise to £2.42m

    British Gas owner Centrica has revealed boss Iain Conn received a 44% pay rise to £2.42m last year, days after a bill hike for millions of customers came into effect. Mr Conn's package was up from £1.68m the year before when he missed out on bonuses amid disappointing financial results. British Gas increased standard tariffs by 10% to an average £1,254 at the start of this month, affecting four million customers - in line with regulator Ofgem's energy price cap.

  • Centrica chief executive's pay climbs 44% to £2.42m
    Sky News3 months ago

    Centrica chief executive's pay climbs 44% to £2.42m

    British Gas owner Centrica has revealed boss Iain Conn received a 44% pay hike to £2.42m last year, days after a bill hike for millions of customers came into effect. Mr Conn's package was up from £1.68m the year before when he missed out on bonuses amid disappointing financial results. British Gas increased standard tariffs by 10% to an average £1,254 at the start of this month, affecting four million customers - in line with regulator Ofgem's energy price cap.

  • FTSE 100 drops after disappointing Centrica, BAE reports
    Reuters5 months ago

    FTSE 100 drops after disappointing Centrica, BAE reports

    (Reuters) - British blue-chip shares fell on Thursday after downbeat reports from energy supplier Centrica and defence company BAE Systems, while a stronger pound weighed on multinational healthcare and ...

  • Reuters5 months ago

    Poor results drag European shares down from four-month highs

    MILAN/LONDON (Reuters) - European shares dipped on Thursday, weighed down by several weak earnings updates and after data showed that euro zone factory output unexpectedly fell last month. Euro zone factory output slammed into reverse last month as activity in Germany declined again amid trade tensions and struggles in the auto sector, surveys showed. "There is still widespread concern about how well the economy in Europe has been performing in recent months," said Michael Hewson, chief market analyst at CMC Markets.

  • Centrica: British Gas owner's shares plunge after price cap warning
    Sky News5 months ago

    Centrica: British Gas owner's shares plunge after price cap warning

    Shares (Berlin: DI6.BE - news) in British Gas owner Centrica (Frankfurt: A0DK6K - news) have fallen sharply after it warned 2019 financial performance would be hit by factors including the energy price cap. The FTSE 100-listed group was down 12% after it also revealed that it had shed 742,000 UK customer accounts last year in a "highly competitive" market. Centrica said profits at its UK home energy supply division were down by 19% to £466m for 2018, though the overall group's headline measure of adjusted operating profit was up 12% to £1.39bn.

  • Reuters - UK Focus5 months ago

    LIVE MARKETS-Just say no: The Powell put is a puff

    * European shares dip under 4-month highs * U.S., China sketch outlines of trade deal -sources * Centrica, Maersk down after results; Barclays up * Trump threatens tariffs on European cars Feb 21 - Welcome ...

  • Reuters - UK Focus5 months ago

    LIVE MARKETS-Small is still beautiful in European stocks (but choose carefully)

    * European shares dip under 4-month highs * U.S., China sketch outlines of trade deal -sources * Centrica, Maersk down after results; Barclays up * Trump threatens tariffs on European cars Feb 21 - Welcome ...

  • Reuters5 months ago

    Centrica shares hit 16-year low after warning of price cap impact

    Shares in British Gas parent Centrica slumped to a 16-year low on Thursday after the group warned a national price cap on energy bills, a fall in nuclear output and lower volumes at its oil and gas division would hit its 2019 results. Centrica said a regulator-imposed cap on standard energy prices would lead to a £300 million hit to profits in 2019, including a one-off impact of about £70 million in the first quarter of 2019. Late last year Centrica, whose British Gas unit is Britain's largest energy supplier, said it would seek a judicial review of the way regulator Ofgem calculated part of the price cap, which was initially set around 6 percent lower than British Gas's standard variable tariff.

  • Reuters - UK Focus5 months ago

    LIVE MARKETS-From euroboom to eurogloom, are expectations too pessimistic?

    * European shares dip below 4-month highs * US, China sketch outlines of trade deal -sources * Centrica, Maersk down after results; Barlcays up * Trump threatens tariffs on European cars Feb 21 - Welcome ...

  • Reuters - UK Focus5 months ago

    UK's Centrica shares hit 16-year low after warning of price cap impact

    Shares in British Gas parent Centrica (Frankfurt: A0DK6K - news) slumped to a 16-year low on Thursday after the group warned a national price cap on energy bills, a fall in nuclear output and lower volumes at its oil and gas division would hit its 2019 results. Centrica said a regulator-imposed cap on standard energy prices would lead to a 300 million pound ($392 million) hit to profits in 2019, including a one-off impact of about 70 million in the first quarter of 2019. Late last year Centrica, whose British Gas unit is Britain's largest energy supplier, said it would seek a judicial review of the way regulator Ofgem calculated part of the price cap, which was initially set around 6 percent lower than British Gas's standard variable tariff.

  • Reuters - UK Focus5 months ago

    EU regulators to probe UK power capacity scheme after court veto

    EU state aid regulators opened on Friday an in-depth investigation into Britain's capacity market scheme, three months after an EU court scrapped its 2014 decision approving the project. The Luxembourg-based ...

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