|Bid||88.90 x 0|
|Ask||88.94 x 0|
|Day's range||87.86 - 90.00|
|52-week range||85.06 - 156.65|
|Beta (3Y monthly)||0.59|
|PE ratio (TTM)||27.78|
|Earnings date||30 Jul 2019|
|Forward dividend & yield||0.12 (13.29%)|
|1y target est||153.87|
Today we will run through one way of estimating the intrinsic value of Centrica plc (LON:CNA) by taking the expected...
Centrica plc (LON: CNA) has been able to maintain dividends in recent years, but can it continue to do so? Royston Wild thinks the answer is a resounding 'no'!
Don't be fooled -- I think these FTSE 100 (LON:INDEXFTSE:UKX) dividend stocks aren't all they're cracked up to be.
(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 firstname.lastname@example.orgTo contact the editors responsible for this story: Reed Landberg at email@example.com, Rob VerdonckFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Two of Britain’s six biggest utilities pledged to switch their entire vehicle fleet to run on electricity by 2030, adding momentum to the shift away from traditional engine technology.Centrica Plc operates the third-biggest company owned fleet in the U.K., with 12,500 cars and vans. SSE Plc has 3,500 vehicles and also said it will install charging points for its employees to use, according to a statement released by the two through the The Climate Group, a a non-profit group working with businesses to accelerate climate action.The targets follow a cross-party effort backed by the government setting a goal to reduce net fossil-fuel emissions to zero by 2050. Energy companies led by utilities have been at the forefront of efforts to shift toward renewables, and utilities are anticipating profitable opportunities in developing electric cars and the networks that support them.“Decarbonization is at the heart of what we do, and low carbon emissions from transport is critical if the U.K. is to meet its net zero targets,” said Brian McLaren, SSE’s director of group change.SSE said it has invested $15.4 million on energy efficiency measures in its buildings and depots which have seen energy use at SSE’s data center sites drop by 22% since 2016.Facilities services provider Mitie Group Plc also pledged to transition its 5,300 vehicles to electric including a commitment to switch two thirds of the fleet by the end of next year and install 800 new charging points. The firm said that its vehicles are responsible for 93% of its carbon footprint.“We want to ensure our sizable fleet is as green and sustainable as possible,” said Simon King, Mitie’s fleet and procurement director. “It is challenging, but we all need to take responsibility for actions and commit to change.”(An earlier version of this story corrected the size of Centrica’s fleet.)(Updates with Mitie comment in final paragraph.)To contact the reporter on this story: Jeremy Hodges in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Reed Landberg at email@example.com, Andrew Reierson, Lars PaulssonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
This share has been a loser for a number of years now, but Andy Ross looks at whether there could be green shoots of recovery.
G A Chester sees a contrarian case for buying into British Gas owner Centrica plc (LON:CNA) and a FTSE 250 turnaround prospect.
Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Centrica...
It doesn't look as if the outlook for Centrica plc (LON: CNA) is going to improve any time soon says Rupert Hargreaves.
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.
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.
Spanish utility Iberdrola will this week launch an Irish retail business and plans to invest over 100 million euros ($112 million) in renewable energy and storage projects in Ireland and Northern Ireland by 2025, it said on Tuesday. "We have had renewable generation in Ireland for over 20 years so moving into retail is a logical step," Colin McNeill, CEO retail Iberdrola Ireland and Iberdrola's UK arm ScottishPower said in an interview.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
Hurricane Energy has announced first oil at its Lancaster field off Scotland, the first such success for so-called fractured basement reservoirs in Britain and a major milestone for the company within its guided schedule. Hurricane specialises in recovering oil from fractures in hard and brittle rock known as fractured basement reservoirs, which some see as a risky way to obtain crude. "Lancaster is the UK's first producing fractured basement field and the fact that Hurricane has delivered this industry milestone on time and within budget is an incredible achievement," said Robert Trice, Hurricane chief executive.
Harvey Jones says the price may finally look right for energy giant Centrica plc (LON: CNA), but it's still risky.
The outlook for these FTSE 100 (INDEXFTSE:UKX) companies is deteriorating rapidly and Rupert Hargreaves would sell before it's too late.
With FTSE 100 (INDEXFTSE: UKX) dividend yields starting to soften, is it time to snap up Centrica plc (LON: CNA) shares before it's too late?
IBM and British start-up Cera Care plan a six-month pilot to test whether lidar laser sensors, used to help self-driving cars "see", can enable elderly people to stay in their homes for longer - without compromising privacy. Lidar systems that work by using laser light pulses to render fine-grained images of surroundings, have typically been used to make high-resolution maps, catch speeding motorists and more recently help automated cars navigate through the streets. Jack Narcotta, a senior smart home analyst at Strategy Analytics, said lidar lasers were one of the more advanced solutions for elderly monitoring, but were still in the very early stages.
British utility stocks are trading at a growing discount to euro zone peers as investors fear the country's deepening political crisis could trigger a general election that ushers in renationalisation of the industry, worth $76 billion (£59.9 billion). The opposition Labour Party has said it wants to nationalise energy and water infrastructure if it can oust Prime Minister Theresa May's Conservatives from power, reversing decades of pro-privatisation policies. Simon Webber, lead portfolio manager on the global and international equities team at Schroders said those fears were "another overhang" for utilities, already subject to a discount like other UK assets because of Brexit uncertainty.