|Bid||39.52 x 0|
|Ask||39.60 x 0|
|Day's range||38.14 - 43.38|
|52-week range||35.01 - 116.25|
|Beta (5Y monthly)||0.59|
|PE ratio (TTM)||N/A|
|Earnings date||13 Feb 2020|
|Forward dividend & yield||0.05 (11.37%)|
|Ex-dividend date||07 May 2020|
|1y target est||153.87|
(Bloomberg) -- The outlook for Europe’s utilities and power generators is worsening as the coronavirus curbs energy demand and prices plunge.Utilities from Centrica Plc to EON SE are being hit on several fronts from lower consumption to customers not paying their bills, which may lead to earning downgrades. Analysts have also started to cut power price forecasts, indicating bleaker prospects for producers including Electricite de France SA and RWE AG.“European utilities face consensus earnings downgrades amid lower demand and prices for energy and environmental services as disruptions from the Covid-19 pandemic progress,” said Elchin Mammadov, analyst at Bloomberg Intelligence. He picked out Centrica and EON as being particularly at risk.Many of the companies were in a bind even before the virus hit. A glut in natural gas has driven prices down to their lowest in a decade, sending power down too. EDF, Europe’s biggest nuclear operator, said on Monday its profit forecast and nuclear output target could be revised down this year.While Centrica declined to comment, EON on Wednesday said the pandemic would squeeze its profitability this year, adding it was too early to gauge the size of the impact. The company expects lockdowns in the countries in which it operates will continue to curb electricity demand and hamper sales as people stay away from workplaces. It also expects the completion of infrastructure projects such as those to build electric car charging apparatus won’t be completed on time.“Industrial and commercial customers are consuming noticeably less energy,” Chief Executive Officer Johannes Teyssen said on an earnings call.Sanford C Bernstein & Co. said earnings at Centrica, RWE, Uniper SE, Naturgy Energy Group SA and Engie SA could be 7% to 21% lower in their base case. That could increase to 20% to 50% in a scenario based on “very low power prices.”The threat of a drop in profits from lower energy prices and a potential global recession could potentially have an impact beyond first half earnings. The 29-member STOXX Europe 600 Utilities Index has dropped 22% since the start of February, compared with a 26% drop in the main STOXX 600 Index.Plunging PowerAnalysts at Joh Berenberg Gossler & Co. cut its 2020 European price forecast by 11%, in part due to an expected 5% drop in industrial power demand from Covid-19. Italy, Spain, Germany, France and the U.K. have all experienced or are expecting a slide in consumption as offices and schools shut and people stay at home. If more factories shut too, the impact will be even worse.RWE said that so far it is very difficult to forecast how a prolonged slump in demand would impact operations at its plants, which range from nuclear to coal, natural gas and wind. Most of its output is still from fossil fuels, which is behind renewables in priority for supplying the grid.The company is “doing all we can to maintain power production in our plants and thus contribute to security of supply,” RWE said. “We expect an impact on electricity demand given the current economic development and shut down of industrial activity. However, this should be temporary and bounce back once we have come through the crisis.”If the drops in demand continue, or are sustained or increased, weekday power demand would most likely fall to Sunday levels –- a reduction of as much as 26%, depending on the country, according to BloombergNEF. This could translate into a big drop in power prices too.“We expect power demand to decline by 5%-7% this year on 2019 and power prices to be down 20% in 2021 from our previous assumptions,” said S&P Global Ratings credit analyst Pierre Georges. This will affect earnings on generation and supply activities, he said.RBC Europe Ltd. is keeping an eye on its power-price forecasts but haven’t made any adjustment yet because most generators have hedged their positions for this year. If lockdown measures continue after the summer the impact could be long term, the company said.Benchmark year-ahead power in Germany has dropped 14% since the start of last month to the lowest in almost two years and a long-term decline will impact earnings. RBC estimated that price swings impact about 20% of Ebitda in Europe’s utility sector.While industries including transportation takes an immediate hit as people stop traveling, it takes government measures shutting down schools and offices to impact power and natural gas consumption. The coming weeks will be key in determining whether the impacts of the virus are short-term or longer-term, according to one veteran Swiss trader.Demand “could potentially dissipate in a few weeks or months. What we have yet to see is whether these disruptions are large enough to push the world into a more meaningful recession,” said Domenico De Luca, Head of trading and sales at Axpo Holding AG. “If so, energy demand could remain subdued.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The British government has agreed emergency measures with the energy industry to ensure vulnerable households remain supplied with power during the disruption caused by the novel coronavirus, it said on Thursday. Disconnection of credit meters will be completely suspended, while energy customers in financial distress can also ask their suppliers for debt repayments and bill payments to be reassessed, reduced or paused, the government said. The agreement has been signed by all UK domestic energy suppliers and will come into force immediately.
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Conn, who announced last July that he planned to quit, had been under pressure from shareholders because of the company's poor performance. O'Shea, Conn's immediate replacement, was appointed Chief Financial Officer in 2018, and will continue as interim CEO until a permanent one is identified. The company also said Chairman Charles Berry will be replaced by Scott Wheway, with Berry's decision to leave coming after advice from doctors to reduce his workload.
Thursday is arguably the day the impact became tangible, as a slew of UK companies warned coronavirus was hurting their business.
British utility Centrica has agreed a three-year partnership with Volkswagen to provide home-charging hardware for new electric vehicle owners, it said on Wednesday. The deal will see Elli, the main provider of charging hardware and services for Volkswagen Group, work with Centrica's British Gas to deliver a package of home-charging installations, after-sales services and electrical upgrades across Britain. This will help customers to switch to electric vehicles, initially across the Volkswagen, SEAT, SKODA and Volkswagen Commercial Vehicles brands, with plans for Audi to join later this year, Centrica said.
The Centrica share price has plunged over the past 12 months, but is this an opportunity, or is the stock a value trap? The post Is Centrica the FTSE 100 bargain of the year? appeared first on The Motley Fool UK.
Britain's Centrica chartered a vessel to supply liquefied natural gas (LNG) this month to power firm Centrais Elétricas de Sergipe S.A. (CELSE) , launching Brazil's first private LNG terminal. Brazil has been implementing reforms to end the monopoly of Petroleo Brasileiro SA, known as Petrobras, in supplying natural gas to the domestic market. The new terminal was developed before the reforms were announced last year.
Roland Head looks at the Glencore and Centrica share prices and explains which one he'd buy today.The post These FTSE 100 dividend stocks yield 6%. Here's what I'd buy appeared first on The Motley Fool UK.
Centrica (LON: CNA) shares are still offering a 6.6% dividend yield. Should you buy while the share price is down?The post 3 things I think are depressing the Centrica (CNA) share price in 2020 appeared first on The Motley Fool UK.
Lower commodity prices may be hitting the owner of British Gas, but could this be an opportunity to buy Centrica shares cheaply?The post Is the Centrica share price now a bargain? appeared first on The Motley Fool UK.
Will the Centrica share price keep falling, or is this finally the bottom?The post The Centrica share price is down 50% in a year. Here's what I'd do now appeared first on The Motley Fool UK.
Could Footsie-listed income stocks Shell, BP and Centrica continue to crumble in value? Royston Wild explains why the answer might be yes.The post 3 FTSE 100 dividend stocks (including Centrica) I think could sink in 2020 appeared first on The Motley Fool UK.
NEW YORK/LONDON, Feb 13 (Reuters) - The dollar rose and global equity markets slumped on Thursday after a new methodology that boosted the coronavirus death toll in China unnerved investors, curbing a rally that had lifted U.S. and European stocks to a series of record peaks. Chinese officials said 242 people died in Hubei province on Wednesday, the biggest daily rise since the virus emerged in the provincial capital of Wuhan in December. The jump in reported cases halted a rally that lifted Wall Street's three main gauges, indexes for pan-regional European shares, Germany's DAX and Canada's S&P/TSX index.
British Gas owner Centrica plc (LON:CNA) tanks yet again and there could be worse to come.The post Here's why the Centrica share price plunged another 17% today appeared first on The Motley Fool UK.
* FTSE 100 down 1.4% dragged down by oil stocks, Centrica Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (firstname.lastname@example.org), Joice Alves (email@example.com), Julien Ponthus (firstname.lastname@example.org) in London and Danilo Masoni (email@example.com) in Milan. The euro has hit a significant milestone this week falling against the dollar to a May 2017 low, with the move inevitably raising the question of what could this mean for European companies' earnings outlook.
* FTSE 100 down 1.5% dragged down by oil stocks, Centrica Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters. You can share your thoughts with Thyagaraju Adinarayan (firstname.lastname@example.org), Joice Alves (email@example.com), Julien Ponthus (firstname.lastname@example.org) in London and Danilo Masoni (email@example.com) in Milan.
A daily overview of the top business, market and economic stories you should be watching today in the UK and abroad.
You can share your thoughts with Thyagaraju Adinarayan (firstname.lastname@example.org), Joice Alves (email@example.com), Julien Ponthus (firstname.lastname@example.org) in London and Danilo Masoni (email@example.com) in Milan. European shares are down about 0.4%, so just off yesterday's record highs as an earnings galore triggered lot of action at the open.
Profits at British utility Centrica slumped 35% last year, hit by a government price cap on some energy bills and the impact of lower natural gas prices on its production business, sending its shares down as much as 17% on Thursday. The company, whose British Gas unit is Britain’s largest energy supplier, said adjusted operating profit fell to 901 million pounds from 1.39 billion pounds in 2018. "2019 operating profit and earnings were materially impacted by a challenging environment, most significantly the implementation of the UK default tariff cap and falling natural gas prices," said chief executive Iain Conn in a statement.