CNA.L - Centrica plc

LSE - LSE Delayed Price. Currency in GBp
88.58
-0.42 (-0.47%)
As of 1:45PM BST. Market open.
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Previous Close 89.00
Open 88.88
Bid 88.58 x 0
Ask 88.62 x 0
Day's Range 88.02 - 89.26
52 Week Range 85.06 - 158.25
Volume 4,032,779
Avg. Volume 24,528,571
Market Cap 5.153B
Beta (3Y Monthly) 0.59
PE Ratio (TTM) 27.68
EPS (TTM) 3.20
Earnings Date Jul 30, 2019
Forward Dividend & Yield 0.12 (13.60%)
Ex-Dividend Date 2019-05-09
1y Target Est 153.87
  • More American LNG Set to Land in Glutted Gas Markets
    Bloomberg 4 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.

  • Bloomberg 8 days ago

    Two Big U.K. Utilities Pledge to Adopt All-Electric Fleets

    (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 jhodges17@bloomberg.netTo contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, Andrew Reierson, Lars PaulssonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Direct Energy Offers Texans Twelve Hours of Free Power and a Hive View Smart Indoor Camera
    PR Newswire 14 days ago

    Direct Energy Offers Texans Twelve Hours of Free Power and a Hive View Smart Indoor Camera

    HOUSTON, July 2, 2019 /PRNewswire/ -- Today Direct Energy announces a new 24-month fixed-price electricity plan that includes 12 hours of free power from 9 pm to 9 am and a Hive View smart indoor camera. "Doing laundry, running the dishwasher and running the air conditioner at night are easy ways for our customers to make an impact on their electric bills with this new plan," said Bruce Stewart, President of Direct Energy Home.

  • How Financially Strong Is Centrica plc (LON:CNA)?
    Simply Wall St. 17 days ago

    How Financially Strong Is Centrica plc (LON:CNA)?

    Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Centrica plc...

  • Centrica plc (LON:CNA): Time For A Financial Health Check
    Simply Wall St. 17 days ago

    Centrica plc (LON:CNA): Time For A Financial Health Check

    Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Centrica...

  • Based On Its ROE, Is Centrica plc (LON:CNA) A High Quality Stock?
    Simply Wall St. last month

    Based On Its ROE, Is Centrica plc (LON:CNA) A High Quality Stock?

    Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...

  • Reuters 2 months ago

    IBM, Cera Care to test self-driving car tech in elder homes

    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.

  • Reuters 2 months ago

    Investors slap discount on UK utilities amid election worries

    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.

  • Could Centrica plc's (LON:CNA) Investor Composition Influence The Stock Price?
    Simply Wall St. 2 months ago

    Could Centrica plc's (LON:CNA) Investor Composition Influence The Stock Price?

    Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift...

  • Reuters 2 months ago

    Innogy's retail woes continue as first-quarter profit drops a third

    German energy group Innogy, which is being broken up by parent RWE and rival E.ON, on Tuesday said operating profit fell more than a fifth in the first quarter as it continued to lose customers in Britain. "In the company's UK retail business ... the persistently poor market environment resulted in a decline in customer numbers," Innogy said on Tuesday, keeping its 2019 outlook. In Britain, Innogy lost 103,000 customers in the first three months.

  • Reuters 2 months ago

    FTSE 100 falls as trade dispute escalates, investors disconnect from Vodafone

    The FTSE 100 ended down 0.6% while the FTSE 250 tumbled 1.2% on Monday, led by a slump in Metro Bank. The breakdown last week has not proved temporary and it seems China is prepared to go toe-to-toe with the U.S. on this," markets.com analyst Neil Wilson said. Vodafone tumbled 5.2% on its worst day in nearly five years after The Times reported that the world's second-biggest mobile operator was set to slash dividends to pay for auctions for mobile phone airwaves in Germany and Italy.

  • Reuters 2 months ago

    FTSE rises slightly thanks to mining stocks

    By Muvija M and Shashwat Awasthi (Reuters) - UK blue-chip stocks rose slightly on Friday, recouping the session's losses as mining stocks gave investors something to cheer about at the end of a largely ...

  • Reuters 2 months ago

    British retail energy woes weigh on E.ON, Centrica

    FRANKFURT/LONDON (Reuters) - E.ON and Centrica, two of Britain's so-called "big six" energy providers, warned on Monday of a toughening retail market, raising the chance of cost cuts in response to falling profits. Britain's major energy utilities have faced competition from small, more flexible rivals entering the fray while the government has put a cap on electricity prices, causing several companies to cut their earnings outlooks. "We will have to talk to the regulator," E.ON finance chief Marc Spieker told journalists on Monday after reporting first-quarter results and flagging cost cuts at its British unit, where profits fell by 60 percent.

  • Reuters 2 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.

  • CNBC 2 months ago

    Europe shares extend losses after China announces tariff hikes on US goods; German DAX down 1.5%

    Markets in Europe continued to fall during the Monday afternoon session, after news China will impose tariffs on some U.S. imports from June 1.

  • Reuters 2 months ago

    BP-backed UK energy supplier Pure Planet cuts prices 2.4 percent

    British energy supplier Pure Planet, in which oil giant BP has a 25 percent stake, has cut its average annual dual gas and electricity price by 2.4 percent, it said on Wednesday. The cut is the company's second price drop this year and comes after all of the country's 'big six' suppliers raised their average prices around 10 percent in April in line with an increase in the energy regulator's price cap.

  • Direct Energy Completes Sale of Franchise Home Services Business, Clockwork, Inc
    PR Newswire 2 months ago

    Direct Energy Completes Sale of Franchise Home Services Business, Clockwork, Inc

    HOUSTON , May 1, 2019 /PRNewswire/ -- Yesterday, Direct Energy, one of North America's largest energy and services companies and a subsidiary of Centrica plc, successfully completed the $300 million sale ...

  • Reuters 3 months ago

    Sustained low British gas prices point to price cap reduction

    The steady decline of British wholesale gas prices shows no sign of reversing this summer, which should provide some relief to households when it is reflected in a lower price cap on energy tariffs this autumn. A cap on default electricity and gas bills - a flagship policy of British Prime Minister Theresa May to end what she called "rip-off" prices - came into force in January to set a maximum price suppliers can charge consumers on certain tariffs. Energy market regulator Ofgem said it would remove around 1 billion pounds of overcharging from consumer bills by forcing suppliers to limit the price of their default tariffs to the level of the cap, or below.

  • Is Centrica plc (LON:CNA) Excessively Paying Its CEO?
    Simply Wall St. 3 months ago

    Is Centrica plc (LON:CNA) Excessively Paying Its CEO?

    In 2015 Iain Conn was appointed CEO of Centrica plc (LON:CNA). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business...

  • More British energy customers switch supplier in first-quarter despite price cap
    Reuters 3 months ago

    More British energy customers switch supplier in first-quarter despite price cap

    The number of British customers switching energy supplier in the first quarter of 2019 rose by 12 percent compared with the same period last year, data from industry group Energy UK showed, despite a government price cap which began in January. Energy regulator Ofgem was told by parliament last year to set the price limit after lawmakers said customers on the most commonly used standard tariffs were being overcharged for electricity and gas. Prime Minister Theresa May had called the tariffs a "rip-off".