British Energy Share Discussion Threads

[grippa] 29/7/2006 12:18

Certainly the highest close yet, so absolutely a bullish sign!! Lets hope we take out the intraday high of 749 from back in mid april, And then i suppose £8 seems a good place to aim for!!

[gardenboy] 28/7/2006 21:31

true breakout this time ?

[karateboy] 20/7/2006 23:04

With Government selling its shares in BGY there is a risk that institutions may drag the share price down to get it cheaply.

[conart] 16/7/2006 16:39

LONDON (AFX) - The UK government is in the final stages of preparing to sell
a big tranche of British Energy Group PLC, the country's largest producer of
nuclear power, in a move that could raise up to 3 bln stg, according to The
Sunday Times.
The newspaper did not name its source, but said ministers are now poised to
sell up to half the government's stake in an institutional placing.
They are yet to decide the size of the offer, but it is likely to be worth 2
bln to 3 bln stg. The details will be known by this autumn, the article added.
The government controls 65 pct of the 9 bln stg quoted company, which
generates a fifth of Britain's electricity. Five months ago Gordon Brown said he
was considering selling part of the stake after the energy review.
[e-mail]

[karateboy] 08/7/2006 13:19

According to Dailt Telegraph (on Friday) BE is rumoured to be watched by AREVA. In any case next week it is going to be a very interesting time for BE as Government releases its Energy Review. I expect a new high in share price to be set if general market permits.

[grippa] 08/7/2006 01:27

Great close today, hopefully this sets up a push at the previous high of about £7.50

[daithedeath] 07/7/2006 17:35

Good point grippa,connection to grid less of a problem

[grippa] 07/7/2006 14:58

How about building new reactors on present sites?!?!?!

[volsung] 07/7/2006 12:28

Ask yourself would you like a nuclear power plant built anywhere near you. Any potential sites will be dogged for years by public inquiries and protestors.
Cameron will also make big advances through his opposition to nuclear power as a fuel of choice and his support of renewables. He may well get into government with his greenish ideas along with Blair fatigue. Choppy times ahead for BGY investors.

[grippa] 07/7/2006 12:23

Lets hope we can confidently break 700p.

[karateboy] 06/7/2006 23:04

BGY has not decided on divi yet but it is thinking about it . Romour has it that Energy review with recommendation of new Nuclear Power plants should be built to be released within few days...That explaines recent share price upward movements.

[johnpaul1] 05/7/2006 10:36

any idea when the first div is to be paid. this autumn ?

[pc4900074200] 02/7/2006 10:21

htrocka

???????????

pc

[htrocka] 02/7/2006 09:29

bgy to be de-listed

[v6syncro] 20/6/2006 08:04

Very useful - Thanks

[pc4900074200] 19/6/2006 17:24

Warrant Thread, may be of use.



BGYW Expiry date. 14/01/2010

pc

[v6syncro] 19/6/2006 15:35

Newbie to this thread. Can anyone give me an update with regards to the warrants? i.e. do they have to be sold by a certain date? Thanks in advance

[pc4900074200] 18/6/2006 23:12

I see that this was missed?

Scotland on Sunday. 18th June 2006.

British Energy ready to press nuclear button. GUY DIXON

BRITISH Energy boss Bill Coley is expected to give further impetus to the nuclear lobby this week by revealing he is now in a position to invest in a new generation of power stations.

While he is likely to disappoint investors hoping for news of an early reintroduction of dividend payments, he will use the company's financial turnaround to say BE can play a key role in meeting the UK's future energy needs if the government backs nuclear.

Tony Blair recently declared that nuclear power is "back on the agenda with a vengeance" and the results of his energy review are due shortly.

Livingston-based BE, which generates around 20% of the UK's electricity, was narrowly saved from falling into administration in 2003 by a £5bn government rescue package after being hit by falling power prices and high operating costs.

Citigroup, Goldman Sachs and Deutsche Bank last week produced research asking whether BE may use this week's annual results to say it is to bring forward plans to start paying a dividend - pencilled in for after the 2006/7 financial year - on the back of an upturn in the company's fortunes.

Citigroup said: "A key area of interest will be whether BE has changed this stance. However, we think it is unlikely [that the dividend payment will be resumed] until the UK government has sold down some of its economic interest."

Brokers are forecasting EBITDA of between £825m and £894m. The operating EBITDA last year was £94m.

BE operates eight nuclear plants - including Torness in East Lothian and Hunterston B in Ayrshire - and its coal-fired plant at Eggborough in Yorkshire. There has been speculation the Eggborough plant may be split from the rest of the company.

Shares in BE have risen sharply on the back of higher energy prices and, in the longer term, the expectation that the government may give its backing the construction of the next generation of nuclear power stations. Shares which were worth 263p in January 2005 closed on Friday at 669.5p.

This week, analysts will focus on the amount BE receives for selling its electricity. Citigroup expects BE to have forward sold around 75% of its output for the 2006/07 period at an average price of around £45/MWh (mega watt hour). In the third quarter of 2005/6, BE achieved a price of £37.60/MWh. Citigroup said: "We will also be looking to see if BE has secured any further long-term deals."

One legacy of the government's bail-out of BE is a complicated financing system, which results in 65% of BE's earnings above a certain level being paid to the Nuclear Decommissioning Fund.

The fund is supposed to cover the billions needed to pay for the time-consuming and costly process of decommissioning the nuclear generators.

Gordon Brown, the Chancellor, said in March that the government was prepared to sell part of its stake in BE and a decision would be made after the six month-long energy review.

In a research note, Deutsche Bank said: "With the issue of new nuclear build back on the agenda 'with a vengeance', any thoughts on BE's possible involvement would also be of interest to shareholders."

Coley told Scotland on Sunday in December that institutions are waiting until this summer - when Tony Blair will announce the outcome of the government's review of the nuclear industry - before deciding whether to pump billions into building the next generation of nuclear reactors.

He said: "If people can have a degree of certainty that the way is clear to make an investment and build assets, the energy business can find the money.

"I don't believe that there's a shortage of money if investors are certain that the assets can be built. They need signals that would take uncertainty out of the way. I have heard people talk very favourably about nuclear investment."

pc

[grippa] 14/6/2006 16:01

According to deutche bank (when it was written price was around 700p) BGY will start paying a dividend in 2007 of 11.3% which then moves to 13% in 2008. Using todays closing price that moves to around 12.23% for 2007 and about 14% for 2008. Not bad if these figures turn out to be correct.

[daithedeath] 13/6/2006 07:30

Auction of Eggborough power station?.Not a good move imho.

[markie7] 01/6/2006 21:50

The forecast yield here is huge

What am I missing? This looks an unusually obvious no-brainer, even given the strong run

Basically - the govt are going to have to back nuclear power again.

there must be upside from here, surely? I just don't think people have caught onto it.

[utsushi] 30/5/2006 10:56

nicolas, it's possible that earnings are too optimistic, so the P/E might be higher and the correction longer, all those cyclicals will get massacred..BGY has had a good run, and those broker notes seem a bit long in the tooth...no yield till next year so no rush to buy this one...

[pc4900074200] 29/5/2006 07:55

Yahoo News. 28-05-2006.

Blair aide backs nuclear power. Sunday May 28, 02:02 PM



Nuclear power should supply around 30% of Britain's energy needs as part of the country's contribution towards tackling climate change, Tony Blair's chief scientific adviser Sir David King has said.

At present, the UK's 12 nuclear sites generate around 19% of national energy consumption, but this is set to fall as ageing facilities are closed. Restoring nuclear to its previous 30% share would require the construction of up to 20 new plants.

But Sir David rejected suggestions that new taxes would be needed to pay for a new generation of nuclear power stations, insisting that it would be for the money markets to decide if they want to invest in them.

Prime Minister Tony Blair recently signalled his support for the nuclear option, which he described as "back on the agenda with a vengeance".

But Sir David said that he did not believe a final decision would be made until after the publication of the Government's energy review, expected in July, and the report of the Stern Commission on climate change.

New nuclear stations, combined with increased renewable generation from sources like wind, waves and the sun, would allow the UK to move towards its 2050 target of a 60% cut in use of the fossil fuels like coal, oil and gas, which are blamed for global warming, he said.

Asked on BBC1's Sunday AM what proportion of Britain's energy needs should be supplied by nuclear power, Sir David said: "My favoured figure is around 30%.

"We would then have baseline energy through the year from nuclear plus renewables an we can then diminish our dependence on fossil fuels.

"It also means in terms of security of supply that we have a better range of sources."

Media reports earlier this year claimed that Sir David backs a levy on taxpayers of as much as £170 a year per family to pay for building new nuclear plants.

pc

[grippa] 27/5/2006 16:19

Deutche Bank put out a buy note again on friday!

[whealan] 21/5/2006 14:14

nicholas

If you listened to Deanne Julius (deus julian) on Bloomberg yesterday you might think it will depend on when you have to close your contracts.