Centrica Share Discussion Threads

[discofreddy] 24/7/2021 17:33

The one to short is SAGA. MASSIVE DEBT.big pension deficit. 200 million bank payment due in Jan 2022 RED FLAGS ALL OVER IT.

[waldron] 24/7/2021 15:19

hifc231
24 Jul '21 - 13:56 - 31903 of 31903
0 0 0
(

Dividend

-- No 2021 interim dividend is being declared. We recognise the importance of dividends to shareholders and intend to recommence dividends to shareholders when it is prudent to do so.

Further evidence of the Group's robust cash flow generation

-- Free cash flow from continuing operations of GBP524m was GBP20m, or 4%, higher than in H1 2020, despite the reduction in EBITDA. This increase reflects us receiving net tax refunds of GBP41m in H1 2021, having paid net tax of GBP43m in H1 2020, and reduced capital expenditure of GBP187m (2020: GBP285m) as we maintained tight capital discipline and reduced IT spend in British Gas Energy. These more than offset the impact of lower divestment proceeds. Exceptional cash payments of GBP48m were similar to H1 2020.

-- After including net interest payments of GBP109m (2020: GBP80m), pension deficit payments of GBP243m (2020: GBP76m), which include GBP167m of pension strain payments related to redundancies in prior years, positive movements in margin cash, proceeds from the sale of Direct Energy and non-cash decreases to net debt of GBP21m, net debt at the end of June 2021 was GBP93m compared to GBP2,998bn at the end of 2020.

[disc0dave45] 24/7/2021 14:18

"As we look to help our customers reduce their carbon emissions, our Nuclear stake provides us with an important source of zero carbon electricity. Therefore, we may decide to retain our 20 per cent interest."Wtf! - for 3 years they've been trying to offload their stake in nuclear, it's costing them a fortune and they now say they may keep it.......so their strategy appears to be sell profitable assets and businesses and keep loss making ones (h1 operating loss £38m), go figure.

[hifc231] 24/7/2021 13:56

(hXXps://www.centrica.com/investors/results-centre/2021-interim-results/)

Just reading the results summary on Centricas Website and its states:

Adjusted earnings from continuing operations: Up £8M to £98m (from £90m)
Free cash flow from continuing operations: Up £20m to £524m (from £504m)
Net Debt: Down from £2905m to £93M Debt
Earnings Per Share: up to 1.7p (from 1.6p)

On 25th Feb Centrica stated Net Debt was £0.4 Billion debt (aka £400m), so since Feb Centrica have knocked off £307m approx off the debt pile (Now £93M), so by about Sept/Oct they should be debt free?

Surely that would mean they are in a position to reinstate some dividend, then this would start climbing again. A debt free company, paying a dividend, with a stabilized customer base in this Covid Times……

If it doesn’t then you know there is some conspiracy against Centrica lol

[disc0dave45] 23/7/2021 13:59

eps 2.8, PE is 17Consensus forecast is 3.7p, IMO it will be lucky to make that going on their outlook. 3.7 x 12 = 44p

[longwell] 23/7/2021 13:22

Pe of 1. Earnings increase could see large upside with limited downside plus potential for foreign investors to enter market.Looks a safe longterm investment to me.once starts dividends will rise to 60- 70p level IMHO.

[supermarky] 23/7/2021 12:31

looking at 1 yr chart support around here

[undervaluedassets] 23/7/2021 10:18

looked alright to me the results.. Not a holder currently..

interested to hear what others thought...

[waldron] 23/7/2021 07:21

European markets set to nudge higher as investors watch earnings, data

Published Fri, Jul 23 20212:05 AM EDT

Elliot Smith
@ElliotSmithCNBC


Key Points

July’s flash PMI (purchasing managers’ index) readings are due Friday morning from France, Germany and the wider euro zone.

Earnings season continues to gather steam in Europe, with Thales, Signify and Lonza among those reporting second-quarter results on Friday, while Vodafone issues a trading update.

LONDON — European stocks are set for a modestly higher open on Friday, as investors monitor a slew of economic data from across the continent, along with a fresh round of corporate earnings.

Britain’s FTSE 100 is seen around 13 points higher at 6,981, Germany’s DAX is expected to add around 29 points to 15,544 and France’s CAC 40 is set to gain around 17 points to 6,499, according to IG data.

[waldron] 22/7/2021 22:05

Simplifying the Spirit Energy sales process

-- Our intention remains to exit oil and gas production in line with our strategic shift to simplify the Group, focus on the customer and decarbonise the Group's portfolio.

-- In line with this, in 2019 we announced our intention to divest our 69% shareholding in the Spirit Energy E&P business. The disposal process has been impacted by the uncertain backdrop created by the Covid-19 pandemic, and the joint venture structure which limited the number of parties interested in buying the business as a whole. We have now made progress towards pursuing alternative sale options, which will simplify the sale structure and enable us to maximise the value of our assets while de-risking liabilities.

-- While we still own Spirit Energy, we will actively manage it. The steps we have taken with our partner and the Spirit management team mean the business was free cash flow positive in H1 2021 and given current commodity prices we expect that to remain the case for the remainder of this year.

[tahmina1] 22/7/2021 21:45

Director buy £25k worth ...

disappointing price action today

[wendsworth] 22/7/2021 20:26

American Idiot : Agree with your post 616. See Centrica as a sound medium term investment. So does a Director...by the look of it!

[mroalan] 22/7/2021 13:44

Dividend

--" No 2021 interim dividend is being declared. We recognise the importance of dividends to shareholders and intend to recommence dividends to shareholders when it is prudent to do so."

Theres a few holes there, "We recognise the importance of dividends" thats not true whilst paying themselves more. "prudent" WTF would they know on the subject?

[supermarky] 22/7/2021 10:15

At least they are being prudent and sensible. Once the ship is stable! Anyway good hold at the moment. Steady as she goes

[florenceorbis] 22/7/2021 09:58

I guess disappointment regarding no dividend as yet

[nemesis6] 22/7/2021 09:44

and its still down ffs!!

[florenceorbis] 22/7/2021 08:07

Dividend

-- No 2021 interim dividend is being declared. We recognise the importance of dividends to shareholders and intend to recommence dividends to shareholders when it is prudent to do so.



2021 OUTLOOK BROADLY UNCHANGED

-- The factors we set out in our Preliminary Results in February that we expect to impact our 2021 full year outlook remain relevant.

-- Bord Gáis Energy's Whitegate CCGT remains offline having experienced a forced outage in December 2020, and it is currently expected the power station will be back online towards the end of 2021. Adjusted operating profit is expected to be negatively impacted by up to GBP40m, at the upper end of the previously guided GBP25m-GBP40m range, due to lost revenue and higher market power price exposure to meet customer demand.

-- We still forecast that Energy Company Obligation (ECO) costs in British Gas Energy will be around GBP80m higher for the full year than in 2020, and this level of spend is projected to continue into 2022.

-- We also still expect to benefit materially from our significant restructuring programme, with year-on-year operating cost savings of more than GBP100m. Combined with the impact of colder weather conditions in the UK, we continue to expect to see some margin recovery in British Gas Energy in 2021 when compared to 2020 despite a fall in underlying consumption, a reduction in customer numbers and the higher ECO costs.

-- The increase in wholesale commodity prices are starting to benefit our Upstream businesses, however full year Spirit Energy gas and oil production volumes are now expected to be around 15%-20% lower in 2021 than in 2020. We will see additional depreciation of around GBP40m in H2 2021 as a result of the write-backs on Spirit Energy assets. On Nuclear, we have greater clarity on the future of some stations, however nuclear generation is expected to be lower in 2021 than in 2020 given H1 2021 output and current plant outages.

-- In addition, the remaining legacy gas contract in Energy Marketing and Trading is now expected to make a full year operating loss in 2021 around the upper end of the previously provided GBP50m-GBP100m per annum range, reflecting recent commodity price moves.

-- Although Covid-19 had a material impact on the financial result in H1 2021, the easing of restrictions are expected to result in some recovery in business energy demand in H2 2021. In addition, we expect to see a return to more normal levels of services and solutions workload. However, we remain cautious on the potential for incremental working capital outflow and higher bad debt costs due to an uncertain economic outlook and the end of various government support schemes.

-- We will continue with our strong focus on free cash flow, in particular a tight discipline on operating costs, cash restructuring and capital expenditure.

[florenceorbis] 22/7/2021 08:05

2021 OUTLOOK BROADLY UNCHANGED

-- The factors we set out in our Preliminary Results in February that we expect to impact our 2021 full year outlook remain relevant.

-- Bord Gáis Energy's Whitegate CCGT remains offline having experienced a forced outage in December 2020, and it is currently expected the power station will be back online towards the end of 2021. Adjusted operating profit is expected to be negatively impacted by up to GBP40m, at the upper end of the previously guided GBP25m-GBP40m range, due to lost revenue and higher market power price exposure to meet customer demand.

-- We still forecast that Energy Company Obligation (ECO) costs in British Gas Energy will be around GBP80m higher for the full year than in 2020, and this level of spend is projected to continue into 2022.

-- We also still expect to benefit materially from our significant restructuring programme, with year-on-year operating cost savings of more than GBP100m. Combined with the impact of colder weather conditions in the UK, we continue to expect to see some margin recovery in British Gas Energy in 2021 when compared to 2020 despite a fall in underlying consumption, a reduction in customer numbers and the higher ECO costs.

-- The increase in wholesale commodity prices are starting to benefit our Upstream businesses, however full year Spirit Energy gas and oil production volumes are now expected to be around 15%-20% lower in 2021 than in 2020. We will see additional depreciation of around GBP40m in H2 2021 as a result of the write-backs on Spirit Energy assets. On Nuclear, we have greater clarity on the future of some stations, however nuclear generation is expected to be lower in 2021 than in 2020 given H1 2021 output and current plant outages.

-- In addition, the remaining legacy gas contract in Energy Marketing and Trading is now expected to make a full year operating loss in 2021 around the upper end of the previously provided GBP50m-GBP100m per annum range, reflecting recent commodity price moves.

-- Although Covid-19 had a material impact on the financial result in H1 2021, the easing of restrictions are expected to result in some recovery in business energy demand in H2 2021. In addition, we expect to see a return to more normal levels of services and solutions workload. However, we remain cautious on the potential for incremental working capital outflow and higher bad debt costs due to an uncertain economic outlook and the end of various government support schemes.

-- We will continue with our strong focus on free cash flow, in particular a tight discipline on operating costs, cash restructuring and capital expenditure.

[florenceorbis] 22/7/2021 08:01

Dividend

-- No 2021 interim dividend is being declared. We recognise the importance of dividends to shareholders and intend to recommence dividends to shareholders when it is prudent to do so.

[t-trader] 22/7/2021 07:57

I guessed CityAm were wrong, just checking.

Muppets should read RNS properly before publishing an update.

[american idiot] 22/7/2021 07:55

City Am is wrong.

Centrica net debt is £97m (Down from £3b) due to the sale of Direct Energy.