Centrica Share Discussion Threads

[waldron] 19/6/2022 17:34

NASDAQ


Equinor (EQNR) Scores Deal to Supply Gas to UK's Centrica

Zacks Equity Research Zacks
Published
Jun 17, 2022 9:28AM EDT



Equinor ASA EQNR entered an agreement with Centrica to supply additional gas to the U.K. for the next few years in response to the country’s mounting energy crisis.

The U.K., along with many other European buyers, cut off Russian energy supplies after the country’s attack on Ukraine. Energy suppliers are rushing to stockpile gas supplies for this winter amid the depressed market.

Per the terms of the new agreement, Equinor would supply additional 1 billion cubic meters (bcm) of gas to London-based energy supplier Centrica, bringing the total volume to be supplied to more than 10 bcm per year. This represents about 13% of the annual gas consumption in the U.K. and establishes Norway as the country’s primary gas supplier.

Centrica is a leading provider of electricity and gas to British consumers. The company has been working with suppliers and the government to meet the country’s energy requirements. The agreement will help address the energy needs for the next few years, proceeding toward replacing the gas supplied by Gazprom as the company pledged to exit all contracts with the exporter.

Equinor usually delivers 20-22 bcm of gas to the U.K. per year, which covers more than a quarter of the demand. The company cited that it is open to more long-term contracts with European buyers in the current market circumstances.

The latest agreement would strengthen the U.K.’s energy security for the next few years. It supports vital domestic supplies and bolsters the strategic relationship between the U.K. and Norway.


Price Performance

Shares of Equinor have outperformed the industry in the past month. The stock has gained 1.3% against the industry’s 3.7% decline.

[the_man_with_the_pink_gun] 16/6/2022 18:36

PINOCCHIO PLEASE RESIGN.

[norma_noog] 16/6/2022 18:22

CNA closing share price 76.66, down 2.28, minus 2.9% (WOW). Superb. dio160 is +50% down🚗

[norma_stitts] 16/6/2022 15:57

CNA = 💩💩💩
CNA CEO = 🔔🔚

[orchestralis] 16/6/2022 15:06

I'm out. Had a good run, but I think there are better stocks to invest in now.

[adrian j boris] 16/6/2022 08:08

FWIW


Centrica: AlphaValue goes from sell to accumulate with target of 97.50 EUR.

[adrian j boris] 16/6/2022 08:08

FWIW


Centrica: AlphaValue goes from sell to accumulate with target of 97.50 EUR.

[garycook] 16/6/2022 02:15

Goldman Sachs reinitiates Centrica with 'buy' - price target 123 pence

[338] 15/6/2022 16:46

CNA closing share price 78.94, up 2.84, plus 3.7% (WOW). Superb🚗

[garycook] 15/6/2022 14:50

Goldman Sachs reinitiates Centrica with 'buy' - price target 123 pence

[diohohku] 15/6/2022 13:09

Or plus/minus 50% PMSL! 😇

[diohohku] 15/6/2022 13:05

discodave45 - 08 Mar 2021 - 16:00:06 - 10517 of 10851 Close Brothers bring SAGA to market - SAGA
Nice top up just over 398.........IMO the trading range is always likely to be plus/minus 2%’ish (8p-10p) here as quite volatile still, so any dips are welcome. 😇

[norma_noog] 14/6/2022 22:12

CNA closing share price 76.10, down 1.88, minus 2.41% (WOW). Superb🚗

[338] 14/6/2022 11:03

In stagflationary environment, the share price of utility companies should perform well as long as they have healthy balansheet, profitable and deliver dividend... Centrica need to reinstate dividend payment to get out of penny share zone... come on centrica you have got cash to distribute a small dividend

[norma_noog] 13/6/2022 21:53

CNA closing share price 77.98, down 2.68, minus 3.32% (WOW). This was over 250 5 years ago. Will dio160 ever get to 160 again? Superb🚗

[waldron] 12/6/2022 09:30

Centrica Looks To Reopen Britain’s Biggest Natural Gas Facility
By City A.M - Jun 10, 2022, 11:30 AM CDT

Centrica has filed a formal application to reopen Britain’s biggest natural gas storage site after the site was closed five years ago for “economic̶1; reasons.

The Windsor-headquartered utility company has submitted a formal application to the North Sea energy regulator to reopen the Rough facility off the east coast of Yorkshire.

Centrica previously closed its gas storage facility in 2017, after the government refused to subsidise the cost of repairs to the North Sea facility.

The application comes as the government pushes forwards with plans to increase the UK’s gas storage capacity as a means of limiting the impacts of the energy crisis ahead of the coming winter.

The plans come as global natural gas prices have soared in recent months as demand has outstripped supply, due to rebounding global demand following Covid and Russia’s invasion of Ukraine.

The Rough facility consists of a depleted natural gas field, which lies 2.7km below the seabed, 18 miles off the coast of Yorkshire.

By CityAM

More Top Reads From Oilprice.com:

[disc0dave45] 11/6/2022 12:47

PMSL

Close Brothers bring SAGA to market
hamhamham116 Feb '21 - 09:53 - 7061 of 20945
0 0 0
This is pointless, i am long here, i think it's a good and uundervalued company.
You just got issues.

This is 2% of my portfolio.

Close Brothers bring SAGA to market
hamhamham119 Feb '21 - 15:00 - 7647 of 20945
0 0 0
News will be positive be steady, think will be well received. But not bothered as here for 5 yrs or so, 1500p is long term target, that's still only about half the previous market cap high.

[hamhamham1] 10/6/2022 18:27

Disco gonna lose his shirt on SAGA.
Doh!

[norma_noog] 09/6/2022 21:41

CNA closing share price 81.94, down 1.34, minus 1.61%😂

[sarkasm] 08/6/2022 07:30

Tuesday 07 June 2022 6:06 pm


Protecting customer balances crucial to fixing energy sector, warns British Gas owner

By: Nicholas Earl

Ringfencing the credit balances of customers across the energy sector should be an industry standard in order to protect consumers, argues the chief executive of British Gas owner Centrica.

Speaking at the energy giant’s annual general meeting today, Chris O’Shea described the failures of the retail market as “predictable and predicted”.

He voiced his support for adequacy rules and fit and proper persons tests to ensure suppliers were run responsibly.

This follows a raft of reforms from market regulator Ofgem to ensure the financial durability of energy firms in the face of future market shocks.

He also for “customer protections” for the credit balances of customers, so that energy firms could not use money intended to pay for gas to fund commercial strategies.

The energy chief hit out at “one of the “largest, newer UK energy suppliers” that he said was against the proposal, which had become a company policy at British Gas.

Centrica announced in February that it had voluntarily protected all British Gas customers’ credit balances, and had called on Ofgem to make this an common practice across the energy sector.

While its proposals for ringfencing could protect balances, it would not address key issues that caused suppliers to collapse such as a lack of hedging across the energy industry and the constraints of a rigid price cap amid soaring wholesale costs.

Ringfencing could also drive up energy bills, by forcing companies to seek more funds to offset money owed to them by customers over extended periods of time.

This would favour larger energy firms with more resources, which have generally rode out the energy crisis more successful than smaller suppliers in the market.



British Gas anticipates hefty profits after navigating challenging industry conditions

British Gas has scooped up 700,000 new customers from fallen firms amid market carnage caused by spiralling wholesale prices, insufficient hedging and the constraints of the rigid consumer price cap.

This has seen 29 suppliers collapse since last September – directly affecting over four million customers.

This includes the fall of Bulb Energy into de-facto nationalisation, propped up by £3bn of public funds since November, in the biggest state bailout since RBS in 2008.

Last month, Centrica said it expects to post annual earnings above forecast expectations, of between 6.7 and 10.8p per share.

The company been boosted by “strong” volumes across its nuclear and gas production operations while its trading business has also increased volumes of gas and renewable energy to improve UK supply amid pressure from the Russian invasion of Ukraine.

It also confirmed the sale of Spirit Energy’s Norwegian assets last week in a $1bn plus deal.

O’Shea also spoke out against the Energy Profits Levy, an additional 25 per cent tax placed on North Sea oil and gas operators.

It is expected to raise £5bn to help ease soaring household energy bills – but has also raised industry concerns it could deter investment.

He said: “The recent intervention in the form of a windfall tax in the UK creates uncertainty, damages investor confidence, and is borne by shareholders.”

The energy chief argued that the government should be “encouraging the substantial investment needed to deliver a low carbon future” which, could create “hundreds of thousands of new well-paid green jobs” to grow the economy.

[ariane] 07/6/2022 14:05

the guardian


British Gas owner says windfall tax will dent investor confidence

Centrica boss also defends Amber Rudd’s appointment to its board as a non-executive

Gas hob with a bill from British Gas

Britis Gas owner Centrica’s operating profits doubled to £948m in 2021.

Alex Lawson Energy correspondent

Tue 7 Jun 2022 13.21 BST

Last modified on Tue 7 Jun 2022 13.52 BST

The British Gas owner, Centrica, has warned that Rishi Sunak’s windfall tax will “damage investor confidence” as Britain attempts to build up green energy supplies.

The Centrica chairman, Scott Wheway, and its chief executive, Chris O’Shea, hit out at the chancellor’s 25% levy on oil and gas operators’ excess profits, which will be used to pay for measures to reduce soaring energy bills.

Centrica – Britain’s biggest energy supplier – reported that its annual operating profits doubled to £948m in 2021, aided by a surge in earnings from its North Sea oil and gas arm. It expects to make a healthy profit again this year.




Sunak hopes to raise £5bn from the tax, but a debate is raging over the structure of the levy. An investment allowance within the tax allows energy firms to make 91p of tax savings for every £1 spent.

Labour has labelled the allowance a “gigantic get-out clause” while analysts believe £8bn worth of oilfield projects could soon get the green light as a result of the measure.

Speaking at Tuesday’s annual shareholder meeting in Leicester, Wheway said: “We’ve got every empathy with the plight of many customers presently, that are facing difficulties in managing their energy bills, and we welcome action to help those customers.

“But we also share a lot of concern around choices that may be made to apply taxes to energy production, which – although they may derive short term benefits – can cause medium and long term problems, because we know that the industry that we’re in is a very long term industry. And we’d urge everyone thinking of those things to strike the right balance.”

O’Shea waived his £1.1m bonus last year as the company cut its dividend while household bills ballooned. He was paid £875,000 in salary and benefits.

Energy companies have benefited as a squeeze on supplies exacerbated by Russia’s invasion of Ukraine has pushed up revenues. Centrica is attempting to move towards greener energy supplies, while Sunak is exploring extending the tax to electricity generators.

O’Shea said: “It’s clear that the energy market is going through rapid change. And the opportunities from this transition are enormous.


“However the recent intervention in the form of a windfall tax in the UK creates uncertainty and damages investor confidence. And, as you all know only too well, it’s borne by you, our shareholders.”

O’Shea said the company was speaking to government “to make sure that everything is fair”.

He added: “In the long term, we need to work together with all stakeholders to protect the most vulnerable in society whilst encouraging the substantial investment needed to deliver a low carbon future which, if we get it right, will create hundreds of thousands of new, well-paid green jobs, which will help grow the economy.”

O’Shea also reiterated calls for energy bosses to pass a “fit and proper person” test and the protection of customer deposits after nearly 30 suppliers collapsed in the energy crisis.


Wheway was also forced to defend the appointment of former home secretary Amber Rudd, who joined Centrica’s board as a non-executive in January.

One shareholder asked whether – given the Conservatives had introduced an energy price cap and a windfall tax on the sector – a former minister should be on its board.

Wheway said that the board “look through politics and remain politically neutral”.

Former Santander UK boss Nathan Bostock has also joined the board. Wheway said: “I sit here with 100% confidence and tell you that our new appointees to the board, including Amber, and Nathan, and others that we have in the pipeline have been selected because we think they’re the finest people to do those jobs … they bring skills and abilities which the company will enormously benefit from.”