Centrica Share Discussion Threads

[hamhamham1] 07/11/2017 18:42

Hi Nortic. I think SSE and NPower are trying to in effect create a 'bad bank'. It's probably right for these 2 particular companies for different reasons. For Centrica, I would keep the customer business as they have such a complete services model which fits around the customers that it's worth delivering the complete end user package. Centrica should take the hit on the cap and consolidate. They will pick up a lot of extra customers from SSE without their upstream support maybe. And Centrica have many other strings in their bow.

[hamhamham1] 07/11/2017 18:19

In do not think Jeremy Corbyn would bother nationalizing the customer sales side of Utilities. Does the government want to manage 30 million end users? It's easier just to pass a law and apply a cap. The only one that it's worth him nationalising is National Grid. With one single purchase he could threaten both the upstream producers and the customer side.

[nortic 007] 07/11/2017 18:13

HHHGood evening This is a note from Deutche Bank. Hope it helps with your analysis in some shape or form.DB Some comments on Innogy (Buy) & SSE (Sell) from our analyst Martin Brough - SSE has announced that it is in discussions with innogy about creating a new company which could include SSE's household energy supply and services business in Great Britain and innogy's household and business energy supply business in Great Britain. SSE say discussions are 'well-advanced' but no final decisions have been taken. The combined business would be listed and SSE would demerge its shares to its shareholders. At first glance investors may think this looks risky for SSE but interesting for innogy since SSE's business is profitable and innogy's is loss making. However details may be imprtant - for instance it might be possible that innogy could put cash in so it's hard to comment on principle. Our published sum of the parts values SSE at about 1000p per share plus the whole of retail (including business supply and the supply business

[hamhamham1] 07/11/2017 17:51

So ybe they will be renamed 'the big four and the one who is locked in the attic'

[hamhamham1] 07/11/2017 17:27

So NPower lost over £100m in 2016 and SSE customer facing supply only accounts for 15% of their profits (just over £200m) in 2016. So this merger is going to create a company that only makes a combined profit of £100-200m. Who in their right mind would invest in this company? Even if you chuck in another £100m for services? That's still only half what British Gas make on end customer supply only. SSE have the largest number of customers out of the big 6 on the standard variable tariff.

[hamhamham1] 07/11/2017 16:33

CNA Merger. Never rule out anything. Seems unlikely but when stock prices are depressed and size/scale bring their own advantages...

[careful] 07/11/2017 16:16

A Corbyn win to stop Brexit is ironic.
One of things Corbyn does not like about being in the EU is that he would not be allowed to nationalise Centrica and others.
He admitted this.

[justiceforthemany] 07/11/2017 16:15

SSE and npower to merge then. Could see a pick up in further merger and M&A activity in the sector. Centrica included.

[hamhamham1] 07/11/2017 16:09

Close above 168.2p and I'm happy. What has the world come to :)

[portside1] 07/11/2017 15:30

AROUND 30% OF CONSERVATIVE MPs want an general election to get labour in and stop brexit .. its on the cards for an election next year those in the con party want to lose election so that lab will stop brexit fact

[portside1] 07/11/2017 15:27

MAY AND HER CLOWNS , Are the best campaigners for the labour party and labour have no need to campaign MAY IS DOING EVERTHING FOR THE LABOUR PARTY

SHE IS THE WORST CON MP IN HISTORY OF THE PARTY

[hamhamham1] 07/11/2017 15:18

Not that I 'short' shares but I will watch this new company share price if its just their end customer business. NPower has been haemorrhaging money for the past few years. Put that together with the customer facing low profit side of SSE and the markets will smell blood, especially in this political climate.

[essentialinvestor] 07/11/2017 15:12

Increasingly think nothing can stop Labour coming to power,
much as I'm loath to say that.

How LAB have won the public around on domestic utilities shows
how powerful the Party has become. Nearly 80% of the UK now support
nationalised energy supply, that would have been unthinkable just 3 years ago.

[hamhamham1] 07/11/2017 15:03

Are they just spinning off the customer facing stuff under a new joint company? Hmmmm that might be hard work to get any funds to buy those shares.

[w1ndjammer] 07/11/2017 14:51

She will be gone in 2019

WJ.

[portside1] 07/11/2017 14:45

WE MAY AS WELL VOTE LAB AS TORY BECAUSE THEIR IS NO DIFFERENCE NOW BUT AT LEAST CORBYN SPEAKS UP FOR IS PARTIES CONVICTIONS MAY IS DESTROYING THE CON PARTIES CONVICTIONS

[hamhamham1] 07/11/2017 14:31

I bet the last thing the government wanted is to turn the big 6 into the big 5. Tee Hee. What was it people were warning about with government meddling in the markets, oh yes, unintended consequences. I am laughing my head off :)

[portside1] 07/11/2017 14:28

so far conn as been silent its now time for him to act and speak ,

[portside1] 07/11/2017 14:26

the only resolve is for the big 6 to tell the gov we are withdrawing all future investments because it would be pointless waste of money


OUR CEOS NEED TO HAVE THE GUTS TO ACT OR RESIGN

[hamhamham1] 07/11/2017 14:20

Ahh, SSE and Innogy merger? I guess Innogy has more firepower as it's backed by RWE. At least the government will have a new big boy to bully.

[portside1] 07/11/2017 14:12

WE ALSO VOTED FOR MIGRANTS TO GO HOME , we may as well close parliament and let the eu run the country . our gov are back tracking on the voters