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Share Name Share Symbol Market Type Share ISIN Share Description
Centrica Plc LSE:CNA London Ordinary Share GB00B033F229 ORD 6 14/81P
  Price Change % Change Share Price Shares Traded Last Trade
  -0.11 -0.24% 45.75 48,417,484 16:35:27
Bid Price Offer Price High Price Low Price Open Price
45.74 45.81 46.19 45.02 46.12
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Gas Water & Utilities 22,674.00 -1,104.00 -17.80 2,671
Last Trade Time Trade Type Trade Size Trade Price Currency
18:00:36 O 3,443,752 45.755 GBX

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Date Time Title Posts
28/11/202014:12CENTRICA1,046
09/11/202014:32Centrica bull run 2018 47
27/10/202009:45Centrica broker notes 2013/1431,848
24/7/202007:08Centrica - A recovery stock for 2020?2
13/2/202015:15WHY UTILITY COMPANIES ARE FACING AN ENERGY DEATH SPIRAL...TIME TO SHORT THEM18

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Centrica (CNA) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2020-11-27 18:00:3745.763,443,7521,575,688.73O
2020-11-27 17:59:4645.87137,34963,000.61O
2020-11-27 17:48:2945.992,474,1311,137,753.88O
2020-11-27 17:48:2845.381,000,000453,780.00O
2020-11-27 17:44:5345.96120,90755,562.81O
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Centrica (CNA) Top Chat Posts

DateSubject
28/11/2020
08:20
Centrica Daily Update: Centrica Plc is listed in the Gas Water & Utilities sector of the London Stock Exchange with ticker CNA. The last closing price for Centrica was 45.86p.
Centrica Plc has a 4 week average price of 35.69p and a 12 week average price of 35.69p.
The 1 year high share price is 95.32p while the 1 year low share price is currently 29.10p.
There are currently 5,838,313,832 shares in issue and the average daily traded volume is 29,027,984 shares. The market capitalisation of Centrica Plc is £2,671,028,578.14.
27/11/2020
19:11
aspers: Cleverinvestor........CNA was part of my life for 5 years, always nice to monitor what still goes with it....I sold at a huge loss but it is nice to know if I made the right move or not. I salvaged £85K from my investments here.....in a years time I will know if I made the right move by topping up in CCL, IAG, SAGA, NCYT and TUI. I may be mad but looking for a 100% gain in those shares over the next year. Would I have been better staying in CNA, only time will tell......are you expecting CNA to be 95p in a year? Maybe so but something needs to change drastically in the company for that to be achieved. Anyway good luck whatever you choose.
19/11/2020
16:20
cyberian: Trading update given last year on 21st November....when you compare with Royal Mail with their issues CNA could achieve improved expectations going forward. Royal Mail share price has jumped nearly 100% over the last few months (well, since early May)and still looking for a new CEO. The perception for RMG recovery is now reflected in its share price...why not at CNA?
19/11/2020
13:09
careful: So what do we damaged long term holders think of Centrica going forward? Once mighty Centrica were valued at about £20bn a few years ago. Today share price and valuation about 88% down from peak. Just about everything that could go wrong did. I still hold a decent amount and Centrica has the distinction of being my worst ever significant investment. (ignoring small investments in Woolwoths, Northern Rock and Eurotunnal). I think CNA have improved of late and the upcoming green revolution could present opportunities. They have been active in home electric car charging developments for example. Centrica still have millions of loyal customers, at times in the past these would be highly valued. Maybe worth holding or even adding, hard to see this getting much lower.
10/11/2020
08:04
sarkasm: Investomania Will the HSBC, Glencore and Centrica share prices make gains after their declines? Could HSBC Holdings plc (LON:HSBA) (HSBA.L), Glencore PLC (LON:GLEN) (GLEN.L) and Centrica PLC (LON:CNA) (CNA.L) post improving share price performances? November 10, 2020 Robert Stephens, The HSBC Holdings plc (LON:HSBA) (HSBA.L), Glencore PLC (LON:GLEN) (GLEN.L) and Centrica PLC (LON:CNA) (CNA.L) share prices have experienced difficult periods this year. Could they produce improving performances in the long run? In my opinion, the HSBC share price has long-term turnaround potential. I think the company is making the right moves in terms of seeking to reduce costs at a time when it is experiencing an exceptional set of trading conditions. Sure, low interest rates and a difficult economic outlook in many of its main markets may weigh on its near-term share price prospects. However, I think that its 37% share price fall since the start of the year suggests that investors have accounted for this to some extent. I also believe that HSBC’s exposure to Asia may be of benefit to it in future. It could experience a higher rate of growth than its UK and European focused sector peers. This may improve its capacity to recover from recent declines in its valuation. I’m also upbeat about the long-term outlook for the Glencore share price. To my mind, the company has delivered a sound operational performance during unexpectedly difficult conditions in 2020. Most of its assets have continued to operate in spite of lockdowns being present in many regions this year. In the short run, investor sentiment could continue to be weak because of a difficult global economic outlook. This may reduce demand for commodity-related companies such as Glencore that are more reliant on the global economic outlook than some of their FTSE 100 peers. However, the company’s decision to postpone dividend payments, the capacity of its marketing division to provide growth in a variety of market settings and its strategy to embrace a low-carbon global economy mean that I’m optimistic about its potential to reverse share price declines experienced in 2020. Volatility may continue to be high, but I feel that it can produce relatively sound returns in the long run from its current price level. The Centrica share price has disappointed for a number of years. To my mind, the company has struggled to deliver on its revised strategy. This may have contributed to weakening investor sentiment that has caused the company to underperform the FTSE 100 by 80% over the past five years. The FTSE 100’s decline this year means that I believe there are a number of stocks that offer good value for money at the moment on a long-term basis. Therefore, for me, the Centrica share price does not have a large amount of appeal just now. I would rather wait for the business to start delivering more resilient operational and financial performance before becoming more bullish about its long-term prospects. Disclosure: the author has no position in any stocks mentioned.
05/11/2020
19:17
adrian j boris: Https://www.marketscreener.com/quote/stock/CENTRICA-PLC-9590112/financials/ EV seems to be over double current share price so one might think more outside the box Certain parts of the company are possibley under valued and advfn figures out of date buywell3 5 Nov '20 - 19:06 - 888 of 888 0 0 0 advfn financial for CNA Net Tangible Asset Value PS * -48.32 p MINUS sign above note perhaps intangibles and assets need to be revalued substantially UP
30/9/2020
11:26
hamhamham1: Thats just a technical thing, depends if the price struck was nearer the offer price or bid price, quite often when buying in the open market you get offered a share price and you take it, to you that's a buy, but if it's nearer or is, the offer price, then it's chalked up as a sell, ie you took the sellers offer. Or something like that :) It could be that brokers report the shares you buy as a buy if they are offering a price on a share they do not hold, so nearer your bid price, and maybe if it's a share they already own they list it as a sell, as nearer their offer price. Whether they go and purchase a share directly to balance the sale to you if they don't hold the share, then that makes sense, but again, I am probably wrong, am just guessing really??
24/9/2020
15:13
waldron: Oliver Haill 15:20 Thu 24 Sep 2020 Centrica shares trading in deep value territory, says JPMorgan New management has begun to turn things around and full-year results next year the analysts "expect to see the benefits of restructuring on earnings and a strategic update" Centrica PLC (LON:CNA) was upgraded by JPMorgan Cazenove as its shares are “trading in deep value territory” and the risk/reward is seen as being “skewed to the upside”. Analysts at the investment bank, who moved their rating to 'overweight' from 'equal weight', said the company has clearly underperformed compared to its energy company peers with retail exposure over the past several years, with a demotion from the FTSE 100 in June to cap it off. This is because of “failure to adapt meaningfully in the face of heightened competition and regulatory scrutiny in UK retail, exacerbated by exposure to commodities through upstream activities”. But new management in the last six months has begun to turn things around, the analysts said, with business simplification and material restructuring, including a deal to sell its North American business for US$3.6bn and another to buy the energy supply customers of Robin Hood Energy. This “should bring stability, if not growth, to the core, consumer facing business”, the JPM number crunchers reckon. The analysts' bear case assumption implies 25% downside to the current share price, with a base case that involves the target price being cut to 60p from 75p but still providing 50% upside, while a bull case sees 100% upside. Centrica's shares currently trade for 9.5 times 2021 forecast earnings and a 3.6 times multiples of EV/EBITDA, despite, it was pointed out, an unlevered balance sheet. “Our main catalyst is FY20 earnings next year, where we expect to see the benefits of restructuring on earnings and a strategic update. “In addition, execution of disposals of E&P and Nuclear should simplify the group and remove a major source of earnings volatility, driving a rerating.” Proactiveinvestors
07/8/2020
09:17
grupo guitarlumber: Energy bills: Millions set to see 'big savings' as price cap lowered 50 minutes ago Energy bills will fall by an average of £84 in October for millions after the energy regulator lowered the price cap due to cheaper gas wholesale prices. Ofgem has cut the default price cap to £1,042, its lowest level since the cap was introduced in January 2019. The pre-payment meter cap will fall by an average of £95 to £1,070. Ofgem said the changes would mean "big savings" for around 11 million households on default tariffs and four million on prepayment meters. The regulator said the reduction was due to a sharp decrease in wholesale gas prices since the cap was last updated in February. But it warned that the cap was likely to rise in April as wholesale prices have started to recover since hitting 20-year lows in the spring. Shop around "Millions of households, many of whom face financial hardship due to the Covid-19 crisis, will see big savings on their energy bills this winter when the level of the cap is reduced," said Jonathan Brearley, chief executive of Ofgem. But he said people "can reduce their energy bills further by shopping around for a better deal". Speaking to BBC Breakfast he advised: "Phone up your supplier and ask them to put you on the best deal they can offer. "If you can go further and get into the market and switch supplier, that will get you an even better deal than the regulated tariff." "This reduction in the price cap represents a much-needed financial boost for millions of households, at a time when many people are struggling due to the economic impact of Covid-19 and lockdown," said Ed Dodman, director of regulatory affairs at the Energy Ombudsman. "Shopping around for a cheaper energy deal is still the best way to save money, particularly for customers on standard variable tariffs, but before switching to a new supplier it's a good idea to check out its customer service credentials. He said review sites and other online tools give an idea of the quality of service on offer and can help people to make an informed decision when switching. How to get the best energy deal by Simon Read, personal finance reporter The energy price cap limits the amount that anyone on a standard variable tariff or pre-payment meter pays for their heating and lighting. It limits the price a supplier can charge customers per kWH of electricity and gas, not their total bill which will vary depending on how much energy they use. But energy users can save hundreds by switching to a lower-priced fixed deal. All suppliers have fixed-rate deals so the simplest way to save is to contact your existing supplier and asked to be moved to its lowest-priced fixed deal. But you could probably save more by switching to a rival supplier. It's simple to switch using an energy comparison site - all you'll need is your postcode, the name of your current supplier, and the name of your current tariff. Citizens Advice has a useful guide to choosing the right tariff. Ofgem also sets out the steps you should take to switch energy supplier and shop for a better deal. More savings "This price cap cut is effectively money off what are the most expensive tariffs in the market," said Richard Neudegg, head of regulation at comparison website Uswitch.com. "Wholesale energy prices plunged in March following Covid-19 lockdown measures, but millions of households who are on standard variable tariffs have yet to see the impact on their energy bills." He said the change in October represents a seven-month lag since the huge plunge in wholesale prices at the start of the lockdown - "an unavoidable fallout of the price cap system". "This summer has seen energy deals at their cheapest since 2018, and millions are already benefiting from the lower wholesale prices," he pointed out. "The news that Ofgem is dropping the price cap by £84 is good news at first glance, but there are more savings to be had if people switch to a fixed tariff now," said Stephen Murray, energy expert at Moneysupermarket. "Our view on the price cap has always been clear: don't rely on the cap to reduce your bills. "If you're on an expensive standard variable tariff and want to save hundreds of pounds on your annual bill, switch your energy supplier as soon as you can. It's simple to do and only takes minutes online." Meanwhile, Ofgem has recommended that the price cap on household energy bills be kept in place beyond this year. The energy regulator is required to give an annual assessment on the cap based on how competitive the energy market is. It has recommended that the price cap should remain in place in 2021, as without it customers on default tariffs could be overcharged for their energy, it said.
17/6/2020
06:00
nortic 007: SSE PLC Preliminary results for the year end 31 March 2020Source: UK Regulatory (RNS & others)TIDMSSERNS Number : 1649QSSE PLC17 June 2020SSE plcPreliminary results for the year ended 31 March 202017 June 2020HEADLINESResults for 2019/20* -- Adjusted operating profit up 37% to GBP1,488.4m o Despite negative coronavirus impact of GBP18.2m related to electricity demand(#) -- Reported operating profit down 40% to GBP963.4m -- Adjusted profit before tax up 49% to GBP1,023.4m -- Reported profit before tax down 55% to GBP587.6m -- Adjusted earnings per share up 35% to 83.6p, within forecast 83p-88p range -- Reported earnings per share down 67% to 40.6p -- Net exceptional charge of GBP738.7m before tax: o GBP529.0m on discontinued operations; ando GBP209.7m on continuing operations (incl. GBP33.7m relating to coronavirus impacts on bad debts(#) ) -- Capital and investment expenditure down 5% to GBP1,357.4m -- Adjusted net debt and hybrid capital at GBP10.5bn, in line with forecast -- GBP7.7bn total contribution to UK GDP; 83,040 UK jobs supported; EUR650m total contribution to Ireland GDP; 3,740 Irish jobs supported.(#) Total coronavirus impacts of GBP51.9m*Unless otherwise stated, excludes results from discontinuing operations: SSE Energy Services sold in January 2020 and Gas Production assets held for saleDividend for 2019/20-- Final dividend of 56p per share recommended for payment on 18 September 2020, making a full year dividend of 80p per share in line with five-year 2018/19 to 2022/23 dividend planOutlook for 2020/21 and beyond-- Coronavirus impacts on operating profit estimated between GBP150m and GBP250m before mitigation o Guidance on adjusted earnings per share to be provided later in financial year -- Comprehensive plan to sustain dividends and create value o Maintaining good liquidity and effective financial management o Reducing planned cash outflow (mainly capex) by at least GBP250m in 2020/21 o Securing value from disposals of at least GBP2bn by autumn 2021 -- Plan to invest capital and investment of around GBP7.5bn net in five years to 2024/25, focused on core strategic decarbonisation projects o Includes planned investment in 443MW Viking onshore wind farm - see separate announcement. -- New target to cut carbon intensity of electricity generation by 60% by 2030(#) -- Targeting net debt/EBITDA ratio at lower end of 4.5 to 5 times range between 2021/22 and 2024/25 -- Target to maintain credit rating ratios comfortably above those required for investment grade (#) Based on 2018 levels; previous target 50%. See sse.com for detailsDividend for 2020/21 -- Continuing to target delivery of the five-year 2018/19 to 2022/23 dividend plan *Based on estimated RPI of 1.5%Richard Gillingwater, Chair of SSE, said:"2019/20 was a year of progress for SSE. Financially, there was a solid recovery from the previous year. Strategically, we reshaped the Group with the sale of Energy Services and increased our focus on our core businesses of regulated electricity networks and renewable energy. Operationally, these businesses made significant progress towards our strategic priorities and ambition to be a leading energy company in a net zero world."Since March, SSE's overriding priority has been to support the safe and reliable supply of the electricity upon which the people and organisations responding directly to coronavirus depend and the commitment of people across SSE in challenging circumstances has been outstanding."It is still too soon to predict with accuracy the full human, social, economic and business impact of coronavirus; but we have put in place a comprehensive plan to achieve the related objectives of sustaining the dividend payments which provides vital income for people's pensions and savings - income which is now more important than ever; and promoting the long-term success of SSE for the benefit of all its stakeholders."Climate change remains a critical issue and we see significant opportunities to create sustainable value for shareholders and society through contributing to a much-needed green economic recovery and supporting the transition to net zero emissions."FINANCIAL PERFORMANCE IN 2019/20 AT A GLANCESSE Energy Services was sold on 15 January 2020 and SSE's investment in Gas Production assets was classified as held for sale at 31 March 2020. Both businesses have been classified as discontinued operations in the Summary Financial Statements and have therefore been excluded from profit- and loss-based measures in the tables below, in all periods. Key Financial Indicators Mar 20 Mar 19* Mar 18* Adjusted operating profit/(loss) GBPm GBPm GBPm =========== ========== ========== SSEN Transmission 218.1 252.1 195.6 =========== ========== ========== SSEN Distribution 356.3 401.3 402.2 =========== ========== ========== Electricity Networks Total 574.4 653.4 597.8 =========== ========== ========== Investment in SGN 202.3 176.8 165.3 =========== ========== ========== Economically-regulated networks total 776.7 830.2 763.1 =========== ========== ========== SSE Renewables 567.3 455.9 475.9 =========== ========== ========== Thermal Generation 152.7 (22.3) 107.8 =========== ========== ========== Gas Storage 3.7 (5.7) (6.5) =========== ========== ========== Thermal Energy Total 156.4 (28.0) 101.3 =========== ========== ========== Business Energy (GB) 9.2 51.6 64.2 =========== ========== ========== SSE Airtricity (NI and Ire) 48.8 38.6 33.0 =========== ========== ========== Customer Solutions Total 58.0 90.2 97.2 =========== ========== ========== Energy Portfolio Management (137.4) (284.9) 46.0 =========== ========== ========== Gas Production Continuing - contracts 77.1 - - =========== ========== ========== Enterprise 8.1 31.8 26.9 =========== ========== ========== Corporate Unallocated (17.8) (6.5) 10.4 =========== ========== ========== Total adjusted operating profit from continuing operations 1,488.4 1,088.7 1,520.8 =========== ========== ========== Adjusted profit before tax 1,023.4 685.1 1,153.3 =========== ========== ========== Adjusted earnings per share (EPS) pence 83.6 61.8 93.3 =========== ========== ========== Interim dividend per share (DPS) pence 24.0 29.3 28.4 =========== ========== ========== Final dividend per share (DPS) pence 56p 68.2 66.3 =========== ========== ========== Full year dividend per share (DPS) pence 80p 97.5 94.7 =========== ========== ========== Investment and capital expenditure (adjusted & reported) GBPm 1,357.4 1,422.9 1,503.0 =========== ========== ========== Adjusted net debt and hybrid capital GBPm (10,465.9) (9,437.0) (9,211.8) =========== ========== ========== Reported operating profit /(loss) on continuing operations =========== ========== ========== SSEN Transmission 218.1 252.1 195.6 =========== ========== ========== SSEN Distribution 351.9 401.3 420.2 =========== ========== ========== Electricity Networks Total 570.0 653.4 597.8 =========== ========== ========== Investment in SGN 80.8 85.1 71.8 =========== ========== ========== Economically-regulated networks total 650.8 738.5 669.6 =========== ========== ========== SSE Renewables 459.9 1,242.9 452.0 =========== ========== ========== Thermal Generation 15.5 (50.6) 71.4 =========== ========== ========== Gas Storage (1.4) (5.7) (6.5) =========== ========== ========== Thermal Energy Total 14.1 (56.3) 64.9 =========== ========== ========== Business Energy (GB) (18.5) 51.6 64.2 =========== ========== ========== SSE Airtricity (NI and Ire) 42.8 38.6 26.9 =========== ========== ========== Customer Solutions Total 24.3 90.2 91.1 =========== ========== ========== Energy Portfolio Management (171.6) (613.1) (43.1) =========== ========== ========== Gas Production Continuing - contracts 77.1 =========== ========== ========== Enterprise (2.0) 31.8 15.1 =========== ========== ========== Corporate unallocated (89.2) 179.6 (21.5) =========== ========== ========== Total reported operating profit on continuing operations 963.4 1,613.6 1,228.1 =========== ========== ========== Total Reported profit before tax on continuing operations 587.6 1,300.3 943.1 =========== ========== ========== Reported earnings per share (EPS) pence on continuing operations 40.6 123.7 69.9 =========== ========== ========== Unadjusted net debt GBPm (10,007.8) (8,936.0) (8,378.3) =========== ========== ========== (Loss)/profit after tax on discontinuing operations (478.6) 145.5 115.0 =========== ========== ========== *Restated to exclude the contribution of SSE Energy Services and Gas Production assets which have been presented as discontinued operations (see note 5.2 (i)) to the Summary Financial Statements). Key Performance Indicators Mar 20 Mar 19 Mar 18 Total Generation output - all plant - GWh 28,293 30,835 33,098 ======= ======= ======= Total Thermal Generation - GWh 17,725 21,056 23,670 ======= ======= ======= Total Renewable Generation - GWh (inc. pumped storage) 10,694 9,711 9,338 ======= ======= ======= Total Renewable Generation - GWh (also inc. constrained off) 11,384 10,399 9,744 ======= ======= ======= Average carbon intensity of electricity generated (gCO2e/KWh) 288 284 305 ======= ======= ======= Electricity Transmission RAV - GBPm 3,469 3,276 3,070 ======= ======= ======= Electricity Distribution RAV - GBPm 3,685 3,555 3,406 ======= ======= ======= Gas Distribution RAV - GBPm 1,952 1,898 1,828 ======= ======= ======= SSE Total RAV - GBPm 9,106 8,729 8,304 ======= ======= ======= Business Energy Electricity Sold - GWh 16,914 19,336 20,177 ======= ======= ======= Business Energy Gas Sold - mtherms 272 277 294 ======= ======= ======= All Ireland energy market accounts - m 0.72 0.72 0.74 ======= ======= ======= Notes:The definitions SSE uses for adjusted measures are consistently applied and are explained in the Alternative Performance Measures section of this document, before the Summary Financial Statements. Throughout this document losses are shown in brackets.Renewable generation excludes SSE's small biomass capability which is now managed by SSE's Enterprise business and which generated 58GWh 2019/20; 68GWh 2018/19 and 90GWh 2017/18.SSE's 2030 carbon intensity target is based on generation emissions only. To track progress against this target, previous years' intensity ratios have been restated to only cover electricity generation emissions rather than total scope 1 emissions.Further Information Investor Timetable Annual Report 2020 published on sse.com/investor pages 9 July 2020 Sustainability Report 2020 published on sse.com/investor pages 9 July 2020 Consolidated Segmental Statement 2020 on sse.com/investors 9 July 2020 Q1 Trading Statement 16 July 2020 Annual General Meeting - webcast only 12 August 2020 Ex-dividend date 23 July 2020 Record date 24 July 2020 Scrip reference pricing days 23 -29 July 2020 Scrip reference price confirmed and released via RNS 30 July 2020 Final date for receipt of scrip elections 21 August 2020 Final dividend payment date 18 September 2020 Notification of Closed Period By 30 September 2020 Interim Results for the six months ended 30 September 2020 18 November 2020 Contact Details Investors and Analysts ir@sse.com + 44 (0)345 0760 530 Media media@sse.com + 44 (0)345 0760 530 Webcast facilitySSE will present its full year results for the 12 months to 31 March 2020 on Wednesday 17 June at 08:30am BST. You can join the webcast by visiting www.sse.com and following the links on either the homepage or investor pages; or directly using https://edge.media-server.com/mmc/p/9t34c7ty. This will also be available as a teleconference, details below. Both facilities will be available to replay. Confirmation Code: 5579291 Location Phone Type Phone Number United Kingdom Toll free/Freephone 0800 279 6619 United Kingdom, Local Local +44 (0) 207 192 8338 United States, New York Local +1646 741 3167 United States/Canada Toll free/Freephone +1877 870 9135 Online informationNews releases and announcements are made available on SSE's website at www.sse.com /investors and you can register for RNS news alerts using the following link: https://sse.com/investors/regulatorynews/rns-alerts/ . You can also follow the latest news from SSE at www.twitter.com/sse .DisclaimerThis financial report contains forward-looking statements about financial and operational matters. Because they relate to future events and are subject to future circumstances, these forward-looking statements are subject to risks, uncertainties and other factors. As a result, actual financial results, operational performance and other future developments could differ materially from those envisaged by the forward-looking statements.SSE plc gives no express or implied warranty as to the impartiality, accuracy, completeness or correctness of the information, opinions or statements expressed herein. Neither SSE plc nor its affiliates assume liability of any kind for any damage or loss arising from any use of this document or its contents.This document does not constitute an offer or invitation to underwrite, subscribe for, or otherwise acquire or dispose of any SSE shares or other securities and the information contained herein cannot be relied upon as a guide to future performance.DefinitionsThese financial results for the year to 31 March 2020 are reported under IFRS (International Financial Reporting Standards), as adopted by the EU.In order to present the financial results and performance of the Group in a consistent and meaningful way, SSE applies a number of adjusted accounting measures throughout this financial report. These adjusted measures are used for internal management reporting purposes and are believed to present the underlying performance of the Group in the most useful manner for ordinary shareholders and other stakeholders.The definitions SSE uses for adjusted measures are consistently applied and are explained in the Alternative Performance Measures section before the Summary Financial Statements.In preparing this financial report SSE has been mindful of the commentary issued in May 2016 by the Financial Reporting Council on the European Securities and Markets Authority's Guidelines on Alternative Performance Measures. SSE will monitor developing practice in the use of Alternative Performance Measures and will continue to prioritise this, ensuring the financial information in its results statements is clear, consistent and relevant to the users of those statements.Important note: SSE Energy ServicesOn 15 January 2020, SSE completed the sale of its SSE Energy Services business to OVO Energy Limited. SSE Energy Services has been presented in these financial statements as a discontinued operation (see note 12.2 (i) of the Summary Financial Statements), therefore the results of SSE Energy Services have been excluded from the Group's adjusted profit and loss metrics.Important note: Gas ProductionAt 31 March 2020 SSE has assessed that SSE's investment in Gas Production assets should be classified as held for sale and the business activity classified as a discontinued operation (see note 5.2 (i) of the Summary Financial Statements). Therefore, the results of SSE's investments in Gas Production assets have been excluded from the Group's adjusted profit and loss metrics. While the assets of this business are held for sale, the benefit of an internal gas hedge is being retained within the SSE Group due to the structure of the proposed disposal.Impact of planned sales on the Group's APMsThe following metrics have been adjusted in all periods presented to exclude the contribution of SSE Energy Services and SSE's investment in Gas Production assets, which have been classified as discontinued operations as at 31 March 2020: -- Adjusted EBITDA; -- Adjusted operating profit; -- Adjusted net finance costs; -- Adjusted profit before tax; -- Adjusted current tax charge; and -- Adjusted earnings per share. STRATEGIC OVERVIEWA year of progressFor SSE, 2019/20 was a year of progress towards its goals for 2030 and its vision of being a leading energy company in a net zero world. Financially, results represented a solid recovery from the previous year, with increases in adjusted operating profit, adjusted profit before tax and adjusted earnings per share. Strategically, the completion of the sale of Energy Services in January 2020 was very significant, allowing SSE to become a company focused on successful development, efficient operation and responsible ownership of electricity infrastructure required for the transition to net zero emissions.Operationally, the establishment of SSE Renewables, and of different management structures for SSEN Transmission and SSEN Distribution, and other business units, has created an operating environment that gets the most out of specialist knowledge and insight - and gets the balance between empowerment and accountability right. The benefits of this were exemplified by SSE Renewables' outstanding success in the CfD auctions for offshore wind farm projects and in the quality of SSEN Transmission's business plan for the RIIO T2 Price Control.Underpinning all of this is SSE's commitment to four key goals for 2030, aligned to the UN Sustainable Development Goals - a commitment made even stronger through adoption of an even more ambitious target to reduce the amount of carbon in electricity generated.Comprehensive plan to respond to coronavirusThe results for 2019/20, allied to the reshaping of SSE to focus on core businesses, and the progress made in those core businesses, have given us a good foundation as we make our way through the challenges arising from the impact of coronavirus - namely: -- Reduced demand for electricity affecting DUoS for SSEN Distribution; -- Reduced demand from customers for electricity and related services; -- Excess electricity hedges with negative mark-to-market valuations; and -- Higher levels of customers' bad debt. These challenges are currently expected to have short-term adverse effects on our business that are substantial in the context of one year, but largely temporary in duration. We have put in place a comprehensive plan with the related objectives of sustaining SSE's ability to pay dividends which provides vital income for pensions and savings - income which is now more important than ever; and promoting the long-term success of the company, realising future opportunities in the transition to net zero, and contributing to a green economic recovery, for the benefit of all of SSE's stakeholders.Fundamentally, SSE is a resilient business, with quality assets in businesses such as renewables and electricity networks that have a key role to play in the transition to net zero. The quality and nature of our businesses and assets and their potential for sustainable value creation transcends the financial impact of coronavirus in this financial year.Creating value through the transition to net zeroOur strategic focus on regulated electricity networks and renewable energy, and the quality and nature of those businesses' assets and operations, mean SSE is well placed to benefit in subsequent years from the expected economic recovery and associated focus on the transition to net zero emissions.The requirement for electricity from renewable sources to support the decarbonisation of energy, heat and transport presents major opportunities for SSE Renewables; and the core role of transmission and distribution companies in enabling the transition to net zero, presents major opportunities for SSEN Transmission and SSEN Distribution. These three businesses are core to SSE and are well placed to realise these opportunities for growth, working closely with stakeholders.Our new plans to invest GBP7.5bn in new and upgraded electricity infrastructure over the five years to 2025, and our new target to cut the carbon content of the electricity we generate by 60% by 2030, building on the 50% reduction it has already achieved, is a vote of confidence in a green economic recovery and achievement of net zero emissions.All of this, allied to the shared talent, skills and values of people across the company, whose commitment and hard work in response to the challenges of recent months in particular has been outstanding, means that SSE is very well placed to emerge from the challenges arising from coronavirus and to create value for shareholders and society for years to come.Alistair Phillips-DaviesChief ExecutiveGROUP FINANCIAL REVIEW 2019/20This Group Financial Review 2019/20 sets out the financial performance of the SSE Group in the 12 months to March 2020. See also the separate section on Group Financial Outlook 2020/21 and Beyond.The following tables provide a summary of SSE Group financial performance in 2019/20. The definitions SSE uses for adjusted measures are consistently applied and are explained in the Alternative Performance Measures section of this document, before the Summary Financial Statements.SSE Energy Services was sold on 15 January 2020 and SSE's investment in Gas Production assets was classified as held for sale at 31 March 2020. Both businesses have been classified as discontinued operations in the Summary Financial Statements and have therefore been excluded from profit- and loss-based measures in the tables below in all periods. Key Adjusted Financial Metrics Mar 20 Mar 19 Mar 18 GBPm GBPm GBPm Adjusted Operating Profit 1,488.4 1,088.7 1,520.8 ======== ======== ======== Adjusted Net Finance Costs 465.0 403.6 367.5 ======== ======== ======== Adjusted Profit before Tax 1,023.4 685.1 1,153.3 ======== ======== ======== Adjusted Current Tax charge 114.2 7.1 111.7 ======== ======== ======== Effective current tax rate (%) 11.2% 1.0% 9.7% ======== ======== ======== Adjusted Profit after Tax 909.2 678.0 1,041.6 ======== ======== ======== Less: hybrid equity coupon payments 46.5 46.6 98.5 ======== ======== ======== Adjusted Profit After Tax attributable to ordinary shareholders 862.7 631.4 943.1 ======== ======== ======== Adjusted EPS - pence 83.6 61.8 93.3 ======== ======== ======== Number of shares for basic/reported and adjusted EPS (million) 1032.5 1021.7 1010.9 ======== ======== ======== Shares in issue 31 March (m) 1039.4 1039.1 1023.0 ======== ======== ======== Key Reported Financial Metrics Mar 20 Mar 19 Mar 18 GBPm GBPm GBPm Reported Operating Profit 963.4 1,613.6 1,228.1 -------- -------- -------- Reported Net Finance Costs 375.8 313.3 285.0 -------- -------- -------- Reported Profit before Tax 587.6 1,300.3 943.1 -------- -------- -------- Reported Tax (credit)/charge 121.5 (9.9) 138.0 -------- -------- -------- Reported Profit after Tax on continuing operations 466.1 1,310.2 805.1 -------- -------- -------- Reported (loss)/Profit for the period on discontinued operations (net of tax) (478.6) 145.5 115.0 -------- -------- -------- Reported Profit/(Loss) after Tax (12.5) 1,455.7 920.1 -------- -------- -------- Less: hybrid equity coupon payments 46.5 46.6 98.5 -------- -------- -------- Reported Profit/(Loss) After Tax attributable to ordinary shareholders (1) (59.0) 1,409.1 821.6 -------- -------- -------- Reported earnings per share (including discontinued operations) (pence) (5.7) 137.9 81.3 -------- -------- -------- (1) After distributions to hybrid capital holders Dividend per Share Mar 20 Mar 19 Mar 18 -------- -------- -------- Interim Dividend pence 24.0 29.3 28.4 -------- -------- -------- Final Dividend pence 56.0 68.2 66.3 -------- -------- -------- Full Year Dividend pence 80.0 97.5 94.7 -------- -------- -------- Segmental EBITDA results are included in note 5 (c) to the Summary Financial Statements.Operating profit performance 2019/20 SSE Group Mar 20 Mar 19 Mar 18 Business-by-business segmental adjusted EBIT / Adjusted Operating Profit analysis GBPm GBPm GBPm SSEN Transmission 218.1 252.1 195.6 -------- -------- -------- SSEN Distribution 356.3 401.3 402.2 -------- -------- -------- Electricity networks total 574.4 653.4 597.8 -------- -------- -------- Investment in SGN 202.3 176.8 165.3 -------- -------- -------- Economically-regulated networks total 776.7 830.2 763.1 -------- -------- -------- SSE Renewables 567.3 455.9 475.9 -------- -------- -------- Thermal Generation 152.7 (22.3) 107.8 -------- -------- -------- Gas Storage 3.7 (5.7) (6.5) -------- -------- -------- Thermal Energy Total 156.4 (28.0) 101.3 -------- -------- -------- Business Energy (GB) 9.2 51.6 64.2 -------- -------- -------- SSE Airtricity (NI and Ire) 48.8 38.6 33.0 -------- -------- -------- Customer Solutions Total 58.0 90.2 97.2 -------- -------- -------- Energy Portfolio Management (137.4) (284.9) 46.0 -------- -------- -------- Gas Production Contracts 77.1 - - -------- -------- -------- Energy Portfolio Management and Investments (60.3) (284.9) 46.0 -------- -------- -------- Enterprise 8.1 31.8 26.9 -------- -------- -------- Corporate Unallocated (17.8) (6.5) 10.4 -------- -------- -------- Total Adjusted Operating Profit 1,488.4 1,088.7 1,520.8 -------- -------- -------- Adjusted Net Finance Costs 465.0 403.6 367.5 -------- -------- -------- Adjusted PBT (continuing operations) 1,023.4 685.1 1,153.3 -------- -------- -------- Discontinued Operations: -------- -------- -------- Gas Production Assets - held for sale 25.8 48.9 34.0 -------- -------- -------- SSE Energy Services - sold Jan 2020 32.7 89.6 278.7 -------- -------- -------- SSE Group Mar 20 Mar 19 Mar 18 Business-by-business segmental GBPm GBPm GBPm REPORTED EBIT / Operating Profit / (Loss) analysis SSEN Transmission 218.1 252.1 195.6 -------- -------- -------- SSEN Distribution 351.9 401.3 402.2 -------- -------- -------- Electricity Networks Total 570.0 653.4 597.8 -------- -------- -------- Investment in SGN 80.8 85.1 71.8 -------- -------- -------- Economically-regulated networks total 650.8 738.5 669.6 -------- -------- -------- SSE Renewables 459.9 1,242.9 452.0 -------- -------- -------- Thermal Generation 15.5 (50.6) 71.4 -------- -------- -------- Gas Storage (1.4) (5.7) (6.5) -------- -------- -------- Thermal Energy Total 14.1 (56.3) 64.9 -------- -------- -------- Business Energy (GB) (18.5) 51.6 64.2 -------- -------- -------- SSE Airtricity (NI and Ire) 42.8 38.6 26.9 -------- -------- -------- Customer Solutions Total 24.3 90.2 91.1 -------- -------- -------- Energy Portfolio Management (171.6) (613.1) (43.1) -------- -------- -------- Gas Production Contracts 77.1 - - -------- -------- -------- Enterprise (2.0) 31.8 15.1 -------- -------- -------- Corporate Unallocated (89.2) 179.6 (21.5) -------- -------- -------- Total Reported Operating Profit 963.4 1,613.6 1,228.1 -------- -------- -------- Reported Net Finance Costs 375.8 313.3 285.0 -------- -------- -------- Reported PBT (excluding held for sale & discontinued operations) 587.6 1,300.3 943.1 -------- -------- -------- Discontinued Operations: -------- -------- -------- Gas Production - held for sale (265.5) 78.6 (70.7) -------- -------- -------- SSE Energy Services - sold Jan 2020 (205.0) 35.3 221.8 -------- -------- -------- A reconciliation of adjusted operating profit by segment to reported operating profit by segment can be found in Note 6 (ii) to the Summary Financial Statements.Operating profitAdjusted operating profit/losses in SSE's business segments for the twelve months to 31 March 2020 are as set out below; comparisons are with the twelve months to 31 March 2019 unless otherwise stated.SSEN Transmission: Adjusted and reported operating profit reduced to GBP218.1m, compared to GBP252.1m, reflecting the phasing of allowed revenue and increased depreciation costs relating to on-going capital expenditure.SSEN Distribution: Adjusted operating profit decreased to GBP356.3m from GBP401.3m, reflecting a net increase in costs including: increased depreciation; and higher costs associated with supplying Shetland. Despite lower than expected volumes during the year, SSEN Distribution's collected revenue in 2019/20 was still GBP37m higher than allowed revenue; and tariffs in 2021/22 will be adjusted down to reflect this. Separately, it is expected that GBP23m of allowances which had been anticipated to be allowed in 2019/20 will now be reflected in increase in allowed revenue in 2021/22. In addition to the above, there was an exceptional charge of GBP4.4m to reported profit for restructuring expenses.Investment in SGN: adjusted operating profit was GBP202.3m, compared to GBP176.8m, mainly due to the phasing of allowed revenue, totex out-performance and additional commercial income.The increases to adjusted operating profit were offset by a GBP31.0m increase in SSE's share of SGN interest and tax. As a result, reported operating profit was GBP80.8m compared to GBP85.1m.SSE Renewables: adjusted operating profit was GBP567.3m compared to GBP455.9m, mainly due to a significant increase in output of electricity as a result of more favourable weather conditions and a net increase in wind energy capacity in operation over the period (largely from Beatrice offshore wind farm). This result for 2019/20 also includes GBP26.5m of GB Capacity Market payments in respect of the 18 months to March 2020, compared to just GBP2.7m in 2018/19. In addition, as outlined in the 2019/20 Interim Financial Statements, SSE changed the estimated useful life of its onshore wind farms from 20 to 25 years. The financial impact of this in 2019/20 was to reduce the depreciation charge, increasing the adjusted and reported operating profit of GBP30.2m.Reported operating profit was GBP459.9m, compared to GBP1,242.9m, mainly due to the exceptional gain on partial disposal of Stronelairg, Dunmaglass and Clyde windfarms in 2018/19. The Group's share of joint venture interest and tax also increased by GBP61.9m compared with the previous year as a result of those windfarms now being joint ventures, and interest from Beatrice as the windfarm was fully commissioned.Thermal Generation: adjusted operating profit was GBP152.7m, compared to an adjusted operating loss of GBP(22.3)m, mainly due to the GBP125m of GB Capacity Market payments received in respect of the 18 months to March 2020, compared to GBP13m received in 2018/19. Also reflected in 2019/20 results is improved portfolio optimisation of gas-fired generation assets. There was also an increase in multifuel adjusted operating profit, to c.GBP30m from c.GBP19m reflecting the start of commercial operation of the new Ferrybridge Multifuel 2 from December 2019 onwards.Reported operating profit was GBP15.5m, compared to a loss of GBP50.6m, due to the above factors and the exceptional charge incurred in 2019/20 at Fiddlers Ferry of GBP112.3m as the plant consumed its remaining coal stocks until its closure in March 2020.Gas Storage: adjusted operating profit was GBP3.7m, compared to an adjusted operating loss of GBP(5.7)m, reflecting operation of the plant on a merchant basis and better market conditions.Reported operating loss was GBP(1.4)m as a result of the change in accounting policy to revalue gas stocks held in storage at year end to fair market price. This resulted in a GBP5.1m downward valuation at 31 March 2020.SSE Business Energy: adjusted operating profit was GBP9.2m, compared to GBP51.6m, as a result of higher bad debts and other indirect costs, along with increased third-party intermediary and GB Capacity Market charges.The business also recorded an exceptional charge of GBP27.7m related to bad debts arising from coronavirus. As a result, the business recorded a reported operating loss of GBP(18.5m).SSE Airtricity: adjusted operating profit was GBP48.8m, compared to GBP38.6m, reflecting slightly improved margins.SSE Airtricity also recorded an exceptional charge of GBP6.0m for a provision against bad debts arising as a result of coronavirus. Reported operating profit was therefore GBP42.8m.Energy Portfolio Management (EPM): adjusted operating loss was GBP(137.4)m, slightly more than expected due to an effect of the sale of SSE Energy Services and the impact of Sterling weakness. This is compared to an adjusted operating loss of GBP(284.9)m in the same period last year. As previously stated, and in line with implementation of SSE's Approach to Hedging, EPM is expected to earn a small adjusted operating profit from 20/21 onwards through service provision to those SSE businesses requiring access to the energy markets.Reported operating loss was GBP(171.6)m compared to GBP(613.1)m as a result of the above reduction in adjusted operating loss, in addition a smaller net re-measurement loss on open and delivered contracts was recorded of GBP34.2m, compared to GBP328.2m in prior year.SSE Enterprise: adjusted and reported operating profit was GBP8.1m, compared to GBP31.8m, mainly reflecting the reduction in SSE's share of SSE Telecoms' profits following the sale of 50% of the business in March 2019, together with some impact on revenues from coronavirus and increased contract provisioning. As a result of SSE Telecoms becoming a joint venture, an GBP8.3m share of interest and tax was included in reported operating profit, together with depreciation on fair value uplifts of GBP1.8m, resulting in an overall reported operating loss of GBP(2.0)m.Corporate Unallocated: adjusted operating loss of GBP(17.8)m compared to GBP(6.5)m reflecting the results of a change in SSE's cost allocation model following the sale of SSE Energy Services.Reported operating loss was GBP(89.2)m compared to a profit of GBP179.6m mainly due to the exceptional gain on sale recorded on the disposal of SSE Telecoms in the prior year and current year IT impairments following the sale of SSE Energy Services.Investment in Gas Production (held for sale): while the assets of this business are held for sale, the benefit of an internal gas hedge is being retained within the SSE Group due to the structure of the proposed disposal, which is unhedged effective from 1 April 2019. As a result, in 2019/20:-- The internal gas hedge being retained contributed an adjusted and reported operating profit of GBP77.1m.-- The assets held for sale had an adjusted operating profit of GBP25.8m, which is excluded from SSE's adjusted results. As the business was held for sale, this operating profit excludes depreciation charges of GBP61.6m from September 2019 onwards.-- If reported together, and including depreciation, Gas Production would show a total operating profit of GBP41.3m; compared to an adjusted and reported operating profit of GBP48.9m in the same period in 2018/19.The reported operating loss was GBP265.5m in 2019/20, compared to a reported operating profit of GBP78.6m in the prior year, primarily due to an exceptional impairment of GBP291.3m being recognised in 2019/20 to reduce the carrying value of the business to its expected recoverable value from disposal.In 2018/19 there was also an exceptional reversal of previous impairments of GBP29.7m due to the estimated gas reserves at that time.SSE Energy Services (discontinued operations): The sale of SSE Energy Services was completed on 15 January 2020. This business earned an adjusted operating profit of GBP32.7m in 2019/20 up to the date of disposal. On disposal, SSE recorded an exceptional loss of GBP226.9m in discontinued operations (an update to the expected loss on disposal impairment provision of GBP489.1m, published in the September 2019 interim results). In addition, exceptional restructuring costs of GBP10.8m were incurred in 2019/20 prior to disposal.Investment and Capital Expenditure Investment and Capex Summary (adjusted) Mar 20 Mar 20 Mar 19 Mar 18 Share % GBPm GBPm GBPm Electricity Transmission 24% 329.0 344.0 434.2 --------- -------- -------- -------- Electricity Distribution 27% 364.9 340.7 326.1 --------- -------- -------- -------- Electricity Networks total 51% 693.9 684.7 760.3 --------- -------- -------- -------- SSE Renewables 26% 342.7 326.1 301.7 --------- -------- -------- -------- Thermal Generation 13% 177.0 187.7 89.0 --------- -------- -------- -------- Gas Storage 0% 0.2 0.7 1.8 --------- -------- -------- -------- Thermal energy total 13% 177.2 188.4 90.8 --------- -------- -------- -------- Customer Solutions total 0% 0.3 1.2 1.5 --------- -------- -------- -------- Enterprise 4% 57.4 19.8 61.9 --------- -------- -------- -------- Corporate 6% 85.9 72.2 110.5 --------- -------- -------- -------- Gas Production - - 27.9 65.5 --------- -------- -------- -------- SSE Energy Services - - 102.6 110.8 --------- -------- -------- -------- Total investment and capital expenditure (adjusted) 100% 1,357.5 1,422.9 1,503.0 --------- -------- -------- -------- Gas Production Assets are held for sale and Energy Services was disposed of on 15 January 2020. During 2019/20 the Group incurred GBP53m of capital expenditure within its Energy Services business (mainly smart meter related) and GBP44.6m, in Gas Production. However, this capital expenditure has been excluded from SSE's adjusted Investment and Capital Expenditure, as the Group incurred an exceptional loss on disposal of SSE Energy Services and an exceptional impairment in Gas Production.Investing efficiently in energy assets that the UK and Ireland need in 2019/20During the year to 31 March 2020, SSE's investment and capital expenditure (excluding SSE Energy Services and Gas Production) totalled GBP1,357.4m, including GBP1,036.6m (or 76%) invested in the core businesses of SSEN Transmission, SSEN Distribution and SSE Renewables.Total investment and capital expenditure in the year included the following:-- SSEN Transmission investment and capital expenditure of GBP329.0m included work on the 275kV line between Knocknagael and a new substation at Tomatin, work on the 275kv line between Inveraray and Crossaig plus the construction of new substations at Fort Augustus, Rothienorman and New Deer, to enable renewable energy projects to connect to the network.-- SSEN Distribution investment and capital expenditure of GBP364.9m consisted primarily of asset replacement and reinforcement projects, including the replacement of subsea cables and several overhead line circuits.-- SSE Renewables investment in renewable energy in GB and Ireland totalled GBP342.7m and included spend on Seagreen (GBP166m) and Doggerbank (GBP58m); along with spend on Beatrice, Gordonbush extension, Viking Wind Farm and upgrades to hydro-electric schemes.-- SSE's flexible thermal gas-fired power stations will play a key part in the transition to a low-carbon economy and investment in thermal generation totalled GBP177.0m (13% of the SSE Group total) in the year, including the Keadby 2 and Ferrybridge Multifuel 2 projects, along with development spend on the Slough Multifuel project.-- In addition, GBP57.4m was invested in SSE Enterprise, predominantly in Telecoms, and GBP86.0m in SSE Group services, which was mainly on shared IT to support the work of business units.SSE's Hedging Position at 31 March 2020To aid understanding, the following hedging summary should be read in conjunction with the full 'SSE's Approach to Hedging' document published in November 2018 and the subsequent update published in May 2019.https://sse.com/investors/reportsandresults/media/t14jx1up/sse-approach-to-hedging-may2019-update.pdfhttps://sse.com/media/540265/SSEs_approach_to_hedging_November_2018.pdfRenewables - GB Wind and Hydro Hedging PositionSince March 2019, as part of preliminary and interim results, SSE has included its hedge position in relation to its GB Wind and Hydro generation.The following table includes an update as at 31 March 2020, showing the hedge position for full years 2020/21, 2021/22 and 2022/23. 2018/19 2019/20 2020/21 2021/22 2022/23 Wind Expected volume TWh 4.5 4.5 4.5 4.6 4.6 ===================== ======== ======== ======== ======== ======== Volume hedged % 100% 100% 100%* 61% 19% ============================= ======== ======== ======== ======== ======== Hedge price GBP/MWh GBP39 GBP39 GBP46 GBP48 GBP45 ===================== ======== ======== ======== ======== ======== Hydro Expected volume TWh 3.4 3.5 3.4 3.4 3.4 ===================== ======== ======== ======== ======== ======== Volume hedged % 100% 100% 100%* 61% 18% ============================= ======== ======== ======== ======== ======== Hedge price GBP/MWh GBP39 GBP43 GBP48 GBP50 GBP45 ============================= ======== ======== ======== ======== ======== For comparison purposes, for 2018/19 and 2019/20, volumes are based on average expected output, and the contracted hedge price is at the beginning of each financial year. The table excludes the additional income streams outlined in the May 2018 hedging paper update (ie BM activity, ROCs, ancillary services, cap mech & shape variations) and income relating to Irish Wind, pumped storage and CfD income for Beatrice.As set out in 'SSE's Approach to Hedging', in order to account for the effect of the 'wind capture price' SSE's target is to hedge only 85% of its anticipated wind energy output for the coming 12 months. Historic hedges in place at 31 March 2020 resulted in 100% of 2020/21 anticipated wind energy output being hedged.*Since then, in light of low market prices for electricity, and the possibility of reduced windfarm availability due to coronavirus lockdown impacts, SSE Renewables has executed trades to reduce the percentage of wind volume hedged for the remainder of 2020/21 to 85%, bringing it in line with its target.Business Energy: supplies electricity and gas to business and public sector customers. Sales to contract customers are 100% hedged: at point of sale for fixed contract customers; upon instruction for flexi contract customers; and on a rolling hedge for tariff customers.Business Energy's sales demand volumes have been adversely impacted by the coronavirus lockdown and the extent to which this will impact customers' consumption and viability in the medium term remains uncertain. To reflect this expected reduction in demand, Business Energy have reduced hedged volumes for 2020/21, incurring a mark-to-market loss that will be recognised in 2020/21 and which forms part of the coronavirus impacts on Customer Solutions' operating profit estimated between GBP60m and GBP110m before mitigation. Further adjustments to hedged volumes may be required as more evidence of the medium-term impact on customers' consumption becomes available.Thermal: in the 12 months prior to delivery, SSE aims to hedge all of the expected output of its CCGT assets, having progressively established this hedge over the preceding 24 months. Hedging activity depends on the availability of sufficient market depth and liquidity, which can be limited, particularly for periods further into the future.Gas Storage: is being commercially operated after the annual auction to offer gas storage capacity contracts, held in April 2020, resulted in no contracts being secured. The business continues to manage its exposure to changes in the spread between summer and winter prices, market volatility and plant availability whilst also making capacity available, at fair value, to interested third parties.Gas Production: at 31 March 2020, SSE's E&P assets were hedged to around 20% of gas output and 60% of oil exposure for 2020/21 and 2021/22. As the E&P business remains held for sale on an unhedged basis, this position has been kept under review and, in June 2020, SSE reversed these gas hedges resulting in a mark-to-market gain that will be recognised in financial results in coming years.Energy Portfolio Management (EPM): provides the route to market and manages the execution for all of SSE's commodity trading outlined above (spark spread, power, gas, carbon and oil). This includes managing market conditions and liquidity and reporting and monitoring net Group exposures.Adjusted Earnings per ShareAdjusted earnings per share - including coronavirus adjustmentsTo monitor its financial performance over the medium term, SSE reports on its adjusted earnings per share measure. This measure is calculated by excluding the charge for deferred tax, interest costs on net pension liabilities, exceptional items, depreciation on fair value adjustments and the impact of certain re-measurements.SSE's adjusted EPS measure provides an important and meaningful measure of underlying financial performance. In adjusting for depreciation on fair value adjustments, non-recurri
07/6/2020
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ariane: FWIW Https://www.fool.co.uk/investing/2020/06/07/the-centrica-share-price-is-dirt-cheap-heres-what-id-do-now/ The Centrica share price is dirt-cheap: here’s what I’d do now Roland Head | Sunday, 7th June, 2020 The Centrica (LSE: CNA) share price has fallen by 55% this year. Thanks to the stock market crash, this utility stock has now lost 90% of its value since September 2013. This humbling collapse was capped last week when Centrica was demoted from the FTSE 100 to the FTSE 250. There’s clearly some risk that Centrica has become a value trap — a stock that’s cheap for good reason. However, I don’t think this is true. As I’ll explain, I believe Centrica faces temporary problems that can be fixed. After this, I expect it to become a much more valuable business. m to turn today’s market uncertainty to your advantage. Click here to claim your FREE copy now! Market leader Centrica’s main UK business is British Gas. This division supplies gas, electricity and home services, such as boiler maintenance and repairs. There’s also a smaller home solutions business in the UK, which sells connected home products, under brands such as Hive. Centrica’s battered share price makes it easy to forget how dominant British Gas still is. At the end of 2019, this business had 9.2m customers in the UK, each taking an average of two services. This means around one-in-seven of the UK population are British Gas customers. Based on the average UK household size of two people, this suggests it supplies around one quarter of UK households. This puts British Gas on a level with heavyweight consumer brands such as Tesco and Next — companies that everyone knows and many of us use. Why I think the Centrica share price is too cheap Led by British Gas, Centrica’s consumer businesses generated an adjusted operating profit of £505m in 2019. Alongside this, the group’s business division made a profit of £217m. This gives a total operating profit from energy supply and related services of £722m. This gives the group an earnings yield — a measure of profit used by business buyers — of more than 10%. I usually look for an earnings yield of at least 8%, so the Centrica share price looks cheap to me on this measure. Unfortunately, this isn’t the whole story. Centrica has a couple of problems. The first is its upstream division. This includes an oil and gas production business, plus part-ownership of the Hunterston B and Dungeness B nuclear power stations. These operations are up for sale, but this year’s market crash has delayed this process. However, I’m confident a deal will be done eventually. This should allow the group to cut its debt levels and become a consumer business with less exposure to volatile commodity prices. I think that could push Centrica shares much higher. Centrica’s share price of around 40p means the stock currently trades on just nine times 2020 forecast earnings. This figure falls to just 6.4 for 2021. The shares probably deserve to be cheap at the moment, but I don’t expect this to last forever. I think investors should look at home repair specialist Homeserve to see what could be achieved with the British Gas brand. Homeserve only supplies services, not energy. Its profits have doubled in five years and Homeserve shares currently trade on 30 times forecast earnings. In my view, British Gas’ growing services business is well positioned to take a big slice of this market. That’s why I rate Centrica as a bargain buy at current levels. Roland Head owns shares of Centrica.
Centrica share price data is direct from the London Stock Exchange
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