Centrica suffered its worst single-day stock market loss on Thursday after the British energy supplier issued a profit warning because of problems at its North American business and reported hundreds of thousands of lost customers in the UK. Shares in the owner of British Gas fell more than 15 per cent to 138p following what Iain Conn, Centrica chief executive, admitted was a “disappointing” trading update. In the UK, where Centrica is the biggest energy supplier to households, the group shed 823,000 domestic customer accounts between the end of June and October. This followed a decision by British Gas in September to raise standard electricity prices by 12.5 per cent.
FT 23rd Nov 2017 read more »
Centrica’s chief executive was fighting to salvage his reputation last night after issuing a shock profit warning that triggered the biggest share price fall in the British Gas owner’s history. Iain Conn implored investors not to dismiss the company as unreliable, after analysts warned that management credibility was at an “all-time low” and forecast it could be forced to cut its dividend again. Mr Conn, who has presided over a halving in the energy company’s share price since taking the role in 2015, said he was deeply disappointed in the group’s performance as he cut profit guidance for the year to almost 20 per cent below market expectations. The biggest downgrade related to problems in its North American business supply division, including tough competition from new rivals and a £76 million accounting error. Britain’s biggest energy supplier also spooked investors by reporting the loss of 823,000 British Gas customer accounts in four months.
Times 24th Nov 2017 read more »