Things are not as dire as they might seem for Centrica.
FT 25th April 2020 read more »
Spare a thought, amid the oil price rout, for beleaguered Centrica, trying to flog its oil and gas exploration assets in a world where buyers have evaporated. The owner of British Gas “paused” its search for a buyer for its 69% stake in Spirit Energy a fortnight ago, but bowing to the inevitable has merely highlighted the financial strain across the group. Everything is going wrong at once. Power usage in the UK has plunged as offices and factories have shut. Bad debts will inevitably rise among small businesses and British Gas consumers. “Material headwinds are ahead,” said Jefferies’ analysts on Wednesday as they slashed their estimate of Centrica’s earnings by a mighty 30% for this year, 2021 and 2022. Disposing of Spirit would have eased the pressure, so what to sell instead? The 20% stake in the outage-prone nuclear generator British Energy also looks unsellable in the current climate. Try the North American supply instead, suggests Jefferies.
Guardian 22nd April 2020 read more »