Shares in Centrica tumbled 9% today after the UK energy supplier reported losing customers, lower nuclear power generation and a fall in output at its oil and gas division. The owner of Britain’s largest energy supplier British Gas said it would still meet its 2018 group targets that were set out in February. But that failed to reassure investors and its shares fell to 131.90 pence, their lowest level since March.
RTE 22nd Nov 2018 read more »
Reuters 22nd Nov 2018 read more »
Beware unintended consequences. Particularly in the thorny world of energy supply. The “Big Six” energy companies have never been happy about Theresa May’s plan to impose an energy price cap. Looking at Centrica’s trading update yesterday, it’s easy to see why. The new cap, in force from January, will now cost the owner of British Gas an unexpected £70m in the first quarter of next year. Centrica insists this is a “one-off” event, but there were other nasties lurking in its statement, including falling oil and gas production and lower output from its nuclear venture with EDF.
Telegraph 22nd Nov 2018 read more »
Cracked nuclear reactors, unplanned maintenance in the North Sea and the loss of hundreds of thousands of British Gas customers have forced Centrica to cut its profit outlook for this year. The biggest downgrades came from lower-than-expected oil and gas production from Spirit Energy and from extended shutdowns of Hunterston B and Dungeness B nuclear plants. Spirit had a series of “unplanned outages and operational issues”, including a breakdown at a backup power generator at its Morecambe Bay field, and a well drilled at its Chiswick field failed to boost production as planned. Checks by EDF have discovered more than 350 cracks in one of the ageing Hunterston reactors in North Ayrshire, pushing it over British safety limits, while sections of piping in the Dungeness reactors in Kent needed replacing.
Times 23rd Nov 2018 read more »