Centrica Trading Statement

[idpickering]

In advance of its 2017 Annual General Meeting to be held at 2pm today, Centrica plc is providing an update on its performance and outlook. Overall, the Company continues to execute on all aspects of its strategy announced in July 2015 and is making good operational progress, building on the momentum generated in 2016.

Operating performance in the year to date has been largely as expected with most operational inputs and parameters in line with plan. As part of this, Centrica continues to make good progress on its cost efficiency programme. However, warmer than normal weather in the year to date has resulted in lower than planned consumption in the UK and North America, while UK wholesale oil, gas and baseload power prices have all fallen since Centrica’s Preliminary Results in February. Centrica will continue to focus on driving underlying performance improvement and cost efficiencies to help mitigate the negative impact of these changes in the external environment. In addition, we announced in April that the Rough gas storage asset would be unavailable for injection during the 2017/18 storage year.

Overall, the Company is on track to achieve the 2017 targets set out in its Preliminary Results announcement:
• Adjusted operating cash flow is expected to be above £2bn.
• Group capital investment, including small acquisitions of less than £100m each, is expected to be no more than £1bn, including E&P capex of around £500m.
• Incremental revenue investment of around £100m in growth areas.
• Efficiency savings of £250m expected in addition to 2016 savings of £384m, as part of the Group’s £750m per annum cost efficiency programme.
• Like-for-like direct headcount reduction of around 1,500 expected during the year.
• Closing net debt is expected to be in the £2.5-£3.0bn range.

2017 financial performance remains subject to the usual variables of commodity prices, weather and asset performance over the balance of the year and the impact of an uncertain competitive and regulatory environment for the UK energy supply business.

http://www.investegate.co.uk/centrica-p ... 0000Z2914/

[idpickering]

Up a nice 2.2% as I type for a change. Come on, own up. Who's buying amongst us today?

[Paultry]

I bought 1,000 to add to the 4,000 already in the isa last Friday. Paul

[idpickering]

I bought 1,000 to add to the 4,000 already in the isa last Friday. Paul

Thanks for that Paultry.

Ian.

[idpickering]

May vows to cap energy bill increases if Tories win election

The PM's promise to protect gas and electricity customers from "sudden and unjustified" rises will be part of the Tory manifesto

http://news.sky.com/story/may-vows-to-c ... n-10869652

CNA down 4%, and SSE down 2.2% as I type.

A further buying opportunity perhaps?

[toofast2live]

The dividend is under threat as the CEO hinted when he didn't rule out any options. Why invest in a business where there is the probability of a dividend cut due to Socialist policies implemented by populist Tories.

Who'd have thought it. 1970s price controls from the party that gave us Maggie.

[Bouleversee]

May vows to cap energy bill increases if Tories win election

The PM's promise to protect gas and electricity customers from "sudden and unjustified" rises will be part of the Tory manifesto

http://news.sky.com/story/may-vows-to-c ... n-10869652

CNA down 4%, and SSE down 2.2% as I type.

A further buying opportunity perhaps?

Not so far as I am concerned. Am losing more than enough on them already.

[idpickering]

May vows to cap energy bill increases if Tories win election

The PM's promise to protect gas and electricity customers from "sudden and unjustified" rises will be part of the Tory manifesto

http://news.sky.com/story/may-vows-to-c ... n-10869652

CNA down 4%, and SSE down 2.2% as I type.

A further buying opportunity perhaps?

Not so far as I am concerned. Am losing more than enough on them already.

Hi Bouleversee,

For whatever it's worth from a HYP perspective, I'm down 15% in capital value terms on United Utilies, my average purchase price being 235p. The capital value doesn't faze me much, as I realise stocks go up and down. We have no control of that, in fact Carillion are up 2.6% currently, so what do I know? If the dividend from Centrica is left alone, I'd have no issue topping up further.

Ian.

[toofast2live]

But centrica and have already "rebased" their dividend in the recent past.

I reckon NG is the best of the Utes.

[kempiejon]

Centrica have reduced my income in 3 of the past few years, they might offer over 5% yield. SSE on the other hand offer 6% or so have mostly increased my income and doubled the dividend in the past decade.

[idpickering]

I do get your reluctance guys, and I do agree that National Grid are the best of the bunch. Sse plc just seem to be a dividend machine and very keen to continue being so which I like. The later has hardly budged on the capital gains front, not that is what we're looking for I know, with National Grid quietly driving forward on all fronts, which I really like . I agree Centrica are the weakest baby of them, but as I said, provided they don't mess with the dividend going forward, I would have no problem buying more, and averaging down my purchase price in the process too.

Ian.

[kempiejon]

And rather typically if NG. was the better bet that was the one I eliminated last time I looked over 5 years the sp and dividend have both been on a fair climb. Still as I said no more utes for me, Capita or Provident Financial might be in the frame, they and LRE Lancashire Holdings are the first few companies thrown out by HYPTUSS not eliminated for at least one of my conditions. With Lancashire, although the regular dividend appears low yielding and it's been static for as long as they've been paying, there are some mighty specials each year such that I'm getting about 10% yield on my money.

[idpickering]

And rather typically if NG. was the better bet that was the one I eliminated last time I looked over 5 years the sp and dividend have both been on a fair climb. Still as I said no more utes for me, Capita or Provident Financial might be in the frame, they and LRE Lancashire Holdings are the first few companies thrown out by HYPTUSS not eliminated for at least one of my conditions. With Lancashire, although the regular dividend appears low yielding and it's been static for as long as they've been paying, there are some mighty specials each year such that I'm getting about 10% yield on my money.

Pardon my ignorance Kempiejon, what is this HYPTUSS I keep reading about please? I hold Provident, and am glad to have them on board. I know nothing about Capita, and Lancashire.

Regards,

Ian.

[Gengulphus]

Frankly, and at the risk of being a bit over-political for the board, this strikes me as an instance of a favourite political trick: offering the electorate something they've already got, just using different words to describe it and maybe some token tightening-up of the exact way it's done. Utility bills are already effectively capped by the system of 5-yearly regulatory reviews; I doubt that the new Tory system will change that very much...

Gengulphus

[Gengulphus]

Pardon my ignorance Kempiejon, what is this HYPTUSS I keep reading about please?

You might recognise it more easily if the acronym is expanded: the HYP Top-Up SpreadSheet.

For more information, see the Financial Software board.

Gengulphus

[kempiejon]

Pardon my ignorance Kempiejon, what is this HYPTUSS I keep reading about please? I hold Provident, and am glad to have them on board. I know nothing about Capita, and Lancashire.

Regards,

Ian.

Ian, HYP - TUSS top up spread sheet as per financial software board. A Macro enabled spread sheet that applies TJH's ranking by yield and weighting to highlight holdings to shortlist for more money.
Capita are another pesky support co, famous for government contracts like congestion charge and Gas Safe registration (was CORGI) a couple of profit warnings before Christmas last year, Lancashire are specialist insurers.

[Dod1010]

Frankly, and at the risk of being a bit over-political for the board, this strikes me as an instance of a favourite political trick: offering the electorate something they've already got, just using different words to describe it and maybe some token tightening-up of the exact way it's done. Utility bills are already effectively capped by the system of 5-yearly regulatory reviews; I doubt that the new Tory system will change that very much...

Gengulphus

I agree with that and not only that but the electricity companies are being given plenty of timely warnings to get their PR departments and lobbyists up and running so I am quite relaxed about the so called price cap. On the subject though of Centrica it shows all the signs of being the weakest of the electricity companies. Instead, I hold and have held SSE for a very long time and National Grid more recently.

Dod

[Arborbridge]

Pardon my ignorance Kempiejon, what is this HYPTUSS I keep reading about please?

Ian, as others have said, it only a jargon name for the Top up spreadsheet. If you haven't tried it, I can thoroughly recommend it. Once you put all your holdings in it, it is very easy to use and helps with Topup decisions.

Which reminds me: I am about to run it tonight for tomorrow's cheap dealing day at A J Bell.

Arb.

[idpickering]

Pardon my ignorance Kempiejon, what is this HYPTUSS I keep reading about please?

Ian, as others have said, it only a jargon name for the Top up spreadsheet. If you haven't tried it, I can thoroughly recommend it. Once you put all your holdings in it, it is very easy to use and helps with Topup decisions.

Which reminds me: I am about to run it tonight for tomorrow's cheap dealing day at A J Bell.

Arb.

Thanks for that Arb, and you other guys for pointing me in the right direction re HYPTUSS.

Ian.

[Bouleversee]

May vows to cap energy bill increases if Tories win election



http://news.sky.com/story/may-vows-to-c ... n-10869652

CNA down 4%, and SSE down 2.2% as I type.

A further buying opportunity perhaps?

Not so far as I am concerned. Am losing more than enough on them already.

Hi Bouleversee,

For whatever it's worth from a HYP perspective, I'm down 15% in capital value terms on United Utilies, my average purchase price being 235p. The capital value doesn't faze me much, as I realise stocks go up and down. We have no control of that, in fact Carillion are up 2.6% currently, so what do I know? If the dividend from Centrica is left alone, I'd have no issue topping up further.

Ian.

Ian - I'm down over 32% on Centrica and nearly 25% on CLLN, but I'm not supposed to care.