Latest news with #CentricaEnergy
Bloomberg
28-05-2025
- Business
- Bloomberg
Centrica Expands to New York With Build-Out of Gas Trading Unit
Centrica Plc is opening a trading office in New York that will underpin its growth in natural gas. Subsidiary Centrica Energy will establish its first US commodity-trading office aimed at building a physical gas business, Chief Executive Officer Chris O'Shea said in an interview. The sector is betting hundreds of billions of dollars that the fuel has a place in the world's energy mix through at least 2050.
Daily Mail
08-05-2025
- Business
- Daily Mail
British Gas owner's shares singed by spring sunshine demand slump
Centrica shares fell on Thursday after the British Gas owner flagged tough market conditions following warmer than usual spring weather. The business told shareholders the residential energy arm of British Gas 'has been impacted by warmer than normal weather in Q2'. Centrica said the unit is still expected to be within its £150million to £250million sustainable profit margin, but flagged issues elsewhere. Centrica Energy, an energy trading unit, is currently expected to be towards the bottom of medium-term profit guidance range for the year, 'due to more challenging market conditions in the gas & power trading segment'. In addition, Centrica Energy Storage+ is now expected to post an adjusted operating loss at the higher end of the indicated range of £50million to £100million. Centrica reaffirmed 2025 full year adjusted operating profit guidance ranges and revealed its intention to increase the full year 2025 dividend per share to 5.5p. However, Centrica shares fell 7.23 per cent or 11.50p to 147.60p on Thursday, having risen 10 per cent in the last year. In an update ahead of its annual general meeting today, Centrica also said it remained in talks with ministers about securing financial support to expand and revamp its Rough gas storage site. The facility in the North Sea is the largest of its kind in Britain, but Centrica had stopped filling it with natural gas last month amid concerns over its financial viability. The company usually starts injecting fuel into the Rough site by spring, but it had not done so by mid-April, according to reports. Centrica said on Thursday that it was running at a loss of between £50million and £100million, but that it was pressing ministers for more financial support. The group said: 'Constructive discussions are ongoing with the UK Government to secure a regulatory support mechanism that unlocks £2billion of investment to increase Rough's capacity and ultimately convert it into a hydrogen-ready storage facility.' While Britain does not rely heavily on gas storage compared to other countries, the Rough site comprises around half of its storage capacity and acts as a buffer when the weather is particularly cold and demand for gas increases. The company added that its energy trading arm, Centrica Energy, had taken a hit in the first part of this year as a result of 'more challenging market conditions in the gas and power trading segment'. It said it was 'closely monitoring the impact of potential global trade restrictions and will continue to do so. 'Given our diversified supply chains across key projects and operations, we do not currently anticipate any material impact on our business or financial results.' Russ Mould, investment director at AJ Bell, said: 'In recent years Centrica's gas and power arm has helped transform its prospects – delivering lots of cash which helped the company repair its balance sheet and return capital to shareholders. 'However, the boost to energy prices provided by the Russian invasion of Ukraine has now ebbed away and more recently, a warmer than usual spring has hit demand in its retail British Gas business.' He added: 'While Centrica is sticking with full-year guidance and current dividend plans, the company does note challenging conditions. It would not be a major surprise if it was forced to cut guidance, particularly given the expected second-half weighting for the current financial year.' On the group's energy storage operations, Mould said: 'Centrica expects heavy losses from its energy storage operations centred around the Rough gas field in the North Sea. It is looking for government support to increase capacity and convert it into a hydrogen-ready facility. 'While the Exchequer hardly has lots of money to throw around, the strategic importance of Rough as a buffer to help cover periods of high energy demand means Centrica may get a sympathetic hearing.'
