Energy giant Centrica 's CNA) first half was far from plain sailing. Depressed commodity prices and problems at its gas storage facility - the largest in the UK - left overall adjusted operating profit down 12 per cent on the comparable period at £853m. In the upstream business, exploration and production operating profits dropped by 17 per cent, while central power-generation profits were less than half of that a year ago.
Customer-facing businesses faced their own set of challenges. Record warm weather in North America during the first half made for a tough comparison with an unusually cold first half in 2015. Customers had less need to heat their homes and operating profits from the North American energy supply business halved to £95m. And competition at home meant British Gas saw a fall in customer numbers.
Centrica's cost-cutting drive mitigated the impact somewhat. But adjusted earnings per share still dropped 17 per cent to 9.8p (reported figures were higher due to a £969m exceptional boost from revalued energy contracts). Pleasingly, capital discipline helped lift adjusted operating cash flow by a fifth to £1.4bn.
On Brexit, chief executive Iain Conn saw no immediate impact on Centrica. However, he did flag up broader implications, noting that the UK is increasingly an energy importer and price-setting takes place in the European Union, where Britain is "no longer sitting around the table".
Analysts at Goldman Sachs expect EPS of 15.1p for the full year, compared with 17.1p in 2015.
| CENTRICA (CNA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 244.2p | MARKET VALUE: | £13.3bn | |
| TOUCH: | 244.1-244.3p | 12-MONTH HIGH: | 279p | LOW: 183p |
| DIVIDEND YIELD: | 4.9% | PE RATIO: | NA | |
| NET ASSET VALUE: | 48p* | NET DEBT: | 134% | |
| Half-year to 30 June | Turnover (£bn) | Pre-tax profit (£bn) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 15.5 | 1.21 | 21.1 | 3.57 |
| 2016 | 13.4 | 1.63 | 22.2 | 3.60 |
| % change | -13 | +35 | +5 | +1 |
Ex-div: 13 Oct Payment: 24 Nov *Includes intangible assets of £4.39bn, or 80p a share | ||||
