Centrica, the energy giant that owns British Gas, fell the furthest, down 8.2p, or 3.7pc, to 216.5p after HSBC cut the stock from “buy” to “hold” to reflect lower commodity and power prices. Ahead of its interim results on November 19, the bank thinks the FTSE 100 company will reduce its consensus earnings per share estimate for the year below the forecast 18p mark. Shares have fallen by around 35pc in the past two years, while its peer SSE has advanced 10pc in the same time period. Nevertheless, analysts still believe its dividend “remains secure”. HSBC also thinks the energy group has considerable scope to reduce costs, increase margins in British Gas and offer double-digit earnings growth by 2017.
Helx... low gas prices and Centrica's high debt level means that it needs good stable profits to sustain its debt levels. Higher interest rates will be progressively bad for them as debt payments will increase. Dividend been reduced and not likely to change for a while...altogether not that good investment return ...so investors are fleeing and going elsewhere for better returns .....maybe a cold winter will help things
At least they have a review in progress in order to try and improve returns
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