I basically agree. If what Conn has said is true, Centrica is looking to change the nature of its business; less of the exploration and 'upstream' activities and a greater focus on domestic supply markets. This might imply that Conn feels that oil prices (and perhaps general wholesale energy prices including gas) might be depressed for a considerable period. From the results, it appears that there is quite a lot of scope for profit in supply to UK domestic markets but less so for production. Media commentary yesterday indicated that although the 'big six' (of which BG is the biggest) currently supply more than 90% of the domestic market, this proportion is gradually falling as smaller suppliers gain market share. However, BG still has a lot of market power but needs to address its changing market position because this is evidently where profits are to be made. To make these changes, Centrica needs to retain a lot of the cash that it would normally distribute as a dividend. To that end, CNA is a share for the longer- term and if you've managed to get in around the current price, then there is a fair bit of upside.
If you have bought centrica shares to make a quick profit your going to be out of luck for the next five years or so dwindling oil prices have seen to that, and with the CMA still investigating the utility companies, Mr conn is playing a waiting game that has to be played just read press still claiming british gas can reduce their prices further although they have dropped them by 10% this year what the press should be saying is that the main share holders are the pension funds and fund managers who in turn pay these dividends to millions of people who are already taking a pension or future pensioners in other words we are all directly or indirectly share holders we have to stop knocking good British companies that turn a profit for the benefit of all, long term benefits are better than short term gain and I think Mr Conn so far is doing a good job.
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