Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Anyone have any details on this "Legacy Gas Contract" that is costing 100+ million / year?
Taking a loss on half my position here as doesn't seem to be going anywhere.
Will buy back in a week or so before the next trading update. The city clearly has no confidence in Centrica
I still believe this share is undervalued. The cash flow / market cap ratio suggest a share price of at least 85p by industry averages, and BG is the market leader in a lot of respects, with very little net debt.
But it just can't seem to break 60p. I think the city has lost all confidence in Centrica and probably the energy market in general.
I am going to hold out to see if a crypto / NASDAQ correction pushes some funds towards value investing and if not I think I'll sell and take some other opportunities. Already missed the boat on a couple.
Insight appears to have a broad skillset and some promising client stories. Tempted to allocate a few % of my portfolio here
most of the board are new
Deep into the annual report, free cash flow from operating activities (excl. Direct Energy) was 0.7bn in 2020.
I am sure there have been some accounting measures taken to play down profits this year.
£0.7bn * 12 (industry average P/E) works out about 130p per share
Only way is up from 55p imo
In previous Centrica reports, British Gas consumer has been split out from British Gas Business.
I can't see this split anywhere in the report, it seems to be combined into "British Gas"? I was hoping to see how much the increase in WFH was offset by business closures, in figures.... hmmmm
i've seen a few negative comments about this interview, questioning the strategic direction of the company.
IMO i think the right steps have been made, simplify core business, reduce debt, resolve internal HR structure. Once this is done we are left with a profitable (!) business with capital capacity to expand into new markets. I don't think anyone knows what will become the cash cow for green energy, but exploring hydrogen & EV infrastructure is a good start at this stage.
Any other thoughts on what the strategic direction could be?
any update?
Surely this winter must be seeing significant increases in residential energy usage compared to usual.
Literally millions of households are using heating and electricity for an extra 8 hours/day, compared to previous years of being in schools and offices (which must be much more efficient, 50 individual homes vs 50 people in one office).
I expect energy companies to downplay this somewhat, but it still should be noticeable in the results. Has anybody seen results from other utilities?
Agreed there are problems, but IMO they were known about and priced in to the share price pre-covid. (80-90p)
It feels like new management are addressing business structure and in the last few years there must have been more exits from the market than entrants.
I also think these utility firms are downplaying the benefits from increased residential energy usage this year.
The more I think about it, the more crazy this valuation seems. Centrica have just received £2.6 billion in cash - and its market valuation is only £2.95 billion?! Effectively suggesting the largest energy provider in the UK is only worth 300 million? 2019 adjusted earnings are larger than that! What am I missing here?
No mention of residential energy usage? Can only assume this is due to the fact good news might further fuel current strike action?
The ( price / adjusted EPS ) ratio has averaged about 12 for the last decade or so and is similar across the industry by my basic researching.
If (!!)adjusted EPS is between 6-7p this year that would place centrica at about 80p.
Going forward, lower interest on debt will benefit, but bear in mind we are losing two business units with direct energy and hopefully spirit, meaning the only chance for growth is domestic customer increases.
what you are missing is that no institutional investors want to put any heavy investment into the energy market, and if they do, it will be only for a safe dividend (SSE for example). margin restrictions + price caps + dividend restrictions + threats of nationalisation = scary marketplace for large investment
Im hoping it's because it would be pretty bad timing to release an update suggesting cash flow improvements and a general positive outlook, which would add fuel to the union/strike fire . If it was a negative outlook, I would imagine releasing this would be beneficial to that cause.