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400M US$ for the profitable Norway business. Looks like Centrica will have to retain the UK element of the business due to lack of interest for buyers. Run it into the ground then decom.
Quite a gap from the initial Centrica estimated 1BN sale expectation.
https://www.reuters.com/markets/deals/sval-energi-nears-deal-buy-spirit-energys-norwegian-business-sources-2021-11-18/
Announced by the Spirt Energy CEO this week at townhall, the Norway business will be sold off leaving Spirit Energy with just the UK / NL assets after no buyers identified. Presumably due to the UK / NL poor production history, ageing assets and decommissioning liabilities. No future developments, accusations or investments for Spirit Energy UK NL. Gas only infill wells where applicable, no oil additions. Looks like will be operated to rundown.
Shame as Centrica were banking on a cash influx from the complete sale of Spirit Energy and the removal of the decommissioning liability to boost the Centrica rebuild.
If they could achieve and maintain their production promises. Will Spirit Energy every achieved the original strap line production promised on the company formation, don’t hold your breath this year..
With Spirit Energy sale struggling to interest viable buyers the fear is Centrica will break off and sell the profitable portion of Spirit Energy namely the Norwegian business unit. Leaving Spirit Energy with just the UK poor production, aging assets and their large decommissioning liabilities on its books.
Centrica need to get shut of Spirit Energy to rebuild the Centrica brand.
The fear is Centrica break off and sell the profitable portion of Spirit Energy namely the Norwegian business unit. Leaving Spirit Energy with just the UK poor production, aging assets and their large decommissioning liabilities on its books. Will Spirit Energy every achieved the original strap line production promised on the company formation, don’t hold your breath this year..
CCS is a good thought, though no real heavy industry on the East Irish Sea side of the country. Centrica’s East coast Rough field and Easington terminal are better suited with the East coast carbon intense industrial and processing plants.
Lets see what the interim results brings.
True, however would mean retaining the 100% decommissioning liability too.
West of Shetland for Hurricane and Spirit Energy looks to be a dead duck. A poor bet by Spirit.
Need to complete the sale of the Upstream business Spirit Energy as well as Nuclear commitments before clear growth prevails. Lack of news in the AGM regarding the sale of either was not promising for an offload of those businesses anytime soon.
Disappointingly quiet on the sale of Spirit Energy. Presuming that lack of news is not positive for an liniment sale.
Don't believe all the spin and plumping up the chicken for a sale. Remembering York was double the original budget, half the original estimated reserves and half the forecast production from day one and been offline for the last two years after the abandoned low pressure project infill exploration that didn't deliver. Lets get the E&P arm spun off even if given away and let Centrica recover organically. Looking for a price of 100p then I'm out. Though wish full thinking I feel.
Hardly a big announcement just brining York asset back online after years offline, very marginal field just operating to defer commissioning costs. Spirit Energy played a large part in dragging the CNA down. Spirits management jumped an the Hurricane Energy farm in without robust due diligence and lost the £130M investment in 2018. Now Spirit Energy is virtually unsellable with decom liability out weighing the value of the UK and NL business value. Only the Norway business has some value. Centrica's hopes of full retraction from E&P and a handsome sale payment are pie in the sky.