Centrica (CNA)

Down
Share Price:
93.94p
Market Cap:
5,542m
Change Today:
-1.88p
Sector:
Utilities

Centrica in talks to boost financing - report

By Abigail Townsend

Date: Tuesday 06 Sep 2022

LONDON (ShareCast) - (Sharecast News) - Shares in Centrica sparked on Tuesday on reports the blue chip was seeking additional credit to meet rising collateral demands.
European electricity generators are required to post collateral with trading exchanges, but volatile energy markets have seen the amounts they are required to post soar as wholesale prices surge.

In response, Centrica - the owner of British Gas and UK's largest supplier of gas and electricity to households - is in talks with banks about securing billions of pounds in extra credit to meet these growing demands, according to the Financial Times.

The newspaper said Centrica wanted the additional short-term financing primarily as a "pre-emptive", in case the situation deteriorated further.

As at 0845 BST, shares in the firm were trading 3% higher at 80.88p.

Victoria Scholar, head of investment at Interactive Investor, said: "Shares in Centrica have enjoyed a 55% surge over the last year, underpinned by the backdrop of gas inflation, allowing the company to reinstate its dividend and report a leap in first-half profits, to 1.3bn. However, the volatility in gas prices could be starting to take its toll.

"Perhaps the energy giant is attempting to impose political pressure on [Liz] Truss, who could announce a type of financing support for Centrica and others as part of her plans to tackle energy in her first course of action as prime minister."

Both Finland and Sweden announced emergency financial measures for domestic electricity generators over the weekend.

Centrica has yet to comment on the report.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Centrica Market Data

Currency UK Pounds
Price 93.94p
Change Today -1.88p
52 Week High 96.60p
52 Week Low 64.78p
Volume 16,685,430
Shares Issued 5,899m
Market Cap 5,542m

Performance Indicators

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What The Brokers Say

Strong Buy 10
Buy 3
Neutral 1
Sell 0
Strong Sell 0
Total 14
strong_buy
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