Centrica Plc. is an avoid at the current price level as the stock still looks like in a correction mode. The stock finished trading at 133p a share on the London stock exchange, up by 0.38% compared to the previous close. In terms of technical terms or charting, the stock still looks a little weak and we expect the downside correction to continue for some time. On a daily chart, the stock has formed a triple top pattern which indicates that the upside is restricted and the stock has a more room for downside. The momentum oscillator crossover also indicates the bearishness of the stock. The immediate support and resistance for the stock lies at 124p and 147p respectively. A move above 147p can indicates some upmove in the stock. However, a break below 124p can take down the stock to even lower levels. Therefore traders or investors would be advised to keep an eye at the respective levels and accordingly initiate their positions.
Let’s throw some light on the latest financial results of the company announced on 22nd Feb 2018. As per the results, the company’s adjusted operating profit was down by 17% because of reduced profit in Centrica business. Adjusted earnings were also down by 22% on account of high net finance cost. However, the good news for the investors is that the net debt had come down by £877m to £2.6bn, which is at the lower end of the company’s target. (Read more)
Centrica Plc. is an avoid at the current level! The stock has clearly been in a correction mode and it looks like that the correction is going to continue for the time being. Hence, traders and investors would be advised to stay away from the stock till it starts consolidating. The stock finished trading on the London stock exchange at 197.1p a share, up by 0.25% compared to the previous close. The stock has been trading on a narrow channel of 195p-215p for quite some time. However, the momentum oscillators are clearly signaling ‘Sell’ on the daily charts. Thus, we see a sharp breakdown coming in Centrica plc. anytime soon. Thus, fresh positions should be strictly avoided in the company. Currently, the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 203p, 202p and 205p.Trading below the moving averages is also clearly a bearish indicator for a stock and moving averages would act as a crucial resistance for the stocks.
The company announced its half yearly 2017 financial results on 1st August. The results also seem to dampen the sentiment of the investors as the stock hasn’t shown any up movement since the results. Let’s throw some light on the latest financial results of the company. The company reported a mixed bag of earnings on 1st August. The company reported H1’17 revenue at £14.3bn, up by 7% compared to last year. The half yearly adjusted operating profit fell by 11% to £449m including a higher net interest cost. The adjusted operating cash flow was down by 9% reflecting one-off UK Business working capital inflow in 2016. But the good news for the investors was that the net debt came down by 22% and was in line with company’s expectations. (Read more)
As fronts of freezing cold weather have swept across Europe and the UK, this has caused disruption all over the continent. On the black sea, movements of vessels in the Bulgarian port of Varna were curbed because of blizzards and gales, while three Ukrainian harbours were blocked by ice. Vessels entering and exiting Costanta, one of Romania's – and Europe's – major grain transporting hubs, have also been delayed, with potential effects on the European market for wheat and other cereals exported through that port. Further inland, navigation on the Danube between Germany and Hungary has also been disrupted. In England, flights were temporarily suspended between Heathrow and Gatwick. (Read more)
Centrica is a ‘Hold’ at the current levels. Although the Stock has gone through a small correction in the last 3 to 4 trading sessions, but we still see Centrica as ‘Hold’. Centrica announced its half yearly 2016 results last week but management looked happy with the company’s performance despite challenging macro environment.
The Centrica CEO, Iain Conn commented on the results “The first half of the year has been demanding for Centrica, but the response has been strong and I am encouraged by the progress we have made. We are delivering underlying performance improvement and are building a robust platform for customer-focused growth. I remain confident in our ability to deliver both attractive returns and underlying cash flow growth, as we continue to implement our strategy” (Read more)
In terms of technical analysis, Centrica Plc chart has turned pretty bearish, indicating that bears are in charge, outweighing the bulls. The stock had a resistance at 240 pence twice and couldn’t cross the 240p level. On 5th May, it had given a ‘Gap’ down and even continued falling afterwards. The stock also went below its 20 day, 50 day and 100 day moving average of 225p, 226p and 215p respectively. It finished trading on London Stock exchange on 13th May at 202 p a share. In the near term, the stock would be having immediate support at 196 pence and it may start consolidating around 196 pence. However, the immediate resistance for the stock would be 208 pence. If the stock manages to break the resistance of 208 pence, then we would see Centrica Plc trading in the range of 208p-223p. Therefore, the traders need to watch these levels and hedge their positions respectively. (Read more)
Centrica PLC is a compelling buy with an upside of upto 30% from the current levels. The stock finished trading on London Stock exchange on Wednesday 2nd March at 218 p a share. The stock has been trading in a range of 182p-290p in the last one year. In terms of technical outlook, the stock has been trading above 20 days, 50 days and 100 days moving average of 201p, 205p and 212 p respectively. If the stock manages to break 218 levels, it may start trading in the range of 218p-240p. Therefore, the traders need to watch the prices of Centrica PLC, as the stock might be set to breakout at the current levels. Based on earnings estimates for the company's fiscal year ending in December 2017, the stock has a price-to-earnings ratio of 11.20 which is slightly low compared to FTSE100 12 month forward P/E of 13.37. The analysis of company’s forward price to earnings compared to the index FTSE100 clearly indicates that the stock is undervalued at the current price.
2015 fiscal results highlight: (Read more)
Centrica PLC is a compelling BUY with an upside of up to 35% from the current levels. Currently, the company is trading 1.1% above its 52 W Low and 30% below its 52 W high. The company finished trading in the London stock exchange at £209.10 a share on Monday. However, at the current levels, it seems that the stock will start consolidating and offers a long-term opportunity for the investors. Centrica plc is an integrated energy company and has a market cap of £10.73 Billion. The Company operates through three segments namely International Downstream, International Upstream and Centrica Storage. Out of all the segments, the company generates 85% of its revenue from the international downstream segment. This segment provides residential energy supply, residential services, and business energy supply and services in the United Kingdom, North America and the Republic of Ireland. The International Downstream segment consists of the operations of British Gas, Direct Energy and Board Gas Energy.
However, 2014 has been a challenging year for Centrica PLC because of the extreme weather conditions in the UK and US, volatile commodity prices and the falling oil prices. Despite the roadblocks, Centrica PLC reported solid second quarter results. Though oil prices are still a matter of concern for centrica PLC, the company bounced back with the solid second quarter results, indicating towards decent 2015 results. Also, to strengthen its foothold in the challenging markets, the company is planning to pursue inorganic activities and plans to acquire Norwegian continental shelf as the company sees Norway as its main growth area for new production. (Read more)