Centrica PLC Trading Update (6072L)
January 14 2021 - 1:00AM
UK Regulatory
TIDMCNA
RNS Number : 6072L
Centrica PLC
14 January 2021
14 January 2021
Centrica plc
Resilient financial performance in the second half of 2020
Centrica's operational and financial performance was resilient
in the second half of 2020, as we maintained a tight focus on cash
generation and expenditure against the backdrop of Covid-19. The
significant restructure announced in June remains on track, and
trading and optimisation performance continued to be strong, in
particular in our LNG business. At the end of 2020 we had 6.9m UK
energy supply customers and 3.6m UK services customers, both
broadly unchanged since the half year.
Covid-19 continued to impact financial performance, although as
expected the gross impact was lower in H2 2020 than in H1 2020. UK
business electricity demand was negatively impacted by around 15%
in H2 2020 compared to around 30% in Q2 2020. Residential boiler
installations recovered in the second half compared to the first
half but were still around 15% lower than in H2 2019. Cash
collection trends across the Group were broadly in line with
previous years.
However, we remain cautious as we head into 2021, with the
return of tighter Covid-19 restrictions in the UK and Ireland
expected to put continued pressure on business energy demand and
limit services workload. In addition, the related uncertain
economic backdrop increases the potential for additional working
capital outflow and higher bad debts.
We currently expect to report 2020 full year adjusted earnings
per share from continuing and discontinued operations(1) ahead of
current market consensus(2) . 2020 closing Group net debt is
expected to be approximately GBP2.8bn, a reduction of over 10% in
the year. This is before including net proceeds of GBP2.7bn from
the sale of Direct Energy (which closed on 5 January 2021), the
bulk of which will be used to reduce net debt and make a
contribution to the Group's defined benefit pension schemes.
The Company is due to release its 2020 Preliminary Results on 25
February 2021.
ENDS
Enquiries:
Investor and Analysts Media Relations
T: 01753 494900 T: 01784 843000
E: ir@centrica.com E: media@centrica.com
Notes
1. Following the announcement on 24 July 2020 of the sale of
Direct Energy, North America Home and North America Business will
be reported as discontinued operations for 2020 and for 2019
comparatives.
2. As at 13 January 2021, the average 2020 adjusted earnings per
share of 16 sell side analyst forecasts published since Centrica's
Interim Results announcement on 24 July 2020 is 4.8p.
3. All reported financial figures remain subject to audit.
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END
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