Centrica plc·Utilities

BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) led UK energy stocks lower on Wednesday after oil prices slumped following news of a two-week ceasefire in the US-Iran conflict and signs that traffic through the Strait of Hormuz could resume.

Shares in BP PLC (LSE:BP.), Shell PLC (LSE:SHEL, NYSE:SHEL) and Centrica PLC (LSE:CNA) were leading the small band of FTSE 100 risers on Thursday, as oil and gas prices rose after Donald Trump said the US "will hit Iran extremely hard" over the next few weeks to bring the war to an end.

JPMorgan has turned more constructive on European utilities, highlighting SSE PLC (LSE:SSE) and Centrica PLC (LSE:CNA) among its preferred names as higher commodity prices and geopolitical tensions boost the sector's defensive appeal. The bank said the conflict in Iran has shifted the outlook for gas and power markets, with prices now expected to remain structurally higher in both the short and medium term.

Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) shares jumped over 14% after it revealed a new strategic partnership with British Gas owner Centrica PLC (LSE:CNA) and reported full-year results broadly in line with expectations. The hydrogen and fuel cell technology developer said the partnership will combine its solid oxide fuel cell technology – currently able to generate electricity from natural gas and designed to also use other fuels such as biogas and hydrogen in the future – with the British Gas owner's energy supply and trading platform, targeting businesses struggling to secure grid connections fast enough to meet growing power demands.

British Gas owner Centrica and Ceres Power announced a partnership on Thursday to deploy solid oxide fuel cell power solutions to meet the multi-gigawatt demand from commercial and industrial customers across the UK and Europe.

Centrica PLC (LSE:CNA), the British Gas owner, has been upgraded to buy by Citi, which raised its price target on the stock to 218 pence from 200 pence, arguing that rising geopolitical tensions and volatile gas prices make the company's strategic assets increasingly valuable. The US bank said the ongoing conflict in the Middle East and recent gas price rises were likely to sharpen the UK government's focus on energy security, benefiting Centrica in particular, given its ownership of Rough, the UK's largest gas storage facility, and its involvement in the proposed Sizewell C nuclear power station in Suffolk.
Centrica plc operates as an integrated energy company in the United Kingdom, Ireland, Norway, North America, and internationally. The company operates through British Gas Services & Solutions, British Gas Energy, Centrica Business Solutions, Bord Gáis Energy, Energy Marketing & Trading, and Upstream segments. It supplies gas and electricity to residential customers, as well as offers energy-related services; and generates power from nuclear assets. The company also provides installation, repair, and maintenance services for domestic central heating, plumbing and drains, home electrical, and gas and kitchen appliances; and heating, ventilation, and air conditioning equipment, as well as offers breakdown services. In addition, it is involved in the procurement, trading, and optimization of energy; procurement and sale of LNG; and supplies energy efficiency solutions and technologies to residential customers. Further, the company produces and processes gas and oil; develops new fields to maintain reserves; constructs, owns, and exploits infrastructure; and engages in the social enterprise investment fund activities. Additionally, it provides vehicle leasing, commercial, and insurance services, as well as energy management products and services; and operates a gas storage and franchise network. The company was formerly known as Yieldtop plc and changed its name to Centrica plc in December 1996. Centrica plc was founded in 1812 and is based in Windsor, the United Kingdom.
Utilities
Independent Power Producers
21,038
2009-02-13
0.39
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