Energy Choice
                            

Matters

Centrica Records One-Off, Non-Cash Charge Related To North American Business Retail Supply Unit

Reports "Significant Market Pressures" For North American C&I Retail Biz

November 27, 2017

Email This Story
Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

In a trading update, Centrica reported that its Centrica Business division has, "experienced significant market pressures in our North America Business retail power book."

Centrica is also reflecting a one-off non-cash post-tax charge of £46m for its North America Business unit, relating to a reassessment of the historic recognition of unbilled power revenues.

At the corporate level, Centrica 2017 full year adjusted earnings per share are expected to be around 12.5p, including a 0.8p impact from the North America Business one-off non-cash charge. "This is lower than market consensus, largely reflecting lower than expected adjusted operating profit in North America Business and UK Business," Centrica said

"North America Business is expected to report full year adjusted operating profit of around £80m, with highly competitive market conditions and low price volatility putting significant downwards pressure on realised power margins, and low volatility also reducing opportunities for gas optimisation. In addition energy prices are currently backwardated, meaning the booked profit of fixed price multi-year power contracts will be weighted towards latter years, compressing short term realised margins. As noted above, we expect to recognise a one-off non-cash post-tax charge of £46m (£76m pre-tax) in North America Business relating to a reassessment of the historic recognition of unbilled power revenues," Centrica said

Centrica said that its North America Home accounts have fallen slightly

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Business Development Manager -- Retail Supplier -- Houston / Dallas
• NEW! -- Director, Retail Energy Supply and Pricing -- Retail Supplier -- Houston
• NEW! -- Operations Analyst -- Retail Supplier
• NEW! -- Sales & Marketing Manager -- Retail Supplier
• NEW! -- Retail Energy Account Manager -- DFW
• NEW! -- Director of Affiliate Business Development -- DFW
• NEW! -- Commercial Lead Generation Specialist -- Retail Provider
• NEW! -- General Counsel/ Sr Attorney, Retail Electricity and Gas -- Retail Supplier -- Houston
• NEW! -- Operations Manager/Director -- Retail Supplier -- Houston
• NEW! -- Analyst/Senior Analyst, Energy Management and Marketing -- Retail Supplier -- Houston
• NEW! -- Pricing and Structure Analyst -- Retail Supplier
• NEW! -- Retail Sales Specialist, Telemarketing /D2D/Mass Markets -- Retail Supplier -- Houston
• NEW! -- Market Operations Manager -- Retail Supplier
• NEW! -- Financial Analyst -- Retail Supplier -- Houston
• NEW! -- Pricing Analyst -- Houston