Centrica loses 823,000 customers in second half of 2017
The UK energy supplier and owner of British Gas, Centrica, has announced its loss of 823,000 accounts between the end of June and the end of October.
The company warned that its full year earning will be lower than market forecasts predicted due to competition and unprecedented warmer weather.
This has led to Centrica’s shares dropping 15% - 24.3p at 139.0p – landing them at the top FTSE 100 faller.
The energy company expects its full year adjusted earnings per share (EPS) to be approximately 12.5p, which is significantly lower than the consensus estimate.
A one-off impact of 0.8p per share from a £46mn (US$61.2mn) writedown in North America is included in the EPS guidance.
“A profit warning amid falling customer numbers and price pressure means that shares in Centrica are showing a double-digit fall in early trade, amid worries over the long-term sustainability of the dividend,” reported Russ Mould from AJ Bell.
“If the shares stay down at those levels the owner of British Gas will become the ninth current FTSE 100 member firm to have suffered a drop of 10% or more in a single trading day this year.”
Centrica is still on track for meeting the targets set for 2017, which include net debt between £2.5bn ($3.3bn) and £3bn ($3.99bn) and more than £2bn ($2.66bn) for adjusted operating cash flow.
Global Offshore rebrands Enelift and invests in global hubs
Global Offshore has rebranded Enelift and will invest "a seven-figure sum" in establishing new support hubs in Houston, Dubai, Singapore, Perth and the Caspian during the next six months.
The investment will cover oil, gas and renewables, mainly concentrating on manufacturing capability with associated R&D, as well as in stock held in the hubs.
The company’s flagship Hinge Lok technology provides aluminium, non-welded light weight transportation cradle for casing and tubing. Enelift now plans to enhance its offering by augmenting its existing solutions with robotics and remote operational and training technology, which will reduce manpower for handling offshore equipment that is transported and stored using the Hinge Lok system.
Enelift is partnering with "a Japanese robotics company" and the technology will be trialed with "a Norwegian operator on a Norwegian drilling rig", according to a statement.
Operating from its bases in Aberdeen, UK and Esbjerg, Enelift was founded by 35-year industry veteran and Managing Director Paul Brebner 10 years ago to offer the offshore energy industries safe, reliable and efficient storage and transportation of equipment.
The expansion plans are bolstered by the appointment of Jim Clark of the Craigendarroch Group to Chairman, and Adam Maitland to Non-Executive Director. Maitland is the Managing Director of Hutcheon Mearns IF, and brings his wealth of expertise in the field of corporate finance.
Brebner said Enelift may be a new name in the market, but the experience it brings is "industry renowned".
"Our solutions are underpinned by safety that enables inefficiencies and their associated costs to be eradicated – meaning operational personnel can focus doing what they do best, safely. We remain committed to providing the safest storage and transportation solutions for equipment in the sector as we grow our global operations," he said.
Clark said the market is changing and its solutions fully support customers’ economic and safety aspirations.
"We are very well placed to take full advantage of increasing opportunities in the Middle East, Africa, Far East and Americas. Safety is our absolute commitment to our customers and our support hubs will facilitate this. Aligning our identity to our entire offering ensures that we will drive our expansion through new products and global support sites across the rest of this year."