Centrica to Refocus on Smaller UK Gas-Fired Plants

Centrica said on Thursday it intends to refocus investments in UK gas-fired power generation on flexible smaller plant. Doing so, the company wants to release capital from larger power stations with a book value of around £500 million. 

The company also unveiled new investments. 

“Investment in security of supply remains a key priority.  We continue to invest in new sources of gas for the UK and we have commitments totalling around £60 billion to help secure energy for our customers.  We have further strengthened our relationship with Qatar Petroleum International through today’s transaction, and look forward to continuing to work with them as we consider investment opportunities in gas and power on both sides of the Atlantic,” Sam Laidlaw, Chief Executive of Centrica, said in a note released on Thursday. 

Centrica sold 40% of its North American assets into joint venture partnership with Qatar Petroleum International for C$200 million.

According to the press release, Centrica maintains its interest for new fields.

‘We continue to invest in new sources of gas for the UK, including the large-scale Cygnus and Valemon projects in the North Sea which remain on track; we have an attractive opportunity to explore the potential of natural gas from shale in the UK; and we have commitments totalling around £60 billion to help secure energy for our customers, including the North American export contract signed with Cheniere in 2013.  In total, we expect to deliver around £1.3 billion of organic investment across the Group this year.’

The company also said that it expects 2014 full year adjusted earnings per share to be in the range 22-23 pence per share, despite the increase in network charges and higher costs associated with renewable energy.