Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

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For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

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  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

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Centrica PLC (CNA)

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Thursday 12 November, 2009

Centrica PLC

Interim Management Statement

Interim Management Statement

Centrica PLC

12 November 2009

Centrica Interim Management Statement

Overall Centrica’s business is performing in line with market expectations, with lower gas production volumes and profitability being offset by a lower effective Group tax rate and the strong performance from the UK downstream business.

British Gas continues to perform well. Between the end of June and the end of October the number of Residential Energy accounts on supply rose by around 200,000, and now stands at 15.7 million, and the number of Services accounts were up by around 100,000 to 8.3 million. In the year to date, the number of customer product holdings in the downstream business has now grown by over 400,000. We have launched our first integrated energy and services offering, “EnergyExtra”, and continue to step up cross selling activity. As a result, the number of households which hold both an Energy and a Services product at the end of September was up by 25,000 from the middle of the year. We continue to help our customers reduce their bills through energy efficiency, and average gas consumption per residential customer in the first nine months was down 7% against the same period last year. Trading results from both Business Energy supply and from Services are ahead of expectations, with strong year on year growth expected from these businesses, as well as from Residential Energy.

With the integration of British Gas progressing well, we are on track to exceed our target of £100 million of cost savings, allowing us to re-invest in the business as we build on the strength of the British Gas brand, and establish the platform to develop growth areas further. We are in-sourcing meter installation operations as we prepare for smart meter roll out, and we are developing capabilities across energy services, energy efficiency and micro-generation that will allow us to offer our customers the broadest range of products and services. Some one-off costs will be incurred as we integrate British Gas, with an exceptional charge of around £50m expected in 2009, and additional exceptional costs expected in 2010 as we drive for further ongoing savings.

Upstream in Centrica Energy, we acquired a controlling interest in Venture Production plc at the end of August and we now own 100% of the issued share capital. Integration of Venture and our existing UK upstream business is progressing well, with a combined organisational structure being implemented. We have been impressed with the quality of the team that has joined us with Venture, and we are confident of developing a high performance, sustainable business in the enlarged structure.

During the third quarter, Centrica’s gas production, including one month’s production from the Venture assets, was 209 million therms, down 50% on the same period in 2008. With wholesale gas markets well supplied we have been able to conserve our own reserves, using our production flexibility, by leaving South Morecambe shut in following its summer maintenance shutdown. The field restarted production in early October. Full year gas production, including four months’ production from the Venture assets, is expected to be down around 25% against 2008, although oil and condensate production volumes will be around 35% higher. Combined with lower average selling prices, this lower production will lead to profits* from the upstream business this year being less than half of those recorded in 2008, despite the four month contribution from Venture.

In Power Generation, the operating performance of Centrica’s gas fired power stations (CCGTs) and wind farms has been good, with reliability for the CCGT fleet running at 96% so far this year. Low gas prices have led to higher spark spreads, and we have responded by increasing running hours for the CCGT fleet. As a result, generation volumes in the third quarter were 6.8TWh, 15% ahead of the same period in 2008. Subject to the outturn for spark spreads in the last two months of the year, the power generation segment is expected to record profits* ahead of current consensus.

At the end of October, we announced the sale of a 50% equity stake in three of our existing wind farms, Glens of Foudland, Lynn and Inner Dowsing. Financial close is anticipated before the year end. We also announced that we will be proceeding with the construction of the 270MW, £725 million Lincs offshore wind farm. This model, recycling capital from completed wind farms into new projects, gives Centrica the ability to capture significant development value, without tying up financial resources in capital intensive investments for the long term. And with Lincs benefiting from two renewable obligation certificates per MWh, the new project offers attractive returns.

Commissioning of the 885MW, £400 million Langage CCGT plant located near Plymouth is underway. Both gas turbines have been started and commercial operation is anticipated around the end of the year. With a thermal efficiency of 52%, Langage will be one of the most efficient CCGTs on the UK system and will raise the installed capacity of Centrica’s CCGT fleet to 5GW.

A decision from the European Commission on the sale of our 51% stake in Belgian business SPE to EDF is due imminently. Approval will allow the sale to complete, simultaneous with the acquisition by Centrica of a 20% stake in British Energy.

Centrica Storage continues to perform well operationally, with the Rough storage facility at the highest ever recorded storage stock level going into the winter. With the price for 2009/10 standard bundled units fixed for the remainder of the year, expectations for Centrica Storage’s full year results are unchanged. Concept engineering is complete for all three of our potential storage projects, Caythorpe, Bains and Baird, with more detailed front end engineering design work also underway for both Caythorpe and Baird. We expect to take final investment decisions on all three projects in 2010.

In North America, low wholesale energy prices continue to impact the financial performance of Direct Energy’s upstream gas production business and the Texas CCGT’s. However, our mass markets and C&I businesses continue to perform well, despite the weak economic conditions, and overall Direct Energy is trading in line with full year expectations.

The Group net interest charge is forecast to be around £175 million, reflecting the increased debt taken on to fund the Venture and British Energy transactions. At the end of the third quarter, net debt stood at £2.5 billion, with net margin cash held by counterparties of £700 million. The increase in net debt from 30 June reflects the acquisition of Venture. Net debt includes the debt within Venture at the time of acquisition, with £340 million of this now having been refinanced, utilising some of Centrica’s cash balances.

The reduction in profits* from the highly taxed UK upstream business will reduce the Group’s effective tax rate which is now expected to be around 36% for the full year.

The principal variables impacting the group’s trading results for the remainder of the year are gas consumption levels by customers, driven mainly by weather, and commodity prices. Assuming normal weather patterns, and based on current forward commodity prices, the group’s adjusted earnings* are expected to be in line with current consensus.

The next scheduled reporting event in the financial calendar for Centrica is the 2009 full year results on 25 February 2010.

* - before certain re-measurements, exceptional items and additional depreciation as a result of fair value uplifts under acquisition accounting

Enquiries:

Centrica Investor Relations 01753 494900

Centrica Media Relations 0845 072 8001