Analyst Views: What did you make of Centrica’s full-year results?
PETER ATHERTON | LIBERUM CAPITAL
The results weren’t a surprise as Centrica had guided the market before Christmas, but they were disappointing nonetheless. The US energy business is struggling with tighter margins than expected. But the political risk in the UK is the biggest thing that has driven their share price over the past five months.
MARTIN BROUGH | DEUTSCHE BANK
We remain concerned that all three main divisions are facing headwinds. The UK competition assessment in March seems increasingly likely to call for a full Competition Commission review. All North Sea gas producers are facing rising cash costs, and retailers in North America are seeing a margin squeeze.
ANGELOS ANASTASIOU | WHITMAN HOWARD
The full-year figures are largely in line with guidance, although there is an indication that 2014 earnings per share will be down on 2013. But we believe whatever the statement says and whatever figures the group produces, in the current environment, the media (and political) reaction will be negative.