Centrica Struggles with Customer Loss, Price Caps; Mitchells & B Net Jumps

Sarla Buch
22 Nov, 2018
New York City

Befesa profit surged. Centrica declined after the utility lost home energy customers and cap on energy prices. Severn Trent reported nearly flat earnings. Mitchells & Butlers said net soared 65%. United Utilities reported upbeat first-half results.

[R]4:00 PM Frankfurt – Befesa profit surged. Centrica declined after the utility lost home energy customers and cap on energy prices. Severn Trent reported nearly flat earnings. Mitchells & Butlers said net soared 65%. United Utilities reported upbeat first-half results.[/R]

In London trading, FTSE 100 index dropped 68.37 or 1% to 6,982.07 and in Frankfurt the DAX index slumped 66.77 or 0.6% to 11,177.69.

In Paris, CAC 40 index slipped 19.76 or 0.4% to 4,955.37.

Befesa SA dropped 2.3% to €36.55 after Germany-based industrial waste solution provider said revenues in the nine-month period ending in September fell 1.6% from a year ago to €539.1 million.

Net profit in the period surged 81.4% to €62.9 million from €34.7 million in a year ago period and diluted earnings per share swung to €1.85 from diluted loss per share of €0.01.

The industrial waste manager said operating profit in the period jumped 15% to €128.9 million.

Befesa forecasted fiscal 2018 operating profit between €174 million and €176 million and net profit to jump to €62.9 million from €49.3 million in the same period a year ago after earnings in the steel dust recycling services segment are expected to increase.

Centrica Plc declined 5.4% to 137.95 pence after the U.K.-based energy services provider forecasted fiscal 2018 operating profit above the fiscal 2017 level and operating cash flow between £2.1 billion and £2.3 billion and net debt in the range of £2.5 billion and £3 billion.

Centrica said it lost 372,000 home energy customers in the four months to the end of October and gross revenue for the first ten-months was nearly flat and earnings per share is forecasted to drop to 11.5 pence from 12.6 pence from a year ago period.

Mitchells & Butlers Plc gained 0.9% to 270 pence after the U.K.-based pubs, bars and restaurants operator said revenues in the first-half in September fell 1.4% from a year ago to £2.15 billion.

Net income in the year soared 65.1% to £104 million from £63 million in the same period a year ago and diluted earnings per share advanced to 24.4 pence from 15 pence.

The pubs, bars and restaurants said pretax profit jumped 68.8% to £130 million from £77 million in the same period a year ago.

Severn Trent Plc slid 0.2% to 1,910 pence after the U.K.-based water and waste water services provider said revenues in the first-half ending in September jumped 3.6% from a year ago to £881.5 million.

Net income in the year rose 0.6% to £165.1 million from £164.1 million in the same period a year ago and diluted earnings per share edged up to 69.7 pence from 69.4 pence.

United Utilities Group Plc slipped 0.6% to 773.60 pence after the U.K.-based water and waste water services provider said revenues in the first-half ending in September advanced 4.6% from a year ago to £916.4 million.

Net income in the year jumped 7.6% to £212.5 million from £197.4 million in the same period a year ago and diluted earnings per share increased to 31.1 pence from 28.9 pence.