Utilities

Utilities equity research

Explore the most viewed and latest equity research and media content for companies within the Utilities sector. Companies within this sector provide services including electricity generation, water, gas and multiservice utilities.

Utilities equity research

16 May 19

Good FY18/19 results spoiled by nationalisation risk

National Grid released a good set of FY18/19 results. Activities in the US continue to lead the RAV growth and the group continues to invest in the UK to increase the quality of its network. But this good publication was spoiled by Labour’s suggestion to nationalise the energy networks. Although this seems unlikely, it will be a driver of the stock price in the short term.

Companies: National Grid

28 Feb 19

Cenkos: OPG Power Ventures Plc - Trading in line with expectations

A positive 9M/19A trading update from OPG confirms that EBITDA, PBT and NPAT are all expected to be in line with market expectations for FY19E. Higher tariffs, lower coal prices and strong operating performances at Chennai I, II, and III are helping to offset lost production from a temporary shutdown at Chennai IV. The falling away of the last of the parent guarantees for ringfenced debt at the Gujarat SPV allows a line to be drawn under this legacy issue. The highly cash generative nature of the core Chennai operations is allowing steady deleveraging, with OPG expecting to have repaid all term debt at its Chennai plants within 4.5 years. Trading on an FY19E EV/Adj EBITDA of 4.6x and a P/B of c0.6x, we see excellent value in this highly cash generative business. Buy.

Companies: OPG Power Ventures

14 May 19

Q1 was impacted by mild winter, but full-year guidance is confirmed

EBITDA was down 4.8%, broadly in line with expectations, due to lower volumes after the warmer winter and a timing effect in the Client Solution segment. The negative items are expected to be offset during the year; thus guidance for the full year is confirmed.

Companies: Engie

21 Mar 17

Solid progress across a wide range of fronts

Good Energy, the independent supplier and generator of renewable energy, has announced FY16 results showing revenue up 41% to £90.4m with PBT of £1.4m, slightly ahead of our £1.3m expectation. Our headline estimates remain unchanged although EPS for FY17 is marginally lower reflecting an increase in shares in issue. We anticipate further progress as the group leverages the benefits from improved systems and economies of scale as well as from various ongoing efficiency initiatives.

Companies: Good Energy Group

14 Jan 19

Opportunity knocks

We are introducing our Best Ideas for 2019 and also review the performance of last year’s picks. We suggest ten solidly financed stocks with good business dynamics that ought to be considered for core portfolio holdings and six UK domestically focused stocks that our analysts believe should perform strongly in the event that uncertainties unwind. We also introduce a new style of research from N+1 Singer which presents a Company’s dynamics and metrics in a clear and concise manner and concentrates on the pivotal issues affecting that Company and an investment decision.

Companies: BCA CLIN CLG CBP DNLM EAH FDL FCRM FUTR GTLY INS GLE NICL SDL SPR TRI

21 Feb 19

2018-20 under pressure, causing uncertainty about the dividend

Centrica delivered a mixed set of results FY18, adjusted operating cash flow and net debt were within the target ranges, but EPS is 2.6% lower than expected. Due to the UK default tariff cap the low volumes in E&P and nuclear, group downgraded AOCF guidance for 2019 is 1.8-2.0, or 13.6% lower than the required average pace of growth to reach the 2018-20 target.

Companies: Centrica

28 Mar 19

Cenkos: Fulcrum Utility Services Ltd - An opportunity to get them cheap

Today's trading update highlights positive progress across the group with exception of certain larger, electrical projects, which remain subject to ongoing external challenges. Despite the headwinds, given its newfound breadth across various revenue streams, Fulcrum is still set to deliver revenue of c£57.0m (+28%) and adj EBITDA of £11.0m (+31%) this year. We feel the recent share price fall has overly discounted for risk relative to today's revisions to forecast adj EPS of -13% (FY19E) and -24% (FY20E).

Companies: Fulcrum Utility Services

15 May 19

Good start to the year backed by excellent Trading performance

RWE reported a good set of results. The good performance in Trading offset the decline in the European Power segment due to lower volumes and the suspension of the UK capacity market, whereas the Lignite & Nuclear segment remained flat as lower volumes were compensated by higher electricity prices. In all, full-year guidance is confirmed with a dividend target of €0.8.

Companies: RWE

15 May 19

Good Q1 backed by higher regulated revenues

Hera realised a good first quarter thanks to M&A operations in the Gas segment, cost cutting in the Water Cycle segment and higher tariffs on regulated services. Net debt was broadly stable (including the IFRS 16 effect), implying a comfortable 12m rolling net debt/EBITDA ratio of 2.5x.

Companies: HERA

15 May 19

Good Q1 backed by higher regulated revenues

Snam published a good set of Q1 results. The Transportation segment benefits from higher regulated WACC, the decrease in Storage’s EBIT, due to volumes, is negligible at the group level. Operating cash flow largely covers investments, allowing the group to deliver a free cash flow of €634m and to reduce its debt.

Companies: Snam

10 Oct 16

Armadale Capital - Project Update

10 Dec 18

Executive interview – 2G Energy

10 Sep 15

Armadale Capital - Interim Results

12 Jul 16

finnCap - Initiation of coverage, Fulcrum

Premium

07 Jul 15

Armadale Capital - Andrew Tunks: Key to a successful gold operation

25 Nov 15

Armadale Capital - Update on the development and expansion of the Mpokoto Gold Project

21 Feb 19

OPG Power Ventures Investors Overview

03 Aug 15

Developed process route for gold recovery

09 Nov 18

Executive interview - ERM Power

09 Jul 15

Armadale Capital - Landmark agreement

12 Jan 17

Capital Network's Stacey: 2017 is the year Mytrah Energy will unlock value

23 Nov 16

Armadale Capital - Full assay results confirm exceptional high-grade graphite deposit

26 Oct 16

Armadale Capital - 85% strike rate from drilling Tanzania

15 Feb 16

Armadale Capital - Update at 121 Mining Investment

24 Sep 15

Armadale Capital - Remains on track for commercial production in H1 2016

Latest Content

EDP - Energias de Portugal

Brazilian networks ensure growth after adverse weather conditions for renewables

EDP released a pretty good set of Q1 results. Network EBITDA increased 11%, supported by the Brazilian activities, while the rise in electricity prices partially offset unfavourable weather conditions, recurring EBITDA from renewables was down 6%. The group was able to reduce its opex by 2%. Positive view confirmed.

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17 May 19
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National Grid

Good FY18/19 results spoiled by nationalisation risk

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16 May 19
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ACP ASO SAV SDI

Morning Note – 15 May 2019

Armadale Capital (ACP): Corp Mahenge Liandu project update | Avesoro Resources (ASO): Corp Q1 financial results | Savannah Resources (SAV): Corp Significant new high grade lithium drilling results | Scientific Digital Imaging (SDI): Corp FY trading update

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15 May 19
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RWE

Good start to the year backed by excellent Trading performance

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15 May 19
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HERA

Good Q1 backed by higher regulated revenues

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15 May 19
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Snam

Good Q1 backed by higher regulated revenues

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15 May 19
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Engie

Q1 was impacted by mild winter, but full-year guidance is confirmed

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14 May 19
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E.ON

Q1 in line; FY19 guidance confirmed

EBIT and adjusted net income was down, as expected, after an exceptionally high base in Q1 18. The group also suffered from fierce competition in the UK and a delayed pass-on higher grid feed to customers in Germany. Full-year guidance is confirmed, and the Innogy transaction is on track.

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13 May 19
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Enel

Good Q1 figures; FY guidance confirmed

Enel published a good set of Q1 19 results, benefiting from higher electricity price. The group confirmed FY guidance and will increase its capex for renewables in North America.

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09 May 19
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VERBUND

Good Q1 figures; lower range of guidance slightly revised upward

The group benefits from a hydro coefficient higher than the long-term average, but suffers from tough comparatives. The group result was up by almost 50% after a good operating performance and lower financial costs. The lower range of the year’s guidance was slightly revised upward.

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