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

10 May 18

Sector leading returns and earnings growth

Fulcrum is a leading provider of utility connection services across the UK. It has a strong recent track record, with adj. operating profit growing organically from £1.1m to £6.5m over the last two years. The Group has two segments, Infrastructure Services (high margin utility connections business) and Asset Ownership (recurring revenue at a very high margin as gas and electric flows through installed networks), and it recently acquired an electricity connections business named Dunamis. Fulcrum’s operating margin is sector leading at 17.2% in FY’17 vs. the construction peer group at 5%, and it operates a cash generative model. We expect continued growth as management implements its strategy to win market share and forecast PBT to grow to £12.4m by FY’20 from £6.5m in FY’17. We set our target price at 80p and initiate with a Buy recommendation.

Companies: Fulcrum Utility Services

14 May 18

Q1 chill boosts Centrica's retail activities, outlook confirmed

Centrica released a short Q1 trading update. Centrica’s management said that the overall performance has been good in the year to date, driven by higher demand for gas following the colder weather and confirmed its set of FY targets (including the 12p dividend), with revenue growth expected to be weighted towards the second half of the year.

Companies: Centrica

17 May 18

US-driven FY17

National Grid reported a good set of FY17-18 results, driven by the US activities, which posted a +20% increase in underlying operating profit fuelled by the 7% rate base growth and favourable rates renewals during the period. The board proposed a FY dividend of 45.93p, up c.3.7%, in line with RPI. The company provided a reassuring outlook and expects growth at the top end of the guided 5-7% range for the medium term, driven notably by the US market.

Companies: National Grid

12 Sep 17

Tailings

We take another look at lithium, where there is a growing realisation that the forecast massive increase in demand is already upon us. This realisation has been matched by an awareness that there is no shortage of lithium in geological terms. However, there is still a considerable degree of ignorance about which types of lithium mineralisation are commercially valuable using current processes and technologies; this will require the development and proving of new processes. In this note, we look at what attributes are required for a lithium-bearing deposit to be attractive for development into a successful mine in the present technical and economic environment.

Companies: APF ACP ATYM BKY CAML FDI GEMD HZM PAF PDL SAV SHG WTI WLFE ASO

05 Mar 18

Strong cash generation

Jersey Electricity (JEL) delivered for both shareholders and customers in FY17. After an extended period of heavy investment in infrastructure, we believe JEL is well placed to continue to provide secure, sustainable and affordable electricity for its customers, generate attractive returns for shareholders and adapt to any regulatory changes. JEL has established an impressive track record of DPS growth (five-year CAGR c 5%) and shareholders should look forward to continuing growth in the DPS (we forecast c 5% pa) underpinned by a strengthening balance sheet.

Companies: Jersey Electricity

15 May 18

Favourable weather and robust gas midstream activities support 6% EBITDA growth in Q1 18

Engie reported a robust set of Q1 18 results, marked by the high winds and hydro output in France, strong activities in the Americas and the robust performance of the gas midstream activities. The group confirmed its 2018 objectives.

Companies: Engie

15 Feb 16

Armadale Capital - Update at 121 Mining Investment

12 Jul 16

finnCap - Initiation of coverage, Fulcrum

Premium

10 Sep 15

Armadale Capital - Interim Results

07 Jul 15

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

12 Jan 17

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

10 Oct 16

Armadale Capital - Project Update

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

03 Aug 15

Developed process route for gold recovery

09 Jul 15

Armadale Capital - Landmark agreement

08 Jun 15

Armadale Capital - Agreement to fund and develop the Mpokoto Gold Project

27 May 15

Executive Interview - KTG Energie (German version)

25 Nov 15

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

24 Sep 15

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

Latest Content

Suez

Q1 18: somewhat reassuring

Suez’s Q1 18 results: €4,058m (+1.7% organic, +9.1% reported, +13.8% at CER), EBITDA €635m (+2.6%, +3.4% +8.8% respectively), EBIT €289m (+5.5%, +2.8%, +10.2%). Net debt at the end of Q1 was €8.8bn (€8.5bn at year-end 2017).

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17 May 18
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National Grid

US-driven FY17

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17 May 18
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RWE

Q1 18: weak trading activities, outlook unchanged

RWE reported a rather weak set of Q1 results, marked by lower trading results and lower margins in the group’s generation segments. However, RWE was able to generate a positive FCF thanks to higher CO2-linked variation margins and lower WCR spend. The 2018 objectives have been confirmed.

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15 May 18
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Engie

Favourable weather and robust gas midstream activities support 6% EBITDA growth in Q1 18

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15 May 18
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Centrica

Q1 chill boosts Centrica's retail activities, outlook confirmed

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14 May 18
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EDP - Energias de Portugal

Regulation and FX headwinds weigh on EDP’s Q1 results

EDP released a weak set of results, marked by an €18m negative one-off, Portugal’s tightening Networks regulation and adverse forex impact in Brazil, more than offsetting the positive performance of Renewables whose growth was fuelled by improved wind conditions and higher installed capacity.

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11 May 18
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HERA

Robust gas trading offsets lower electricity earnings in Q1 18

Hera reported a rather good set of Q1 results. Revenue and attributable net profit rose 10% on the back of strong growth in the gas business (EBITDA +9.3%) on higher trading volumes as well as robust Waste and Water activities (+4%), more than offsetting lower results in the electricity business (-6.4%) due to several planned maintenance and lower trading activities. The group’s net debt decreased from €2,523m to €2,502m, 2.5x the group’s rolling 12-month EBITDA.

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11 May 18
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Electricite de France

Better nuclear availability, higher tariffs and favourable weather push the Q1 results

EDF released a solid set of Q1 results, marked by the strong performance of the French regulated activities, better nuclear fleet availability, improved trading and higher renewable installed capacity. The group confirmed its 2018 outlook.

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10 May 18
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FCRM GOAL GHT HILS PLP RAT

Morning Song

Fulcrum Utility Services Limited (FCRM LN) Sector leading returns and earnings growth | Goals Soccer Centres (GOAL LN) Satisfactory AGM but weather impact higher than earlier guidance | Gresham Technologies (GHT LN) Positive AGM statement confirms Clareti momentum | Hill & Smith Holdings (HILS LN) Positive strategic US acquisition | Polypipe Group (PLP LN) Strategy update highlights growth opportunities | Rathbone Brothers (RAT LN) Q1 FuM -3.3%, flows remain modest in investment management