Centrica’s Big Exit: 20 Years in the U.S. Market Are Going the Way of the Dodo
In a move that’s sending ripples through the energy world, British Gas owner Centrica has sold its U.S. arm, Direct Energy, for a cool £2.9 billion. That means the company is officially calling it quits in America after two decades of keeping the lights on for millions of customers.
CEO Chris O’Shea Keeps It Straight‑Forward
O’Shea gave reporters a simple reason for the sale: focus. “If you pull all your energy into one place, you shine brighter. That’s the secret sauce for better results.” He reminded everyone that the company’s next chapter is all about tightening up its operations in the UK and Ireland.
The Money, the Pay‑Down, and the Pension Boost
The cash from the sale will be put to good use: a “material contribution” to UK pension schemes and a hefty reduction in debt. Think of it as a ₤2.9 billion bailout that keeps the company’s tail wagging in the right direction.
Financial Sights from the Investment World
- Stuart Lamont, Brewin Dolphin: “Selling the U.S. arm is a smart reset. It simplifies Centrica’s structure and lightens the debt load.”
- After the roller‑coaster of 2019: Revenues and profits have taken a dip amid tough economic and commodity conditions.
Union Voices and Service Storms
Justin Bowden of the GMB union noted that the company’s decline in customer numbers—three million lost over five years—has put strain on both front‑line staff and managers. “They’re being asked to jump back in, and it’s no longer sustainable,” Bowden said.
Stocks That Took the Wind in Their Sails
Shares spiked, rising 24% early on Friday, and closed at 50p. It’s a clear sign that investors were ready for the clean break and sharper focus.
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