Shares of Centrica PLC (LON: CNA) have been trading in a 5p range since mid-September despite several positive announcements from the British multinational energy and services company over the last few days.
Centrica owns British Gas and multiple companies globally including in the US where it owns Direct Energy, which is being sold to NRG Energy Inc. The energy firm announced last week that NRG Energy Inc had received further regulatory approvals as the deal gets closer to being completed.
The stock’s gains were limited by threats of industrial action by British Gas employees on fears that the company would fire thousands of its employees by Christmas. Centrica has been embroiled in a very public battle with its unionised employees over plans to fire British Gas’ entire workforce.
The workers’ union blames the company’s management for British Gas’ current problems. Centrica has since backed down from the threat but has kept the plan as an option much to the ire of its workers.
British Gas recently launched a much cheaper service dubbed “British Gas Evolve” that offers both gas and electricity supply from renewable sources at a low cost. The company is a late entrant to the Green Energy space where challenger suppliers such as Outfox the Market are taking market share from the big six suppliers.
British Gas also recently signed a clean energy supply deal with UK carmaker Lotus Cars, which will see it supply electricity from 100% renewable sources to ensure that the company uses carbon-neutral electricity.
Centrica shares are likely to rally once the tiff with its British Gas employees is resolved.
Centrica share price
Centrica shares were trading flat at the time of writing after gapping lower at the open.