Table of Contents
DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
ANALYSIS
2
European Utilities Key Player Profile: Centrica 2
Datamonitor' s Key
Player Scorecard examines 31 leading utilities drawn from across Europe' s
competitive arenas 4
Key Players dominate power generation capacity market
share in the Wmed competitive arena 5
Key Players dominate power
generation output market share in the Wmed and CEE competitive arenas 6
Despite ongoing industry consolidation, in no competitive arenas do Key
Players dominate power supply volume market share 7
Despite ongoing
industry consolidation, in no competitive arenas do Key Players dominate gas
volume market share 8
The Key Player Scorecard assesses utilities across
four pillars: Performance, Scale, Growth and Exposure 9
The Performance
pillar combines 5 financial metrics to measure business performance 10
The
Scale pillar combines financial and operational metrics to measure the size of
a utility 11
The Growth pillar measures the rate of growth of a utility' s
financial and energy resources 12
The Exposure pillar combines both
operational and financial measurements of risk 13
Centrica scores 34.3/100
on Datamonitor' s European Utility Scorecard and ranks 14 out of the 31 Key
Players covered 14
Centrica scores 34.3/100 on Datamonitor' s European
Utility Scorecard and ranks 14 out of the 31 Key Players covered 15
Centrica' s ranking varies widely across the four pillars 16
Centrica
scores 12.7/25 on the Performance pillar, and ranks 10 out of 31 on this
measurement 17
Centrica scores 3.5/25 on the Scale pillar, and ranks 12
out of 31 on this measurement 18
Centrica scores 8.9/25 on the Growth
pillar, and ranks 12 out of 31 on this measurement 19
Centrica scores
9.2/25 on the Exposure pillar, and ranks 13 out of 31 on this measurement
20
Centrica achieves an overall ranking of 14, with a utility score of
34.3 21
Centrica' s overall ranking is helped by its above average
Performance and Growth Scores 22
Compared to its top ten peers, Centrica
has a median level of Performance 23
Centrica scores roughly average on
Growth, yet underperforms on the Scale pillar 24
Centrica receives a top
score for return on investment, but lags in most other metrics for an overall
Performance ranking 10 25
Centrica receives a top score for return on
investment, but lags in most other metrics for an overall Performance ranking
10 26
Centrica has a strong return on its fixed assets, but lags the
average in return on sales 27
Centrica' s operating profit margin and
return on sales underperform the Key Player average 28
With a 25.2% return
on investment, Centrica surpasses all other Key Players 29
Centrica has an
above average Scale ranking of 12 30
Centrica has an above average Scale
ranking of 12 31
In Scale, Centrica ranks 12, scoring low only on
generation capacity 32
In generation capacity Centrica ranks in the lower
half of the rankings with 3.3 GW 33
Centrica' s gas volume is 7.2 times
that of its power volume 34
Centrica has a 4.1% market share of Key Player
power customers 35
At 46.3 TWh, Centrica ranks 16 in terms of power volume
36
Centrica has a 14% Key Player market share of gas customers 37
Centrica ranks 6 in terms of gas volume 38
Centrica ranks 9 and 13 in
terms of revenue and net income respectively 39
Centrica' s Growth ranking
is 12, despite below average revenue, operating cash flow and power volume
growth 40
Centrica' s Growth ranking is 12, despite below average revenue,
operating cash flow and power volume growth 41
Centrica excels in profit
and gas supply growth, but lags the average in other Growth metrics 42
Centrica has a price earnings ratio and operating profit margin below the
average (15 and 21%, respectively) 43
From 2001 to 2005, Centrica' s annual
profit growth (23.5%) far exceeded its revenue growth (-1.1%) 44
Centrica' s cash flow (-7.6%) and power volume (-6.3%) have declined from
2004-2005, while gas volume has grown by 23.7% 45
Centrica' s Exposure
ranking is 13, despite a very strong gas NTR score 46
Centrica' s Exposure
ranking is 13, despite a very strong gas NTR score 47
Centrica lags the
Key Player average in its financial and operational Exposure 48
Centrica' s
gas NTR as a proportion of its gas supply obligations is higher than the Key
Player average 49
Centrica' s power volume exceeds its generation output by
75%, leading to a negative NTR of 34,687 TWh 50
Centrica has a lower
debt-to-equity ratio than several top ten utilities 51
Centrica is less
leveraged than the average Key Player, yet occupies a median position on this
metric 52
Centrica' s cash flow growth has not kept up with its energy
volume growth 53
Centrica has a high proportion of Key Player gas and
power customers 54
Centrica has a Key Player market share of 4% in terms
of power customers 54
Centrica has a Key Player market share of 14% in
terms of gas customers 55
APPENDIX 56
Glossary 56
Datamonitor
Consulting 56
Databook 57
List of Tables
Table 1: Return on
fixed assets 57
Table 2: Return on sales 58
Table 3: Operating profit
margin 59
Table 4: Return on energy volume 60
Table 5: Return on
investment 61
Table 6: Net income / Net income of 94 leading utilities
62
Table 7: Net income / Net income of 94 leading utilities 63
Table
8: Net income / Net income of 94 leading utilities 64
Table 9: Net income
/ Net income of 94 leading utilities 65
Table 10: Revenue / Revenue of 94
leading utilities 66
Table 11: Revenue growth, 2001-2005 CAGR 67
Table
12: Profit growth, 2001-2005 CAGR 68
Table 13: Growth in operating cash
flow, 2004 to 2005 69
Table 14: Gas supply volume growth, 2004-2005 70
Table 15: Growth in power supply volume, 2004 to 2005 71
Table 16: Power
NTR / Power supply volume 72
Table 17: Gas NTR / Gas supply volume 73
Table 18: Debt leverage 74
Table 19: Growth in operational cash flow -
Growth in energy volume 75
List of Figures
Figure 1: The Key Players
are drawn from across a diverse range of markets 3
Figure 2: Datamonitor' s
Key Player Scorecard examines 31 leading utilities drawn from across Europe' s
competitive arenas 4
Figure 3: Key Players dominate power generation
capacity market share in the Wmed competitive arena 5
Figure 4: Key
Players dominate power generation output market share in the Wmed and CEE
competitive arenas 6
Figure 5: Despite ongoing industry consolidation, in
no competitive arenas do Key Players dominate power supply volume market share
7
Figure 6: Despite ongoing industry consolidation, in no competitive
arenas do Key Players dominate gas volume market share 8
Figure 7: The
Performance pillar combines 5 financial metrics to measure business
performance 10
Figure 8: The Scale pillar combines financial and
operational metrics to measure the size of a utility 11
Figure 9: The
Growth pillar measures the rate of growth of a utility' s financial and energy
resources 12
Figure 10: The Exposure pillar combines both operational and
financial measurements of risk 13
Figure 11: Centrica scores 34.3/100 on
Datamonitor' s European Utility Scorecard and ranks 14 out of the 31 Key
Players covered 15
Figure 12: Centrica scores 12.7/25 on the Performance
pillar, and ranks 10 out of 31 on this measurement 17
Figure 13: Centrica
scores 3.5/25 on the Scale pillar, and ranks 12 out of 31 on this measurement
18
Figure 14: Centrica scores 8.9/25 on the Growth pillar, and ranks 12
out of 31 on this measurement 19
Figure 15: Centrica scores 9.2/25 on the
Exposure pillar, and ranks 13 out of 31 on this measurement 20
Figure 16:
Centrica achieves an overall ranking of 14, with a utility score of 34.3
21
Figure 17: Centrica' s overall ranking is helped by its above average
Performance and Growth Scores 22
Figure 18: Compared to its top ten peers,
Centrica has a median level of Performance 23
Figure 19: Centrica scores
roughly average on Growth, yet underperforms on the Scale pillar 24
Figure
20: Centrica receives a top score for return on investment, but lags in most
other metrics for an overall Performance ranking 10 26
Figure 21: Centrica
has a strong return on its fixed assets, but lags the average in return on
sales 27
Figure 22: Centrica' s operating profit margin and return on sales
underperform the Key Player average 28
Figure 23: With a 25.2% return on
investment, Centrica surpasses all other Key Players 29
Figure 24:
Centrica has an above average Scale ranking of 12 31
Figure 25: In Scale,
Centrica ranks 12, scoring low only on generation capacity 32
Figure 26:
In generation capacity Centrica ranks in the lower half of the rankings with
3.3 GW 33
Figure 27: Centrica' s gas volume is 7.2 times that of its power
volume 34
Figure 28: Centrica has a 4.1% market share of Key Player power
customers 35
Figure 29: At 46.3 TWh, Centrica ranks 16 in terms of power
volume 36
Figure 30: Centrica has a 14% Key Player market share of gas
customers 37
Figure 31: Centrica ranks 6 in terms of gas volume 38
Figure 32: Centrica ranks 9 and 13 in terms of revenue and net income
respectively 39
Figure 33: Centrica' s Growth ranking is 12, despite below
average revenue, operating cash flow and power volume growth 41
Figure 34:
Centrica excels in profit and gas supply growth, but lags the average in other
Growth metrics 42
Figure 35: Centrica has a price earnings ratio and
operating profit margin below the average (15 and 21%, respectively) 43
Figure 36: From 2001 to 2005, Centrica' s annual profit growth (23.5%) far
exceeded its revenue growth (-1.1%) 44
Figure 37: Centrica' s cash flow
(-7.6%) and power volume (-6.3%) have declined from 2004-2005, while gas
volume has grown by 23.7% 45
Figure 38: Centrica' s Exposure ranking is 13,
despite a very strong gas NTR score 47
Figure 39: Centrica lags the Key
Player average in its financial and operational Exposure 48
Figure 40:
Centrica' s gas NTR as a proportion of its gas supply obligations is higher
than the Key Player average 49
Figure 41: Centrica' s power volume exceeds
its generation output by 75%, leading to a negative NTR of 34,687 TWh 50
Figure 42: Centrica has a lower debt-to-equity ratio than several top ten
utilities 51
Figure 43: Centrica is less leveraged than the average Key
Player, yet occupies a median position on this metric 52
Figure 44:
Centrica' s cash flow growth has not kept up with its energy volume growth
53
Figure 45: Centrica has a Key Player market share of 4% in terms of
power customers 54
Figure 46: Centrica has a Key Player market share of
14% in terms of gas customers 55
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