Case Study Of Centrica

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Rationale Behind Choosing Centrica PLC
Centrica PLC (“Centrica” or “Company”) is a multidimensional energy conglomerate based in the United Kingdom (“UK”) and is listed on the London Stock Exchange whilst also being a component of the FTSE 100 index. At it’s core, Centrica is engaged in the generation of electricity, exploration and production of natural gas, provision of household services and supplies electricity and gas to end users (Private and Commercial) in North America and Europe. For these reasons, I have identified it as the subject company of this assessment
Centrica Operating Model
From my research, Centrica’s operating model is diverse as the company seeks to maximize profits by operating across all segments of the energy value
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British Gas – This is the foremost supplier of gas and electricity in the UK and is responsible for providing energy to over 10 million private British consumers as well as over 800,000 businesses in the UK. British Gas through a subsidiary, British Gas Services, also provides installation Services and maintenance of heating and cooling systems whilst also helping customers with advice and products to enable the efficient consumption of energy.
b. Centrica Energy – Considered to be the leader in gas production in the UK whilst also having a presence in Norway, The Netherlands and North America. Centrica energy also owns and manages gas-fired power stations, own interests in UK nuclear power stations as well as offshore wind farms
c. Centrica Storage – With ownership of over 70% of the UK’s gas storage facility, Centrica Storage is viewed as the largest. Services include provision of storage infrastructure for traders and other utility provides. Other services include gas processing and subsequent distribution.
d. Newfield Exploration UK – Acquired by Centrica PLC in October 5, 2007, as a strategic initiative to gain access as well as increase ownership of natural gas reserves in the UK. According to Centrica, this acquisition would add net gas reserves of 300 billion cubic feet over the next three years which at present, is equivalent to a fifth of Centrica’s current UK gas
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