Centrica narrows focus to Europe after sale of Canadian assets

Centrica narrows focus to Europe after sale of Canadian assets

UK energy company Centrica (LSE:CNA) has become a pure-European player following the £413 million sale of parts of its Canadian assets.

The multinational utility firm confirmed the sale of its 60% stake in in the Canadian exploration and production (E&P) joint venture, CQ Energy Canada Partnership to a consortium of Asian investors.

After adjustments, Centrica will reportedly receive a net sale figure of approximately £240 million.

“In line with its strategy announced in July 2015, the divestment means Centrica’s E&P activity will now be focused solely on European assets, with the group having completed the sale of its gas assets in Trinidad and Tobago in May 2017,” said the Centrica’s board in a statement.

In a further statement on year-end 2016 performance, the company also confirmed it would be leaving the wind energy sector after the sale of its offshore UK Lincs wind farm.

Centrica aims to lower its net debt to £2.5-3 billion by the end of 2017, with proceeds from the sale likely to be used towards achieving its debt reduction target.

@RGNonline