Centrica renews £2.4bn revolving credit facility

Centrica on Friday said it had rolled over a £4.2bn credit facility with a maturity date of 2024.

The deal replaces the majority of the company's existing credit facilities which were due to expire in 2021. The new five-year facilities have two separate one-year extension options exercisable by mutual consent on the first and second anniversary of the facility.

Chief financial officer Chris O'Shea said the deal "positions the company's balance sheet well for the future".

The energy supplier on Thursday said the government-imposed price cap would hit 2019 results as it lost customers but reported a rise in operating profits.

The company said it would sell its North American franchisee home services business Clockwork for £230m as recovery in the region was slower than expected, adding that it was targeting £500m in non-core divestments.

The company lost 742,000 of its 25m household energy customers last year. Home energy unit profits fell 18% to £668m.

Higher commodity prices boosted adjusted operating profit rose 12% to £1.39bn bolstered by higher commodity prices.

Centrica's described the financial performance as “mixed, against a backdrop of volatile commodity prices, extreme weather patterns, continued competitive pressures and political and regulatory scrutiny and intervention”.

The company also said the price cap, lower nuclear volumes and continued low exploration and production would squeeze cash flow by £350m, with around £100m of the reduction also expected to impact 2019 adjusted earnings. Centrica has a target cashflow range of £2.1bn - £2.3bn.