- Other investors include EDF, La Caisse
- Shares up 19% year-to-date
- Investment worth £1.3 billion
Shares in Centrica (CNA) made healthy gains this morning after the British Gas owner said it was taking a 15% stake in the Sizewell C nuclear plant.
The investment, worth £1.3 billion, will see Centrica investing in the nuclear plant alongside the UK government, global investment group La Caisse, energy giant EDF and Amber Infrastructure Group.
WHAT DID THE CEO SAY?
Chris O’Shea said: ‘The UK needs more reliable, affordable, zero carbon electricity, and Sizewell C will be critical to supporting the country's energy system for many decades to come.
‘That's why I'm delighted to be announcing this milestone investment which will see Centrica commit £1.3 billion for a 15% equity stake in the project and deepens our long-standing involvement in the UK nuclear industry.
‘This isn't just an investment in a new power station - it's an investment in Britain's energy independence, our net zero journey, and thousands of high-quality jobs across the country.’
COMPELLING INVESTMENT
Russ Mould, investment director at AJ Bell said: ‘Centrica’s shares got a boost after it announced a deal to buy a 15% stake in the Sizewell C nuclear plant.
‘The company called it a ‘compelling investment’ for shareholders and the UK, and the market certainly likes the fact it is playing a major role in this important energy generating asset.
‘The overall cost of the project is another matter. Sizewell C might generate a significant amount of jobs and generate enough energy to power six million homes, yet its overall cost has nearly doubled from the previous estimate to now stand at £38 billion.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Martin Gamble) own shares in AJ Bell.
