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Centrica ticks higher as it offloads Canadian E&P joint venture for £240mln

The sale to a consortium of investors is in line with Centrica’s strategy to focus on its European assets

onshore oil rig
Analysts at Jefferies said the price tag was in line with their estimate of £267mln

British gas owner Centrica PLC (LON:CNA) ticked higher in early deals after it agreed a deal to sell off its 60% stake in its Canadian exploration and production joint venture for £240mln in cash.

The sale means all of Centrica’s E&P activity is now focused on its European assets, in line with the strategy it set out back in 2015.

It follows the recent disposal of its gas assets in Trinidad and Tobago, which it sold off to Royal Dutch Shell PLC (LON:RDSB) for US$30mln at the end of last year.

Assuming the deal gets the various approvals required, it is expected to go through in the second half of this year.

Analysts have suggested that Centrica will use the cash influx to pay down some of its debt.

Shares edged 2.5% higher in early deals to trade at 203.7p.

Quick facts: Centrica PLC

Price: 41 GBX

LSE:CNA
Market: LSE
Market Cap: £2.39 billion
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