- Centrica (OTCPK:CPYYF) agrees to sell its Spirit Energy’s oil and gas assets in Norway to Equinor (NYSE:EQNR) and Sval Energi for $1.08B.
- The assets sold represent 52% of Spirit Energy's production in 2020 and 63% of total proven and probable reserves.
- During H1 2021, Spirit Energy contributed £104M to Centrica's adjusted operating profit of £262M.
- Centrica says the sale further simplifies and de-risks its business model while strengthening the balance sheet and reducing earnings and cash flow volatility.
- RBC analysts say the sale should fetch nearly £400M in proceeds after the closing of hedging-related costs and minority distributions, adding that it is a positive that Centrica has passed on the £830M of decommissioning costs.