Centrica raises cuts target to £500mn
The British utility and owner of British Gas, Centrica, has confirmed changes to its cuts.
The firm has expanded its total cost savings target to £500mn (US$693.7mn), which it aims to cut by 2020.
The company has also announced that it plans to cut 4,000 jobs in the same period.
In 2018 alone, the firm aims to reduce spending of £200mn ($277.5mn) and to lose 1,000 jobs.
In November last year, Centrica’s full-year adjusted earnings fell to 12.5 pence ($0.17) per share, down from the forecasted 15 pence ($0.21).
“Centrica’s update on its 2017 results confirms the weak performance in the latter part of the year but paints a picture of a company more in control than its quarterly update last November which saw a 15% one day fall in its share price,” commented Professor David Elmes of Warwick Business School, Head of Global Energy Research Network.
“The company’s shares are up about 4%, but shareholders are still looking at a 40% slide over the last year,” he added.
“CEO Iain Conn will point to progress in his repositioning of the company: more customers buying services to use energy more effectively, a shift in the company’s focus from finding gas or generating electricity to serving customers and finding efficiencies that cut costs by 10%.”
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