Centrica on track to hit 2015 target
- Business & Finance
Centrica plc, a British energy and services company, has issued a trading update, according to which its 2015 full year earnings outlook is in line with expectations.
The company said this was despite the impacts from a second gas price reduction in British Gas Residential and previously reported system implementation issues in British Gas Business.
Following the strategic review, adjusted operating cash flow delivery is a major focus, and despite recent commodity price weakness the Group remains on track to deliver a baseline level of over £2 billion ($3.03B) in 2015, Centrica said on Thursday.
According to the company, in the current environment, capital and operating efficiency in Exploration and Production has been a priority and the business is on track to deliver capital expenditure below £800 million ($1.2 billion) in 2015 and below £600 million ($907.8M) in 2016, when the company also expects to deliver an annual reduction in E&P cash production costs of £100 million relative to 2014.
For the Group as a whole, organic capital expenditure is expected to be slightly below the company’s target of £1.05 billion in 2015.
Iain Conn, Centrica Chief Executive, said: “2015 has been a difficult year, and against challenging external factors Centrica is establishing a solid base from which to deliver for our customers and shareholders. We are seeing underlying performance improvement against a softening commodity market, and have concrete plans for executing our strategy.”