Centrica axes 800 jobs in first quarter; on track to hit 2016 targets

Centrica said it expected to axe 3,000 jobs in 2016 as part of its cost cutting plans with 800 gone in the first quarter of the year.

In a trading statement, the company said UK home energy supply accounts were down 1.5% in the first quarter primarily as a result of significant long term contracts roll-off. Despite this the UK business had returned to profitability.

Group capital investment including small acquisitions expected to be no more than £1bn in 2016, of which around £500m is expected to be in exploration and production.

It said there were “propositions” planned for launch in the second quarter and the third gas price reduction since the start of 2015 kicked in on 6 March.

The North America energy supply and services business performed well against the backdrop of an "exceptionally" warm winter.

Centrica said debt would be cut to £4.4bn in the first quarter, benefiting from strong working capital management and seasonal phasing of cash flows.

It added that £200m of efficiency savings were expected to be delivered in 2016 as part of the group’s £750m annual cost efficiency programme, with like-for-like operating costs expected to be lower in 2016 than in 2015.