Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1711
    +0.0017 (+0.15%)
     
  • GBP/USD

    1.2639
    +0.0017 (+0.13%)
     
  • Bitcoin GBP

    55,368.52
    -999.85 (-1.77%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

Centrica says cost savings plan on track despite difficult conditions

By Nina Chestney

LONDON (Reuters) - British utility Centrica said on Monday it is on track to achieve cost savings of more than 100 million pounds ($141 million) this year despite difficult trading conditions.

In a trading update, Centrica said COVID-19 continued to impact the company in the first quarter as electricity demand from its UK business customers was down around 15%.

Residential boiler installations were down 11% compared with the first quarter last year, and non-essential service visits were postponed to protect staff and customers from the risks of catching and spreading COVID-19.

"As expected, trading conditions have remained tough in the year to date," said Chris O’Shea, Group Chief Executive.

ADVERTISEMENT

"However, the modernisation of our group remains on track and the difficult, but necessary process to move colleagues onto new terms and conditions is now complete," he added.

Centrica said 98% of its UK staff have accepted new contracts.

The British Gas owner has sought to reinvent itself as an energy service provider, selling upstream assets, and restructuring plans announced last year are expected to lead to a total reduction of around 5,000 roles across the group when compared with the start of 2020.

This year has seen a series of industrial actions from a portion of British Gas’ services engineer staff over terms and conditions.

The group's net debt, including margin cash, at the end of the first quarter was 0.5 billion pounds, down from 3 billion pounds at the start of the year.

Centrica said it was not providing specific earnings or cash

flow guidance for this year. It will release its interim results on July 22.

($1 = 0.7113 pounds)

(Reporting by Nina Chestney, editing by Louise Heavens)