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Bloomberg
Centrica Plc stepped up its cost cutting drive and planned the sale of nuclear assets as its profit dropped. The UK’s biggest energy supplier increased its cost savings target by about 66 percent to 1.25 billion pounds ($1.73 billion) a year by 2020, Centrica said in its full-year earnings statement. It intends to sells its 20 percent stake in EDF SA’s UK nuclear operations.
The energy supplier is suffering from efforts in the UK to cap some household energy bills and tougher trading conditions in its North American subsidiary. Its market share is also shrinking because of new competition from smaller suppliers. The stock is trading near its lowest level in almost two decades, down 41 percent last year and the worst performer in the 29-member Stoxx 600 Utilities Index. “Our financial result in the second half of 2017 was weak,†Chief Executive Officer Iain Conn said in a statement. “Our focus today is on performance delivery and financial discipline — on demonstrating top line growth as we deliver improved service and new propositions for our customers, and driving efficiency as hard as possible.†The utility is maintaining its dividend. Adjusted operating profit for the full year was 4.6 percent below the average analyst estimate.