14th May 2018 08:27
LONDON (Alliance News) - Centrica PLC said Monday financial results for the first four months of 2018 had been "good" despite losing energy customers and expecting lower oil and gas production for the full year than it had previously.
For the four months ended April, the FTSE 100-listed utility said it expected adjusted operating cash flow between GBP2.1 billion and GBP2.3 billion.
Closing net debt is anticipated between GBP2.50 billion and GBP3.00 billion. Centrica expects to pay a full-year dividend per share of 12.0 pence, flat on the year prior.
"2018 has begun well and overall financial performance in the year to date has been good, despite high competitive intensity in all our markets," Centrica Chief Executive Officer Iain Conn said. "Our customers continue to see new products and propositions and stable service levels, other than in UK Home Services which was impacted by extreme weather."
Consumer accounts, however, fell a further 62,000 in the first four months of the year. Energy supply accounts fell 11,000 ion the UK and 28,000 in North America.
"We are making good progress against our cost efficiency targets," Conn added. "While the outcome of regulations to impose a temporary cap on all default energy tariffs in the UK remains uncertain, we continue to participate actively in the consultation process. Our focus remains on performance delivery and financial discipline and we remain on track to achieve our 2018 group targets."
During the first four months of the year, Centrica generated GBP200 million in additional efficiency savings. This is part of its increased GBP1.25 billion per year cost efficiency programme.
Group capital investment is expected to be less than GBP1.10 billion, including GBP500 million for Spirit Energy. Centrica's exploration and production business - Spirit Energy - is now expected to achieve production at the lower half of the 50 to 55 million barrels of oil equivalent target for the full year. This was after unplanned outages and lower volumes from its operations.
Centrica will release its half-year results on July 31.
Shares in Centrica were 1.0% higher at 148.67 pence on Monday.
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