Centrica to cut 3,000 jobs by year-end

Centrica plc, an energy and services company, has announced plans to lay off 3,000 employees by the end of 2016. 

Centrica’s E&P business holds assets in the UK, the Netherlands, Norway, Western Canada and Trinidad and Tobago.

In the company’s full year 2015 report on Thursday, the company said that its £750 million cost efficiency programme was underpinned and on track to be completed by 2020.

According to the company, reduction in direct headcount of around 3,000 roles is expected in 2016.

The company expects to deliver £200 million of savings in 2016, and it is on track to deliver two-thirds or £500 million per annum by the end of 2018.

“We remain on track to achieve the savings and have already made a number of restructuring announcements across the Group, which will result in the reduction of around 2,000 roles. We expect to achieve a reduction in direct headcount of around 3,000 by the end of 2016, excluding the impact of increased headcount in smart metering and in growth areas such as our Connected Home business,” the company said in Thursday.

Centrica’s revenues dropped 5% from £29.4 billion in 2014 to £28 billion in 2015.

The company’s statutory (loss) for the year 2015 was £747 million, versus £1,012 million in 2014.

The company reported post-tax impairments and provisions of £1,477 million on E&P assets and £485 million on power assets, reflecting the end-year commodity price environment.

The energy company announced it would reduce its gas and oil production levels to 40 – 50mmboe of gas and oil per annum which requires between £400-£600 million of capital, with plans to reduce expenditure further in 2017 and 2018 if current low price environment is sustained.

This compares to gas and oil production and capital expenditure levels respectively of 79mmboe and £728 million in 2015, and 80mmboe and £1,086 million in 2014.

Offshore Energy Today Staff

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