Centrica CEO Iain Conn. Image courtesy of Centrica.

UK-based Centrica said Wednesday that it will cut another 3,000 jobs as part of a broader cost cutting program.

The company said it will reduce its direct headcount by about 3,000 roles in 2016.

Details about the layoffs have not been disclosed yet.

Those cuts are in addition to the 2,000 role reductions Centrica previously announced.

The layoffs are part of a $1.07 billion cost efficiency program that is on track to be completed by 2020.

Centrica said it expects the program to deliver savings of about $287 million , or £200 million, in 2016 and said it also on track to deliver about $718 million in yearly savings by the end of 2018.

The company reported $1.23 billion in full year adjusted earnings for 2015 on $40.23 billion revenues compared to $1.29 billion in full year adjusted earnings on $42.24 in full year revenues in 2014. 

Centrica booked $2.09 billion in full year adjusted operating profit, a 12 percent year over year drop, and an adjusted operating cash flow of $3.23 billion, up 2 percent over the previous year.

Chief executive Iain Conn said the company’s current projections indicate it can “more than balance sources and uses of cash flow out to 2018” at flat real commodity prices of $35 per barrel of Brent oil,  35p/therm UK NBP gas and £35/MWh UK power.

“2015 provided a very challenging environment for Centrica. Commodity prices continued to fall during the year, creating major challenges for our E&P and nuclear power businesses… In addition, the actions we have taken since the start of 2015 on the dividend, capital expenditure and costs mean the Group is robust in this much lower oil and gas price environment,” Conn said.

Conn added that, if low prices persists beyond 2016, Centrica has the “flexibility” to trim its E&P capital expenditure further to the bottom end of its $574 to $861 million range.


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