Centrica Returns to Profit Amid Restructuring -- Update

By Neanda Salvaterra

LONDON--U.K. utility Centrica PLC (CNA.LN) on Thursday said it swung to a net profit for 2016 after slashing jobs and restructuring its operations.

The company, which produces oil and gas in addition to selling energy to consumers, said net profit was 1.67 million pounds ($2.08 million) for the period ended Dec. 31, compared with a loss of GBP747 million a year earlier.

Profit advanced despite a 3% drop in revenue to GBP27.10 billion from GBP27.97 billion over the period.

Centrica's energy supply business was hurt by lower commodity prices on tariffs in the U.K. and North America. Its exploration and production arm was similarly affected.

The U.K.'s biggest supplier of gas and electricity has remained on target to trim its business. It has reduced its workforce by over 3,000 employees while realizing GBP384 million in cost savings.

Chief Executive Ian Conn said 2016 was "a busy year for the team, but we have delivered a lot, and Centrica enters 2017 a stronger company."

The company declared a final dividend for the period of 8.40 pence a share, against 8.43 pence for the previous year.

-Write to Neanda Salvaterra and [e-mail]

(END) Dow Jones Newswires

February 23, 2017 04:17 ET (09:17 GMT)

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