Energy supplier Centrica, which issued a profit warning in November, has today raised its cost savings target by £500m and said it would cut about 4,000 jobs by 2020.
The company, which also reported a 17.4% fall in full-year operating profit, said the additional savings would take the total targeted cost savings to £1.25 billion a year by 2020.
The utility, which owns household energy supplier British Gas and Bord Gáis Energy, shocked the market in November saying its full-year adjusted earnings per share would be around 12.5 pence, against forecasts of 15 pence.
It said this was mainly due to its North American and British businesses being hit by tough competition and warmer-than-expected weather cutting demand.
The company said it expects to reduce about 1,000 jobs on a like-for-like basis in 2018 and save about £200m.
Centrica expects to generate adjusted operating cash flow between £2.1 billion and £2.3 billion in 2018. Adjusted operating cash flow fell about 23% to £2.1 billion last year.
The company's adjusted operating profit fell to £1.25 billion in the year ended December 31, from £1.5 billion a year ago.
Total consumer energy supply customer accounts fell 6.6% to 24.4 million, while in the business segment it fell 5.9% to 1.3 million.
The UK's big energy suppliers have been under pressure from smaller rivals offering cheaper deals in the consumer market.
