CNA Centrica Plc

By Selina Williams

LONDON--U.K. utility Centrica PLC said Monday it is trading in line with guidance with colder than normal weather in the U.K. and North America resulting in higher energy consumption.

The company said it expects its improved profitability in its energy retail business will be more than offset by the impact of lower commodity prices on its exploration and production business.

Centrica said it expects to produce 75 million barrels of oil equivalent this year from its oil and gas fields, which are mostly located in the North Sea.

The company said it is on track to meet its target to cut capital expenditure in its upstream business by 25% to around 800 million pounds ($1.2 billion) this year and a 40% reduction to around GBP650 million next year.

Write to Selina Williams at Selina.williams@wsj.com