SSE outlines big drop in profits

SSE boss Alistair Phillips-Davies

SSE expects profit for the six months to 30 September to be half that of the prior year.

In a trading update, the firm blamed high gas prices and weather effects on renewables output.

In July, SSE said it anticipated taking an £80m hit. That now looks more like £190m.

It expects to post an adjusted operating loss in its wholesale business and to break even in its retail business. For the full year, SSE said its Energy Portfolio Management business is at this stage set to post an adjusted £300m operating loss. Networks are set to post a single digit increase in profit.

“Lower than expected output of renewable energy and higher than expected gas prices mean that SSE’s financial performance in the first five months has been disappointing and regrettable,” said chief executive Alistair Phillips-Davies.

“The underlying quality of SSE’s businesses remains strong, with regulated networks and renewables providing the core of what will be an infrastructure-focused SSE group in the years ahead.  

“This year’s £1.7bn programme of capital investment, mainly in regulated networks and renewables, has continued to go well in recent months; and we are very pleased that the CMA’s provisional findings in relation to the planned SSE Energy Services transaction means we are on course to reshape and renew the SSE group by the end of our financial year.

“Reshaping and renewing the SSE group will support the delivery of our five-year dividend plan in the years ahead.”

See the full statement here.

Related stories:

Warm, still weather and high gas prices put £80m dent in SSE profit

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