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


Warm, still weather and high gas prices hit SSE’s operating profits for the three months to 30 June.

The company said while warmer than average temperatures (1.5 degrees centigrade higher than the 30 year average) led to higher snow melt and increased hydro output 25% year-on-year, hydro generation was still 20% lower than expected.

Warm temperatures also led customers to use around 10% less gas, while the still conditions meant wind farm output was 15% lower than planned.

Year-on-year onshore wind output was down 10% to 766GWh while offshore wind generation fell 16% to 213GWh.

In a trading update, the company said the result, combined with “persistently high” gas prices will hit adjusted operating profit by around £80m for the quarter.

The company will hold a General Meeting today. Should shareholders back its proposed deal to create a new company with Npower, SSE said the transaction is on track to complete in the current financial year, subject to regulatory approval.

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