The Courier & Advertiser (Fife Edition)
Renewables output falls but SSE on growth track
INDUSTRY: Perth-based utility set to hit full-year dividend target
Perth-headquartered utility company SSE is on course to meet its principal full-year financial objective despite trading in two of its main divisions being below last year’s levels.
In a pre-close trading update ahead of its first half results on November 9, the power giant said it expected to achieve its target of generating a dividend at least equivalent to RPI inflation for the full year.
On the upside, the company said it expected operating profit from its Networks division to increase slightly in the first six months of the 2016-17 financial year. However, it expects its wholesale division to be negatively impacted as a result of “significantly lower output of electricity from renewable sources” than was generated in the same period last year.
The group said the impact was likely to be partially offset by an improvement in the economics of its thermal output.
SSE said its retail offering is also expected to be negatively affected in the half-year period after being hit by increasing non-energy costs.
The number of energy supply account holders has fallen in the past 12 months and its enterprise division is expected to deliver lower operating profits.
“Our focus is on safe and efficient operations and investments across the SSE group and we are satisfied with what has been achieved in the first half of the financial year,” SSE finance director Gregor Alexander said.
“Providing electricity and gas and related services is an important but complex task that requires the careful management of the wide range of issues that affect them.
“We are committed to managing these issues as effectively as possible, so that we continue delivering good services for our customers and fair returns for our shareholders.”
Of its major ongoing projects, SSE said it had made progress since the summer on Stronelairg windfarm.
It said the project would expect to be accredited under the Renewables Obligation Certification scheme and said a final investment decision would be taken before the end of this year.