SSE flags up some earnings impact on both wholesale and retail arms
Perth-based utility SSE yesterday warned that its wholesale division will be hit by a fall in renewable electricity generated during the first half of the year, but said that it should still meet its full-year dividend target.
In a pre-close trading update, the company said there had been a significant fall in the output of electricity from renewable sources compared to the same period last year. This will be “partly offset” by improvements in thermal generation.
In addition, SSE said rising costs will impact the retail division, and the enterprise division will have lower operating profits amid falling numbers of account holders.
However, it said the networks division should report a slight increase in earnings. The group, headed by chief executive Alistair Phillips-davies, stressed its wholesale and retail businesses are prone to the impact of short-term issues.
For the financial year, SSE anticipates meeting its “principal financial objective” of an increased divi payment at least equal to RPI inflation. Adjusted earnings for the full year are expected to reach 120p per share, with an equivalent figure of “at least” 33p for the first half.