Drop in profits as energy firm anticipates impact of Covid crisis

SSE yesterday reported a sharp fall in its pre-tax profits last year.

The Perth firm’s profits were £587m for the year ending March 31 2020, down from £1.3 billion in 2019.

SSE’S 55% profit drop was also met with a capital and investment expenditure dip of 5% to £1.3bn.

However, the firm also presented figures adjusted to reflect the impact of the Covid19 crisis, which showed profit before tax up 49% to £1bn.

SSE sold its domestic energy business to OVO Energy in January.

OVO has subsequently started a redundancy process with the aim of cutting 2,600 jobs, including hundreds of contact centre positions based in Perth.

Richard Gillingwater, chairman of SSE, said: “2019/20 was a year of progress for SSE.

“Financially, there was a solid recovery from the previous year. Strategically, we reshaped the group with the sale of Energy Services and increased our focus on our core businesses of regulated electricity networks and renewable energy.

“Operationally, these businesses made significant progress towards our strategic priorities and ambition to be a leading energy company in a net zero world.

“Since March, SSE’S overriding priority has been to support the safe and reliable supply of the electricity upon which the people and organisations responding directly to coronavirus depend and the commitment of people across SSE in challenging circumstances has been outstanding.”

SSE said it expects to see a coronavirus impact on operating profit of between £150m and £250m before mitigation.

Mr Gillingwater added: “We have put in place a comprehensive plan to achieve the related objectives of sustaining the dividend payments, which provides vital income for people’s pensions and savings, and promoting the long-term success of SSE for the benefit of all its stakeholders.”

SSE’S head office in Perth.