SSE sees earnings at lower end; still plans to pay divi

Energy supplier SSE said earnings would be at the lower end of guidance given in January and said it would still pay its full year dividend despite the impact of the coronavirus on markets.

The company had forecast adjusted earnings per share of 83p to 88p a share “before any Covid-19-impacts that may become apparent and need to be reflected in the financial statements for the year”.

SSE said the pandemic's spread to the UK and Ireland started late in its fiscal year and had not impacted on results, and so it planned to recommend a full-year dividend of 80p a share.

The company added that it had agreed with its auditors EY that the steps they were both taking in relation to Covid-19 meany it will take longer to prepare and audit SSE's financial statements for 2019/20.

“As a result, SSE now aims to publish these in the second half of June, with a planned date to be confirmed as soon as possible,” the company said.

Looking ahead, the company said it expected adjusted operating profit for its core businesses would show a high single-digit percentage year-on-year decrease for SSEN Transmission, SSEN Distribution and investment in SGN.

It also forecast a 25% year-on-year increase from its renewables unit, mainly due to a full year of output from the Beatrice offshore wind farm. Total renewable generation output was expected to be close to 11.4TWh, including over 0.6TWh of constrained-off generation;

Capital and investment expenditure would be slightly higher than forecast at £1.5bn with net debt and hybrid capital of around £10.7bn on March 31, reflecting 2020 the stage of projects in development and movements in foreign exchange rates.