SSE swings to interim profit; warns on UK political uncertainty
SSE
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08:20 25/04/24
UK energy utility SSE swung to an interim profit as it lifted full-year earnings estimates, but warned of political uncertainty due to the Labour Party plan to renationalise energy companies if elected next month.
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The on Wednesday booked a £489.1m exceptional charge against its UK household energy supply business which it is selling to Ovo in a £500m deal.
First-half pre-tax profit came in at £128.9m, compared to loss of £284.6m last year after stripping out the retail business. Earnings per share from continuing operations were 6.2 pence, compared to loss of 26.4 pence a year ago.
Looking ahead, SSE said raised its full year adjusted earnings per share forecast to 83 – 88p from a previous range of 80 – 85p after the company realised the structure of its proposed gas production asset disposal meant the hedging contracts would be retained and not accounted for as held for sale.
Adjusted pre-tax profit was £263.4m compared to £229.4m a year earlier. Adjusted earnings per share were 18p, up from 16.4p.
Total revenue from continuing operations fell to £3.05bn from £3.32bn.
The interim dividend was cut by 18% to 24p a share reflecting policy outlined in May 2018. SSE said it intended to recommend a full-year dividend of 80p a share.
SSE also benefited from a reinstatement of capacity market payments after the subsidy scheme, designed to ensure power supplies during the winter, was ruled legal by the European Commission.
The company said it faced a "complex and challenging operating environment" in the context of the general election campaign and the opposition Labour Party's pledge to renationalise the energy industry " and public policy outcomes becoming the subject of judicial processes".