24th Mar 2016 07:25
LONDON (Alliance News) - SSE PLC on Thursday said it expects adjusted earnings per share to have fallen in the current financial year and said those earnings continue to face "significant uncertainties", but said it will raise its dividend.
The utility firm said it expects to report adjusted earnings per share, which excludes certain exceptional items, to be in the range of 117.0 to 119.0 pence for the financial year to the end of March, which would be down from the 124.1p reported in the previous year.
On a more positive note, SSE said the increase in its dividend for the year is expected to be "at least" equal to RPI inflation, which is currently expected to be around 1%.
"In view of the wider energy sector conditions, SSE continues to recognise that adjusted earnings per share is subject to significant uncertainties. This means that its dividend cover, based on dividend increases that at least keep pace with RPI inflation, could range from around 1.2 times to around 1.4 times over the three years to 2017 to 2018," said the company.
SSE paid a dividend of 88.4 pence per share in the last financial year, which was up 2% and covered 1.4 times by its adjusted earnings per share.
SSE's adjusted net debt and hybrid capital is expected to around GBP8.50 billion at the end of March, which would be up from GBP7.90 billion at the end of the first half in September. That is mainly due to the acquisition and resulting investment in new gas production and plant assets acquired in October 2015, and unfavourable movements in foreign exchange rates, it said.
By Joshua Warner; [email protected]; @JoshAlliance
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