29th Sep 2014 08:23
LONDON (Alliance News) - SSE PLC said Monday it expects to meet its expectations for the full year as it said its divisions remains profitable, though it said it is still contending with a challenging operating environment.
The group said its expects profitable trading for its retail, network and wholesale segments. The networks business has generated an increase in operating profit in the six months to September 30, but it sounded some caution on the retail and wholesale businesses.
In retail, though the group said it expects trading to be profitable, its Energy Supply business is expected to incur an operating loss for the period, albeit lower than previous losses.
The wholesale segment is also profitable, the group said, though it expects operating profit from the business to be lower due to lower output from renewable and thermal energy sources and a fall in profits from gas production owing to lower day ahead wholesale prices.
The group said it expects full-year profit to be ahead year-on-year, despite a larger proportion of its full-year profit being earned in the first half this year. It said it remains on track to meet its full year expectations.
"We said at the start of the financial year that the issues facing the energy sector are very challenging, and that has proved to be the case. Energy is a long-term business, however, and we are confident that focusing on positive engagement with our Retail and Networks customers, maintaining a strong operational focus and investing in the right assets, is the right approach," Gregor Alexander, SSE's Finance Director, said.
"The challenges are unlikely to abate in the second half of the financial year but our continuing operational and financial discipline should enable us to meet the needs of customers and provide a fair return to investors," Alexander added.
SSE shares were down 0.1% to 1,520.00 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
SSE