23rd Jul 2015 06:44
LONDON (Alliance News) - SSE PLC Thursday said production across most all of its divisions, except coal, rose in the first quarter of the financial year, but it reported a fall in customer accounts and average customer consumption.
The FTSE 100-listed UK energy provider said the number of retail electricity and gas customers at the end of March had fallen to 8.49 million from 8.58 million at the end of March 2014.
Average customer consumption of electricity in the first quarter fell to 822,000 kilowatt hours from 853,000 kilowatt hours a year earlier. However, average gas consumption experienced a small lift to 75 therms per customer from 68 therms.
Despite the fall in accounts and consumption, production was up across most of its segments. Total electricity output from gas and oil fired power stations rose to 2.42 terrawatt hours from 2.19 terrawatt hours a year earlier, whilst electricity output from renewable sources increased to 2.2 terrawatt hours from 1.62 terrawatt hours.
Total output from gas production assets totalled 115 million therms, slightly up from 112 million therms.
The only segment to report a fall in production in the period was the coal-powered stations, which generated 0.41 terrwatt hours in the first quarter compared to 1.79 terrawatt hours a year earlier. SSE said this was due to "poor market conditions for coal-fired generation".
The fall in coal-powered generation was also due to the closure of Fiddler's Ferry, and SSE continues to proceed towards the closure of the remaining coal-fired capacity at its Ferrybridge power station by the end of March 2016.
"While there have been significant developments affecting all parts of the business, there has also been important progress in operational performance, which is essential for meeting the expectations of customers now and in the future," said Chief Executive Alistair Phillips-Davies.
"We remain focused on maintaining and developing a balanced range of energy businesses; and our capital investment programme has reached a series of important milestones in recent months," he added.
SSE said it continues to progress its capital and investment expenditure plan, which will total GBP1.75 billion for the full year and which is part of a GBP5.5 billion programme over the next four years.
The energy provider said it is also continuing to progress the disposal of assets worth around GBP1.0 billion.
"The programme is ongoing, and SSE continues to envisage securing proceeds from the sale of further onshore wind farm capacity and non-core assets to support a range of future investments," said SSE.
SSE said it is aiming for a minimum of 115.0 pence of adjusted earnings per share for the full financial year and reiterated its dividend increase will be at least equal to RPI inflation.
"All of this means that our financial outlook remains as set out in May and that we are in a good position to respond constructively to the key issues likely to emerge in the rest of this financial year and beyond," said Phillips-Davies.
By Joshua Warner; [email protected]; @JoshAlliance
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