17th Jun 2020 08:57
(Alliance News) - SSE PLC on Wednesday reported a fall in full-year profit on exceptional charges, though it continues to target delivery of its five-year dividend plan.
Shares in FTSE 100-listed utility SSE, which is based in Perth, Scotland, were 9.3% higher in London on Wednesday morning at 1,387.00 pence each.
For the year ended March 31, SSE posted a pretax profit of GBP587.6 million from continuing operations, down sharply from GBP1.30 billion the year before.
"Reported results for the year to 31 March 2020 were significantly lower than the previous year, reflecting pre-tax exceptional charges of GBP738.7 million recognised during the year; both in relation to the reshaping of SSE (with the sale of SSE Energy Services and the closure of Fiddler's Ferry coal fired power station) and a deterioration in market conditions," SSE explained.
Adjusted pretax profit rose sharply to GBP1.02 billion from GBP685.1 million the year before.
Revenue slipped 6.8% to GBP6.80 billion from GBP7.30 billion.
Total generation output was down 8.2% to 28,293 gigawatt hours from 30,835 the year before, with thermal generation down 16%.
The company's total regulatory asset value ended March 31 at GBP9.11 billion compared to GBP8.73 billion at the same point the year before.
Gillingwater added: "2019/20 was a year of progress for SSE. Financially, there was a solid recovery from the previous year. Strategically, we reshaped the group with the sale of Energy Services and increased our focus on our core businesses of regulated electricity networks and renewable energy. Operationally, these businesses made significant progress towards our strategic priorities and ambition to be a leading energy company in a net zero world."
SSE recommended a full-year dividend of 80 pence, down 18% from 97.5p the year before.
Looking forward, SSE continues to target delivery of its five-year dividend plan.
"It is still too soon to predict with accuracy the full human, social, economic and business impact of coronavirus; but we have put in place a comprehensive plan to achieve the related objectives of sustaining the dividend payments which provides vital income for people's pensions and savings - income which is now more important than ever; and promoting the long-term success of SSE for the benefit of all its stakeholders," said Gillingwater.
Elsewhere, SSE has approved a final investment decision for the 103-turbine, 443 megawatt Viking onshore wind farm.
Located in Shetland, Viking is wholly owned by SSE Renewables having been developed in partnership with Viking Energy Shetland.
SSE expects the wind farm to hold a load factor of 48%.
"SSE now awaits the outcome of the consultation on Ofgem's minded-to position to approve a 600MW transmission connection from Shetland to the GB mainland, expected in July 2020. Final approval from Ofgem was conditional on Viking wind farm reaching a positive final investment decision which this announcement confirms. The transmission connection is critical for Viking to proceed," the utility added.
The capital expenditure for the wind farm is expected to be about GBP580 million.
SSE Renewables Managing Director Jim Smith said: "Viking wind farm will help kickstart the green economic recovery, bringing much needed low-carbon investment to Shetland. In doing so, it will trigger the building of the associated transmission connection to the islands, which will itself help resolve longstanding security of supply issues on the island."
By Paul McGowan; [email protected]
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