2nd Feb 2021 08:49
(Alliance News) - SSE PLC on Tuesday affirmed its annual earnings forecast and said it expects a Covid-19 profit hit in the middle of a GBP150 million to GBP250 million range.
The company added that its disposal programme is on track and it has called on banks to review options for SGN, with SSE considering a sale of all or part of its stake in the gas distribution business.
The Perth, Scotland-based gas & electricity company said it still expects adjusted earnings per share for the year ending in March to be in its previously guided 85 pence to 90p range.
"The impact of coronavirus on full-year operating profit being towards the middle of the GBP150 million to GBP250 million range originally estimated in SSE's full-year results in June 2020," the company said.
It intends to recommend a full-year dividend of 80p per share plus retail price index for financial 2021, it added. The company continues to target annual retail price index increases to 2023 as set out in its five-year dividend plan.
SSE also updated on its progress up to the third-quarter ended December 31.
SSE said renewables output of 7,046 gigawatt hours in the nine months to December 31 was just over 5% below its planned output of 7,448 gigawatt hours. For comparison, output for nine months to December 31, 2019 was 7,115 gigawatt hours.
The company said it continues to make good progress on its five-year, GBP7.5 billion investment and capital expenditure plan. In November, financial close was reached on Dogger Bank A and B ahead of the 10% stake sale, and construction continues at Viking onshore and Seagreen offshore wind farms.
Finance Director Gregor Alexander said: "With solid operational performance and strong strategic execution, SSE is well positioned as we move towards the end of our financial year. Our robust business model is mitigating the impact of coronavirus, our disposal programme is proceeding at pace and at Dogger Bank we have shown yet again that we can develop opportunities and create value from world-class assets.
"With a number of uncertainties lifting and an increasingly supportive policy environment which further underpins our clear strategic focus on the transition to net zero, SSE is on a strong strategic footing for the rest of 2020/21 and beyond," he added.
Updating on its asset sales scheme, SSE said it is "on track to realise in excess of GBP2 billion from a disposals programme".
SSE added: "The completion of the sale of its Multifuel assets for GBP995 million and the sale of its gas exploration and production assets in December underlined SSE's ESG credentials and focus, whilst taking expected proceeds from agreed or completed disposals to over GBP1.5 billion.
"SSE has appointed banks to review options for divestment of all or part of its stake in SGN and will decide on approach and timings before the end of this financial year."
SSE owns roughly a third of SGN, a gas distribution firm in the UK charged with looking after underground pipes and home gas meters.
Shares in SSE were up 0.5% at 1,520.00 pence in London on Tuesday morning in London.
By Zoe Wickens; [email protected]
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