16th Jul 2020 09:04
(Alliance News) - SSE PLC on Thursday said it expects the economic damage caused by the coronavirus on the wider economy to have adverse, albeit temporary, effects on several of its businesses during financial 2021.
The energy supplier said it expects the "greater impacts" from the pandemic to occur during the first six months of the year, which began on April 1.
Shares in Perth, Scotland-based company were up 1.3% at 1,381.51 pence each on Thursday morning in London.
Chief Executive Alistair Phillips-Davies said: "Whilst the wider economic implication of the coronavirus continues to impact on the business, we've been investing in the green economic recovery and progressing our GBP7.5 billion capex plan of low-carbon investments, primarily in renewables and electricity networks.
"At the same time, we are delivering the comprehensive financial plan we set out last month at our full year results, continuing work on our disposal programme and successfully issuing over GBP1 billion in hybrid bonds. Although the key months of our financial year are still ahead of us, the steps we are taking leave us well-placed to deliver on our financial objectives of promoting the long-term success of the company and paying dividends."
SEE expects the hit to operating profit for the first three months to be in line with expectations, with the damage to the year ending March 30, 2021, still anticipated to be in the range of GBP150 million to GBP250 million.
SSE said it continues to keep this assessment under review and will provide guidance on adjusted earnings per share later in the financial year.
The FTSE 100-listed company added that it continues to target the delivery of the five-year dividend plan to financial 2023, including an 80 pence full-year dividend for 2021. SSE intends to declare a 24.4p interim dividend in November.
For the three months to June 30, the company's renewable energy business saw energy output of 1,988 gigawatts, down from 2,352 gigawatts planned for the quarter and 1,879 gigawatts recorded a year ago.
The drop in renewable electricity output in the quarter was attributed to poor weather conditions.
SSE's thermal business recorded electricity generation of 4,260 gigawatt, up from 3,810 gigawatt recorded a year ago.
By Tapan Panchal; [email protected]
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