21st Jul 2016 06:53
LONDON (Alliance News) - SSE PLC Thursday reiterated its aim to return to growth in the current financial year and to deliver a small rise in adjusted earnings and a lift to the dividend as the utility firm reported further falls in customer numbers in the first quarter.
SSE is aiming to deliver adjusted earnings per share, which excludes certain items, of 120.0 pence in the current financial year that will end in March 2017 alongside a increase to the dividend payment that is in line with RPI inflation.
That means SSE is hoping to deliver a very small, 0.4% lift in adjusted earnings from the 199.5 pence reported last year. The dividend last year was up 1.1% to 89.4 pence, and a similar rise can be expected in the current year.
In the first quarter, the company reported a further fall in electricity and gas customers as accounts fell 0.6% to 8.16 million at the end of June from 8.21 million at the end of March. SSE has lost well over 1.0 million customers since 2013 and lost 370,000 customers last year alone.
Average electricity consumption in the first quarter was slightly down year-on-year to 821 kilowatt hours from 822 kilowatt hours whilst gas consumption was slightly higher at 78 therms compared to 75 therms a year ago.
The wholesale division reported a rise in gas production to 2.6 million barrels of oil equivalent compared to 1.9 million barrels last year, mainly boosted by the Greater Laggan coming online in February.
Electricity output from oil and gas fired power stations was significantly higher in the quarter at 4.4 terrawatt hours from 2.42 terrawatt hours even as coal plants continue to shutdown or lower power generation.
The wholesale unit, however, did report a large drop in power generation from renewable sources in the first quarter due to "differences in the weather", falling to 1.51 terrawatt hours from 2.2 terrawatt hours a year ago.
SSE said it still expects to spent USD1.75 billion in capital and investment expenditure this year, part of the USD5.50 to USD6.00 billion to be spent across four years until March 2020.
SSE said it is still planning to sell its 50% stake in SGN Ltd, a UK gas distribution business, and said the sale process is underway and confirmed that proceeds would be returned to shareholders or held on to for investment purposes.
"The financial objective of SSE's strategy is a commitment to give shareholders a return on their investment through the payment of a full-year dividend that increases at least in line with RPI inflation," said SSE.
By Joshua Warner; [email protected]; @JoshAlliance
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