26th Jul 2007 11:01
Scottish & Southern Energy PLC26 July 2007 THURSDAY 26 JULY SCOTTISH AND SOUTHERN ENERGY PLC ANNUAL GENERAL MEETING 2007 AND INTERIM MANAGEMENT STATEMENT Scottish and Southern Energy plc ("SSE") will today inform shareholders at itsAnnual General Meeting in Perth that there has been a good start to the currentfinancial year, which began on 1 April 2007, with continuing growth in energycustomer numbers, a further reduction in customer complaints and progress inmajor investments. Operational update In the three months to 30 June 2007: • the number of electricity, gas and telecoms customers increased by200,000, to 8.05 million; • the number of customer complaints sent to energywatch for resolutionwas 196, a fall of 12% compared with the same quarter in 2006; • gas-fired power stations achieved 95% of their maximum availabilityto generate electricity, excluding planned outages; coal-fired stations achieved88%; • the output from hydro electric schemes (excluding Foyers) and windfarms was 649GWh, a reduction of 8% compared with the same quarter in 2006; • the number of units of electricity distributed was 9,642GWh,areduction of 2.5% compared with the same quarter in 2006; • the number of Customer Minutes Lost in Scottish Hydro Electric PowerDistribution was 15.5, a reduction of 13% compared with the same quarter in2006; in Southern Electric Power Distribution it was 15.7, an increase of 10%; • the amount of gas transported by Scotia Gas Networks, in which SSEhas a 50% stake, was 29,000GWh, a reduction of 15% compared with the samequarter 2006; and • the major projects in gas storage at Aldbrough and electricitygeneration at Drumderg, Fiddler's Ferry, Ferrybridge, Glendoe and Marchwood areon course to be commissioned on schedule, starting with the first gas storagecapacity at Aldbrough during 2007/08 through to the gas-fired power station atMarchwood in 2009/10. Key developments Since the publication of its preliminary results on 31 May 2007, SSE has:submitted an application to Scottish Ministers for consent to build a 205MW windfarm at Pairc in the Western Isles, the largest such development for which ithas ever sought consent; secured 'support' (subject to conditions) from TheHighland Council for its proposal for an 87MW wind farm at Gordonbush, whichwill now be determined by Scottish Ministers; decided to invest £10m in a newfund (the Sigma Sustainable Energy Fund II) to target sustainable, renewable andenergy efficient technologies; finalised the first of four agreements to supportthe development of four new wind farms in China through the purchase of aroundtwo million Carbon Emissions Reduction Certificates; and signed a contract withthe Department for Business, Enterprise and Regulatory Reform to participate inenergy savings trials. Financial principles SSE has continued to adhere to the six key financial principles set out on page10 of its Annual Report 2007. In particular, it remains on course to deliversustained real dividend growth in the years ahead and, specifically, to deliverat least 4% annual real growth in respect of 2007/08, 2008/09 and 2009/10. Itsbalance sheet remains one of the strongest in the global utility sector. Since 7 June 2007, SSE has purchased for cancellation 6,038,000 of its ordinaryshares, representing 0.7% of the called-up share capital. The aggregateconsideration before charges was £88.0m and the weighted average price was1,457.6 pence per share. Directors are seeking at today's AGM renewal of theirauthority to purchase in the market the company's ordinary shares shouldconditions be appropriate. Board As announced on 7 March 2007, David Payne, currently Senior IndependentDirector, will retire at the conclusion of today's AGM. He will be succeeded asSenior Independent Director by Susan Rice CBE, Chief Executive of Lloyds TSBScotland, who joined the Board in 2003. The Board now consists of fourExecutive Directors, and five independent non-Executive Directors, in additionto the Chairman. Interim Results SSE will publish its interim results for the six months to 30 September 2007 onWednesday 14 November 2007. Outlook Sir Robert Smith, Chairman, will tell shareholders at the AGM: "SSE has made a good start to the new financial year, with continuing growth incustomer numbers, a further reduction in customer complaints and significantprogress in our major investment programme. This will deliver asignificantly-expanded asset base, which will position SSE very well to deliverfurther shareholder value in the years ahead. We are on course to achieve thedividend targets which we have set for the three years to March 2010, and makefurther progress towards our long-term objective of doubling it from the 55pence per share which we are recommending to shareholders today. Next year will see the completion of SSE's first decade as one of the UK'sleading energy companies and the company is full of ideas, plans andopportunities for our second decade. Our priority must continue to be thedelivery of significant value for shareholders and excellence for customers fromcontinuous improvement across all of our activities and by exploitingopportunities for investment." This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SSE