SSE Lowers FY19 Adjusted EPS Forecast, Mulls Energy Services Unit Options
February 08 2019 - 2:55AM
Dow Jones News
By Oliver Griffin
SSE PLC (SSE.LN) sees adjusted earnings per share in fiscal 2019
lower than previously expected and is considering options for its
SSE Energy Services business after plans for a merger with Npower
Ltd. were scrapped.
The U.K. energy company said it now expects adjusted EPS for
fiscal 2019 in a range of 64 pence-69 pence ($0.83-$0.89), down
from earlier estimates of 70 pence-75 pence.
The fall in earnings outlook is because SSE is unlikely to
receive or be able to recognize income from the U.K.'s Capacity
Market scheme after a judgment by the Court of Justice of the
European Union withdrew its approval for the mechanism.
SSE said it is considering a number of options for its SSE
Energy Services businesses after plans to merge the unit with
Npower, the U.K. retail business of Innogy SE's (IGY.XE), were
scrapped in December.
SSE said it believes the unit will best succeed outside of the
group. To that end, SSE said it is considering a standalone
demerger and listing of the business, a sale of the unit, or an
alternative transaction.
If none of the options is viable, SSE said it might retain its
energy services business as a separate, ring-fenced business within
the group that would be expected to be cashflow positive.
For the full year, SSE said it still expects that its capital
and investment expenditure to total around GBP1.7 billion. The
company backed its intention to declare a full-year dividend of
97.5 pence a share.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
February 08, 2019 02:40 ET (07:40 GMT)
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