SSEZY SSE PLC (PK)

By Razak Musah Baba

LONDON--Energy provider SSE PLC (SSE.LN) on Thursday upheld its commitment to an annual dividend growth as it reaffirmed the company's fiscal 2017 projections and said it has made a good start to the financial year.

"SSE has made a solid start to the financial year with continued focus on operational efficiency, putting our customers at the heart of everything we do and progressing long-term investments in the U.K.'s and Ireland's energy infrastructure, including significant progress with the Beatrice Offshore Wind Farm and the new Caithness-Moray electricity transmission link," Chief Executive Alistair Phillips-Davies said.

The electricity and gas distributor confirmed that it is targeting a return to growth and adjusted earnings per share of at least 120 pence in fiscal 2017 and it is also continuing to target an increase in the full-year dividend for fiscal 2017 of at least RPI [retail price index] inflation, with annual increases thereafter of at least RPI inflation also being targeted.

SSE also said Thursday it signed a sale and purchase agreement with DIF Infrastructure IV for its equity interest in its three remaining U.K. PFI street lighting SPEs. This disposal, when completed, will conclude SSE's two-year value program, and is expected to take the total disposal proceeds and debt reduction to over 1.1 billion pounds ($1.5 billion) to support future operations and capital expenditure as part of SSE's long-standing strategic commitment to efficiency and disciplined investment.

SSE said that should a sale be completed it would expect to use the proceeds to return value to its shareholders or to invest to create value for shareholders.

Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

July 21, 2016 02:47 ET (06:47 GMT)

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