SSE 1Q Profit Hit by GBP80 Million After Warm Weather Reduces Gas Demand
July 19 2018 - 2:53AM
Dow Jones News
By Adam Clark
SSE PLC (SSE.LN) said Thursday that its adjusted operating
profit for the first quarter was 80 million pounds ($104.5 million)
lower than expected, hit by low renewable-energy production and
reduced gas demand.
"In addition to dry, still and warm weather, the financial year
so far has also been characterized by persistently high gas prices.
All of this has resulted in a higher cost of energy,
lower-than-expected output of electricity from renewable sources
and lower volumes of energy being consumed," SSE said.
The U.K. energy supplier said hydro output was 20% lower than
planned in the quarter to June 30, and wind output was 15% lower
than planned. Meanwhile, domestic gas demand was 10% lower than
expected.
SSE said the first-quarter underperformance may hit its
full-year results, depending on market conditions. However, the
company reiterated its intention to recommend a full-year dividend
of 97.5 pence a share for fiscal 2019, up 3% from the prior
year.
In May, SSE reported a 39% fall in pretax profit for fiscal 2018
to GBP1.09 billion, despite an 8% rise in revenue to GBP31.23
billion.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
July 19, 2018 02:38 ET (06:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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