SSE upbeat over profit growth despite customer exodus

By Erikka Askeland
Published on Wednesday 1 February 2012 00:00

SSE, one of Britain’s big six energy suppliers, expects continued profit growth despite losing 50,000 customers to competitors in the past nine months of 2011, it said yesterday.

Average energy consumption also dropped as customers turned down their heating in the mild winter. Electricity and gas usage fell to £710 per household from £760 in the corresponding nine months of 2010.

Nevertheless, the Perth-based firm said it expected an increase in pre-tax profit for 2011-12 in line with growth achieved in each of the past three years. Analysts expect the company’s profits for the year to rise about 2 per cent to £1.33 billion.

The energy company, formerly known as Scottish & Southern Energy, also said its full year dividend would increase at least 2 per cent more than inflation, to about 80p per share.

Chief executive Ian Marchant said: “This financial year has been characterised by continuing economic uncertainty and ongoing challenges in global energy markets.

“That uncertainty and these challenges are likely to continue in the new financial year. Nevertheless, SSE remains on course to deliver further growth in the dividend and in adjusted profit before tax and I am particularly pleased with the continuing good progress in large capital projects.”

Dominic Nash of Liberum Capital said the statement was “quite reassuring”. He continued: “SSE had obviously been hit by massive volume reductions due to the warm weather and their IMS [interim management statement] is better than feared and quite supportive.”

Last month, SSE announced it would cut the price of household gas by 4.5 per cent from the end of March and extended by two months its pledge not raise household electricity and gas prices to October 2012.

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nabodican

Wednesday, February 1, 2012 at 08:48 AM

The more they concentrate on reaping the wind subsidies, the more people will desert them.

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