wind and rain blows in a profit
Wet weather boost for energy firm SSE
Wet and windy weather helped give energy firm SSE a 48% boost to its adjusted pre-tax profit rise 48% to just under £549m in the six months to the end of September .
Average rainfall in the north and west of Scotland, where SSE’s hydro electric schemes are situated, was exceptionally high over the first five months of the financial year, it said.
This was 20% above the long-term average, and contributed to a high level of output of electricity from the schemes.
Wind speeds across Scotland and Ireland, the location of most of SSE’s wind farms, were generally typical in the first half of the financial year.
Richard Gillingwater, chairman, said: “In the first half of this financial year SSE expected to deal with a number of challenging issues, such as the outcome of the UK Government’s legislative programme and investigations by the Competition and Markets Authority.
“SSE has always acknowledged that there is uncertainty associated with these developments. The road ahead is becoming clearer, however, and there are grounds for cautious optimism that a stable long-term framework can be achieved. SSE maintains a constructive approach to managing these issues, with a focus on meeting the expectations of its customers and safeguarding the interests of investors.
“There should always be a degree of caution about half-year results, yet SSE has made a solid start to the 2015/16 financial year. Whilst market conditions can be challenging, SSE is a resilient business built for the long-term.
“With its balanced range of business, clear market focus, operational efficiency and strong financial management, this business is well-placed to continue to deliver annual dividend growth of at least RPI inflation. As I begin my tenure as Chairman I am confident that the foundations are well-laid and that SSE can continue to deliver for all of its customers and be a strong and sustainable long term investment for shareholders.”