Market ‘turmoil’ sets SSE profits down by a quarter

Scottish and Southern Energy’s (SSE) profits are down by a quarter, according to their financial results out today. The energy supplier put the decline in profits compared with 2010 down […]

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By Vicky Ellis

Scottish and Southern Energy’s (SSE) profits are down by a quarter, according to their financial results out today. The energy supplier put the decline in profits compared with 2010 down to “turmoil in the global energy markets [and] economic uncertainty across much of the world”.

The Big Six firm made £235.4m in 2011, 23.2% lower than last year’s profit after tax. The chairman of SSE, Lord Smith of Kelvin lamented global instability by stating that “this is not a straightforward time in which to do business.”

He said: “SSE’s half-year results reflect the impact of a number of these issues, especially the high wholesale cost of gas which eventually necessitated the increase in household prices that unfortunately had to be made in September. We want to avoid the impact on customers that another increase in household prices would have, and that’s why we’ve said they won’t go up again, if they have to, before August next year at the earliest.”

Lord Smith added that SSE are expecting a moderate increase in adjusted profit before tax in their full-year results next May.