SSE announces 13.3% fall in profits

SSE’s adjusted profits before tax fell 13.3% for the six months to the end of September this year. That’s a total of £475.8 million during the same period. According to […]

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By Jacqueline Echevarria

SSE’s adjusted profits before tax fell 13.3% for the six months to the end of September this year.

That’s a total of £475.8 million during the same period.

According to the Big Six supplier, the reduction reflects lower profits in its wholesale and retail businesses due to weather, lower customer numbers in very competitive markets and essential energy infrastructure upgrades such as smart meter rollout costs.

However, it also said it expects a return to growth this financial year.

The company plans to invest £1.85 billion in the UK and Ireland in 2016/17 as it continues to develop secure, sustainable and low carbon energy infrastructure for the future.

According to CEO Alistair Phillips-Davies, that’s the largest ever investment in the UK this year.

SSE also plans to use the proceeds from the sale of part of its stake in gas distribution company SGN to return value to shareholders.

Mr Phillips-Davies added: “From building the clean, lower carbon generation we need for the future, the new and upgraded wires to transport energy around the country and new, improved service for energy supply customers, SSE is investing in customers, in jobs, in the business supply chain and in Great Britain and Ireland’s economies at a critical time.

“There is greater competition in energy supply than ever but SSE continues to deliver for customers, with the lowest number of complaints in the industry, leading service and a growing range of products and services.”

Last month, ScottishPower announced its earnings before interest and tax fell to £924.9 million in the first three quarters of this year.