SSE sees lower wholesale op profit in H1 FY 2014/15

Sep 30, 2014 - UK-based utility SSE Plc (LON:SSE) expects to book a lower wholesale operating profit in April-September as compared to a year earlier, partly due to decreased renewable energy generation.

The operating profit of the company’s wholesale division in the first half of fiscal 2013/14 amounted to GBP 160.4 million (USD 261m/EUR 205m). SSE explained its performance will also be affected by lower output from its thermal power plants and a drop in profits from gas production following a decline in day-ahead wholesale prices.

An operating loss is expected to be recorded in the energy supply business, “albeit at a reduced level,” SSE said. Meanwhile, the firm projected that its networks segment will boost its operating profit thanks to increased spending in transmission in recent years.

SSE, which operates both conventional and renewable power plants, noted it has invested about GBP 700 million in the six months to September to maintain, upgrade and construct power generation facilities.

The company will publish its results for the first half of fiscal 2014/15 on November 12.

(GBP 1.0 = USD 1.626/EUR 1.281)

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