SSE share price: Full-year profit rises 9.6 percent

on May 21, 2014
Updated: Apr 9, 2020
Listen, Wednesday, May 21: SSE Plc (LON:SSE) saw its full-year profits rise 9.6 percent, boosted by a strong performance in the company’s electricity transmission operations. The utility however posted a drop in full-year retail operating profit following a mild winter.

SSE’s share price has climbed about 0.3 percent in London this morning.
**SSE full-year results**
SSE said today in a statement that its adjusted profit before tax had climbed by 9.6 percent to £1.55 billion in the year ended March 31, 2014. The group however posted operating profit of £292 million in its retail business, down 28.6 percent year-on-year, reflecting a mild winter.

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Operating profit at the company’s network segment rose 9.3 percent to £955.4 million, while wholesale operating profit came in 24.8 percent higher at £634.6 million. SSE’s adjusted earnings per share rose 4.1 percent to 123.4p, and the company increased its full-year dividend per share three percent to 86.7p.
Today’s results came after in March, the UK’s second-largest energy supplier announced that it was freezing prices until 2016. In today’s statement, SSE warned that as a result of the price freeze, its profit margins from supplying customers with electricity and gas were unlikely to recover to the level seen in 2012/13 before 2016/17 at the earliest.

**Competition enquiry**
SSE also commented on the Competition Markets Authority investigation into energy supply announced in March, calling for “any investigation to have a broad enough scope if it is to reach a new, lasting settlement on the energy market for the benefit of customers and investors”.
In March, Ofgem referred the UK’s ‘Big Six’ energy suppliers, including SSE, for a full anti-trust investigation, noting that profit increases and recent price rises had “intensified public distrust of suppliers”. (SSE share price drops as Ofgem proposes competition enquiry)


Perth-based SSE, which was among the first FTSE 100 companies to address the issue of Scottish independence, said in today’s statement that Great Britain’s electricity market could change in the case of a ‘yes’ vote, and that the future remuneration of renewable energy, currently supported by electricity customers throughout the country, would have to be agreed.

“In this circumstance, SSE would aim to work constructively with the Scottish and UK governments,” the company added.
**Analysts on SSE**
The 16 analysts offering 12-month price targets for SSE for the Financial Times have a median target of 1,373.72p, with a high estimate of 1,735p and a low estimate of 1,176.72p. As of May 16, the consensus forecast amongst 36 polled investment analysts covering SSE advises investors to hold their position in the company.
**As of 08:01 BST, buy SSE shares at 1574.00p.**
**As of 08:01 BST, sell SSE shares at 1571.00p.**


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