SSE share price in focus as full-year earnings inch higher

on May 20, 2015
Updated: Oct 21, 2019

SSE Plc (LON:SSE) has this morning posted higher full-year earnings, with its energy supply and network businesses delivering stronger profits. The FTSE 100 utility, however, continued to experience market difficult conditions at its power plant business, resulting in the company’s decision to close down its Ferrybridge coal-fired power station by the end of March next year.

SSE’s share price has slipped into the red this morning, having shed 1.06 percent to 1,678.00p as of 09:35 BST, and underperforming the blue-chip FTSE 100 index which currently stands 0.446 percent lower at 6,964.07 points.
The Scotland-based utility announced today in a statement that its adjusted profit before tax had climbed 0.9 percent to £1.56 billion in the year ended March 31, 2015, while adjusted earnings per share came in 0.6 percent higher at 124.1 pence. Operating profit at the company’s networks and retail units rose, helping offset a decline at SSE’s wholesale business. The company lifted its full-year dividend by two percent to 88.4 pence per share.
Commenting on the results, SSE’s chief executive Alistair Phillips-Davies said that the company had delivered target of annual dividend growth and had “achieved solid performance on adjusted earnings per share and profit before tax”.
Separately, the company today published the outcome of its review of coal-fired generation assets, announcing that it had decided to close all of the remaining capacity at its Ferrybridge power station in Yorkshire by March 31, 2016. Paul Smith, Managing Director, Generation, at SSE, explained in a statement that the station is currently loss-making and is anticipated to lose another £100 million over the next five years.
“We know that the decision to end coal-fired generation at Ferrybridge will have an impact on the local community and it has not been taken lightly,” Smith added. The blue-chip company currently employs 172 people at the operation, with some of them expected to be redeployed elsewhere in the group. SSE noted that it would also offer employees voluntary release on enhanced terms, and seek to avoid compulsory redundancies.
As of 10:34 BST, Wednesday, 20 May, SSE PLC share price is 1,683.00p.

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