SSE share price: Utility updates on recent trading

SSE Plc (LON:SSE) has this morning published a quarterly trading update.

**Highlights from the company statement:**
Alistair Phillips-Davies, Chief Executive of SSE, said:

“SSE continues to fulfil its core purpose of providing the energy people need in a reliable and sustainable way. I am pleased that we have been able to announce a reduction in retail gas prices – our third consecutive reduction in household energy prices – and to achieve a significant reduction in the number and duration of power cuts experienced by our networks customers.

“Market conditions, however, continue to be challenging. Nevertheless, SSE remains a resilient and diverse business, with a strong commitment to operational efficiency and delivering value for customers and investors. It remains firmly focussed on delivering this year’s financial objectives and making sure that the business is fully prepared for the future.”
Financial outlook
SSE uses adjusted earnings per share* to monitor financial performance over the medium term because it defines the amount of profit after tax that has been earned for each Ordinary share.
Although the nature of energy provision means that its financial results in any single year are always subject to well-documented uncertainties, SSE is continuing to target adjusted earnings per share* for 2015/16 of at least 115 pence and will, as usual, update its financial outlook for 2015/16 in its Notification of Close Period.

As stated in its interim results statement in November 2015, in view of the wider energy sector conditions, SSE continues to recognise that adjusted earnings per share* is subject to significant uncertainties. This means that its dividend cover, based on dividend increases that at least keep pace with RPI inflation, could range from around 1.2 times to around 1.4 times over the three years to 2017/18. Nevertheless, SSE believes that a long-term target for dividend cover of closer to 1.5 times, based on a dividend that at least keeps pace with RPI inflation, is the right one to aim for and the development of the business is geared towards that goal.

SSE will publish its preliminary results for the financial year ending 31 March 2016 on 18 May 2016, and in advance of that will publish a Notification of Close Period on 24 March 2016.
As of 07:05 GMT, Thursday, 28 January, SSE PLC share price is 1,432.00p.