SSE plc full-year profit climbs on disposals gain

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on May 26, 2021
Updated: Jun 1, 2022
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  • SSE plc says its pre-tax profit jumped to £2.52 billion in fiscal 2021.
  • The UK energy company refrained from giving future guidance.
  • SSE plc proposed 56.6 pence per share of a final dividend.

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SSE plc (LON: SSE) reported an increase in its full-year profit on Wednesday. The company acknowledged a hit from the COVID-19 crisis but said that it was more than offset by exceptional gains on disposals.  

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SSE plc opened about 1% down in the stock market on Wednesday but recovered the entire intraday loss in the next hour. Including the price action, it is now exchanging hands at £15.50 per share versus a year-to-date low of £13.00 per share in the first week of March.

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SSE plc said its pre-tax profit in the year that concluded on 31st March came in at £2.52 billion versus the year-ago figure of £587.6 million. Its non-core assets disposal programme generated exceptional net gains of £877.6 million in fiscal 2021 and cash proceeds of £1.4 billion to date.  

At £1.51 billion, the multinational energy company noted a 1% increase in its adjusted operating profit that almost matched the market consensus. SSE plc valued the COVID-19-related hit in the recently concluded year at £170 million.

Other notable figures in the financial update on Wednesday include a 25% decline in the adjusted operating profit from local distribution networks and a loss of £24 million from SSE’s business energy unit. Disposal gains, the Perth-headquartered company added, also resulted in a 29% increase in its renewables division adjusted operating profit, despite an 11% decline in green power generation due to adverse weather conditions.

Lastly, SSE’s thermal division showed resilience in fiscal 2021, while earnings from the transmission infrastructure segment remained unchanged from last year. In separate news from the United Kingdom, British Land said on Wednesday its pre-tax loss narrowed in fiscal 2021.

SSE plc proposed 56.6 pence per share of a final dividend

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The FTSE 100 company proposed 56.6 pence per share of a final dividend that pushed the full-year payment up, to 81.0 pence per share from last year’s 80.0 pence per share. By the end of June, SSE plc added, it will offload its contracting and rail assets. Gas production assets will be divested before the start of calendar 2022.

The London-listed company refrained from giving its guidance for fiscal 2022 on Wednesday but expressed confidence that the ongoing health emergency will only reflect negatively on its enterprise and business energy division.

At the time of writing, SSE plc is valued at £16 billion and has a price to earnings ratio of 17.21.

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