SSE interim profits boosted by wholesale energy and weather

SSE has posted a jump in adjusted profit, driven by revenue from its wholesale energy portfolio management and electricity generation division.

The FTSE 100 energy company posted its half year results to 30 September on Wednesday, showing revenue of £13.8bn, an 11% jump from 2014's £12.4bn and well ahead of consensus estimates of £12.5bn.

Operating profit in the retail division also soared to £101.5m from £37.3m this time last year, due to lower than average temperatures leading to an increase in gas consumption, and lower operating costs. That helped drive the company’s adjusted profit before tax up 48.2% to £548.8m.

Adjusted earnings per share increased by 47.6% to 45.9p, also ahead of consensus, while the company’s interim dividend was lifted 1.1% to 26.9p per share.

However reported profit before tax fell by 27.1% to £230.8m after large negative falls in the company’s movements on derivatives.

SSE chairman Richard Gillingwater said there should always be a degree of caution about half-year results, however he believes the company has made a solid start to the year.

“Whilst market conditions can be challenging, SSE is a resilient business built for the long-term.

“With its balanced range of business, clear market focus, operational efficiency and strong financial management, this business is well-placed to continue to deliver annual dividend growth of at least RPI inflation.”

Shares in SSE, having risen late on the previous day, fell 1.2% by 0840 on Wednesday to 1,474p.