SSE full-year profit drops, may sell stake in gas distribution networks

Adjusted pre-tax profit fell 3.3% to £1.5bn, which was pretty much in line with analysts’ expectations, while reported pre-tax profit was down 19.3% to £583.3m.

During the period, the company recorded net exceptional charges of £889.8m before tax, which was predominately related to impairment of certain wholesale assets.

Against this, it also recorded a gain on the disposal of an interest in its Clyde wind farm of £138.6m which was recorded directly in equity.

Adjusted earnings per share, excluding exceptional items, came in at 119.5p, down 3.7% from the year before but ahead of the company’s target of at least 115p.

Operating profit at SSE’s wholesale gas division slumped to £2.2m from £36.6m the year before as gas prices declined.

SSE lifted the dividend for the yearn by 1.1% to 89.4p per share, in line with its main financial objective of an annual increase that is at least equal to RPI inflation.

Chief executive Alistair Phillips-Davies said: "It has been another year in which SSE has delivered what it said it would. Nevertheless, the operating environment presented a number of complex issues, including the impact of prevailing commodity prices and intense retail market competition.

“At the same time, SSE has continued to demonstrate financial discipline and commitment to its long-term strategic framework. The fact that some of the mist is beginning to clear around the legislative, political and regulatory environment means there are grounds for some cautious optimism for the next couple of years.”

At 0815 BST, SSE shares were down 0.1% to 1,545p.