SSE raises FY earnings per share on wholesale profits

22 2012 in Qui

Some 70% of its 6.76 million United Kingdom domestic customer accounts could be affected by a cap, it said.

Margins increased to 6.9 per cent, up from 6.2 per cent the year before and the highest since it started disclosing the figures in 2009-10.

SSE, which raised dual fuel prices by 6.9% on April 28, said United Kingdom and Ireland customer accounts fell from 8.21 million to 8 million in the year to March 31 as it faced competition from smaller rivals, but insisted it was beginning to halt the exodus. "It supports a stable United Kingdom carbon price, a continued commitment to cost-effective renewable energy, an evolving role for electricity distribution networks and the retention of competition at the heart of retail energy supply", said SSE.

SSE said Networks' operating profit will fall by around GBP100.0 million on a like-for-like basis in the year to end in 2018 versus the one that ended in March and GBP150.0 million on a reported basis.

Analysts have warned that suppliers will have to cut costs drastically if a price cap is imposed by an incoming government.

Shares in SSE and British Gas owner Centrica have been hit hard since the Tories first confirmed the price cap plans last month.

SSE Plc is preparing for "significant challenges" this financial year as the United Kingdom government prepares to cap energy tariffs, threatening profit margins at the nation's biggest utilities.

Fellow providers E.ON, Centrica and ScottishPower have also spoken out against the proposals, warning that it could lead to higher bills for consumers and reduce competition. The margin is more than five times the 1.25 per cent that the Competition and Markets Authority previous year concluded would be fair. Its total energy customer accounts in Britain and Ireland fell to 8 million compared to 8.21 million a year earlier.

SSE PLC shares gained ground on Wednesday after the company's annual results beat expectations, and although it has stuck to its dividend policy going forward, possible government intervention in the wider market could place the payout under threat.

'The main attraction of SSE remains the dividend, which has grown every year since 1992, and the shares now offer a yield of 6.5 per cent. Customer numbers have fallen 210,000 in the previous year.

'However, with customer numbers falling and Theresa May's price cap adding uncertainty to future revenues from the retail division, the group may find itself leaning on the transmission and distribution parts of its business a touch more than it would like in future'.

Related News:

  • WWE SmackDown reaches lowest ratings of 2017 against National Basketball Association  playoffs

    WWE SmackDown reaches lowest ratings of 2017 against National Basketball Association playoffs

    Be sure to subscribe to my podcast In This Corner with Brian Campbell where we break down everything you need to know each week . Jinder Mahal continued his winning ways on Smackdown Live Tuesday as he defeated AJ Styles and laid out WWE Champion Randy Orton.

    "Disgraceful:" Pro-immigrant group reacts to Sheriff Clarke's DHS announcement

    In explaining the appointment process, Walker's office did not offer congratulations or any reaction to Clarke's news. Notorious Milwaukee Sheriff David Clarke gets on an elevator after arriving at Trump Tower, Nov. 28, 2016, in NY .
    Sheriff Clarke Just Joined the Trump Administration

    Sheriff Clarke Just Joined the Trump Administration

    The 38-year-old man was one of four people, including the newborn of an inmate, who died last year at the jail overseen by Clarke. Walker spokesman Tom Evenson says once Clarke submits his resignation letter the process of appointing a successor can begin.
  • Gay rights supporters demonstrate in Russia's St. Petersburg

    Gay rights supporters demonstrate in Russia's St. Petersburg

    In April , another report came out that claimed that gay men in Chechnya were allegedly being killed or sent to makeshift prisons. The Russia LGBT Network told BuzzFeed that the USA had allegedly declined to issue visas to help these people find a safe harbor.
    Turkey demands US fire envoy in spat over Syrian Kurds

    Turkey demands US fire envoy in spat over Syrian Kurds

    Video shows people pushing past police to confront a small group of protesters across the street in Sheridan Circle. Differences over Syria policy have caused friction with North Atlantic Treaty Organisation ally Washington.
    McCain says Trump's problems are 'reaching Watergate size'

    McCain says Trump's problems are 'reaching Watergate size'

    Trump met with Comey in the Oval Office and told him: "I hope you can see your way clear to letting this go, to letting Flynn go". He has previously written about film for Bloody Disgusting , We Got This Covered , What Culture , and The Celebrity Cafe .
  • The Rock Could Seriously Be Your Next President

    The Rock Could Seriously Be Your Next President

    I'd like to see a greater leadership. "We all have issues, and we all gotta work our shit out", he said. I felt like it would either (a) make people unhappy with the thought of whatever my political view was.
    Former Liverpool player Dirk Kuyt retires after helping Feyenoord to Dutch title

    Former Liverpool player Dirk Kuyt retires after helping Feyenoord to Dutch title

    Kuyt, 36, netted a hat-trick on Sunday to secure a first national championship for the Rotterdam club in 18 years. Our captain Dirk @Kuyt has just announced his retirement from football.
    Iran reformist drops out of election, supports Rouhani

    Iran reformist drops out of election, supports Rouhani

    Concerns over "democracy, freedom, economy and the country's progress" will enable officials to overcome difficulties, he added. Hashemitaba has served in several capacities, first as industry minister in the early 1980s and later as a vice president.
  • France ILO Jobless Rate At 5-year Low

    France ILO Jobless Rate At 5-year Low

    But the pace of raises slowed since December's 2.9% increase-the strongest gain since June 2009. Trade, transportation, and utilities sector decreased by 1,300 from March 2017 to April 2017.
    Bobby Moynihan leaving 'Saturday Night Live' for CBS sitcom

    Bobby Moynihan leaving 'Saturday Night Live' for CBS sitcom

    Moynihan's exit should not come as a shock to those who followed the news coming out of broadcast Upfronts. Deadline reports that Moynihan had a typical seven-year contract with SNL and signed a two-year extension.
    To cease sales in India by 2017 end

    To cease sales in India by 2017 end

    Can I sell my vehicle back to my dealer? Senior officials from General Motors have arrived in India from Detroit and Singapore . General Motors (NYSE:GM) announces a series of global restructuring moves which it expects to lead to ~$100M in annual savings.


Most liked

N-Out vs. Five Guys: Who has the best burger?
In-N-Out was founded in California in 1948 and has more than 300 locations in California, Arizona, Texas, Nevada, Oregon and Utah. It has since spread across the country, including to Colorado, and around the world with 1,400 locations.

ISU's Wallace earns berth in NCAA golf
As a team the Lobos finished at 16 over par after starting the final round with a 6 under par total and three shot lead. UNLV claimed the team title at the Kampen Course at Purdue, shooting a eight-over 872 to beat Auburn by three strokes.

Si Woo Kim becomes youngest ever Players Champion
Holmes brought the wrong kind of a show - an 84, the highest final round of anyone who had at least a share of the 54-hole lead. Once Kim dropped his three birdies putts, he was unrelenting, especially when he made par saves on six of the back-nine holes.

Aishwarya at Cannes Film Festival with Aradhya
With her tresses left open, she looked exquisite as she exuded confidence and elan in her one-shoulder floor-sweeping dress. At the festival, the Outdoor Cinema will showcase films selected and introduced by six L'Oréal Paris actress ambassadors.