Divend hike for energy company SSE
UK ENERGY giant SSE cheered investors yesterday by forecasting an above inflation dividend hike this year despite an expected profit fall in the first half.
The Perth-based group said it would maintain its “operational and financial discipline” despite its shares feeling the heat last week from Ed Miliband’s pledge to freeze energy bills if Labour are elected.
It expects its retail business to be loss-making during the six months to September 30, reflecting higher wholesale gas costs as well as the impact of fixed distribution costs, which were rising during the spring and summer period of lower energy consumption. This compares with an operating profit of £75.7million over the same period in 2012.
SSE’s wholesale and networks divisions are expected to have been profitable in the first half. The firm said: “SSE remains on course to achieve its principal financial bjective for 2013/14.”
Finance director Gregor Alexander said SSE had made “solid progress in recent months”.
He added: “Despite the intensifying political debate we will maintain our operational and financial discipline to enable us to deliver an above-inflation increase in the dividend.”
Shares rose 6p to 1474p.