SSE 1Q Profit Hit by GBP80 Million After Warm Weather Reduces Gas Demand

By Adam Clark

SSE PLC (SSE.LN) said Thursday that its adjusted operating profit for the first quarter was 80 million pounds ($104.5 million) lower than expected, hit by low renewable-energy production and reduced gas demand.

"In addition to dry, still and warm weather, the financial year so far has also been characterized by persistently high gas prices. All of this has resulted in a higher cost of energy, lower-than-expected output of electricity from renewable sources and lower volumes of energy being consumed," SSE said.

The U.K. energy supplier said hydro output was 20% lower than planned in the quarter to June 30, and wind output was 15% lower than planned. Meanwhile, domestic gas demand was 10% lower than expected.

SSE said the first-quarter underperformance may hit its full-year results, depending on market conditions. However, the company reiterated its intention to recommend a full-year dividend of 97.5 pence a share for fiscal 2019, up 3% from the prior year.

In May, SSE reported a 39% fall in pretax profit for fiscal 2018 to GBP1.09 billion, despite an 8% rise in revenue to GBP31.23 billion.

Write to Adam Clark at [e-mail]; @AdamDowJones

(END) Dow Jones Newswires

July 19, 2018 02:38 ET (06:38 GMT)

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