Sse Share Discussion Threads

[tbr25] 09/11/2018 18:23

The debt split and credit agency issues are symptoms of doubts about the fundamental attractiveness of the new company to investors. The focus to date has been on the advantages and value to the “selling”; entities but it is now shifting to why should an investor want to own shares in ( or lenders lend to ) a low margin ( even after synergies) business in a badly regulated market without even the fall back of revenue from energy generation. The new company will be a bigger ( and highly scrutinised )example of the smaller new entrants none of which have performed well. Their business model doesn’t work! There is an unreconcilable disconnect between “Net co ( generators) and “serve co”. ( resellers ) where investment decisions are made in different time frames and pricing is determined by world energy markets. One of the better new entrants, First Utility,failed to attract investors into an IPO and was saved by its long standing credit underwriter, Shell, who acquired it to play in the retail sector.

[wad collector] 09/11/2018 17:45

The debt question is an interesting one. There is presumably some rule preventing lumping it all on to one side of the split .

[muffinhead] 09/11/2018 15:10

Personally don't think the spit will generate much value as generation will attract closer political scrutiny and generation will have to sell at margins to suit the retail market

Will be interesting is see which new company the board decides to dump SSE debt into. My bet is the retail side

Vertical integration is a better option
Similar to pubs and brewers!

[scrwal] 09/11/2018 14:31

The new arrangement may be worse but the new set up wasn't going to be a high value mega profit making entity , possibly the opposite , nor is it going to pay out big divs either so anything from it value wise or divs wise is a bonus especially on top of the 80p.

[careful] 09/11/2018 12:47

market not giving SSE the benefit of the doubt.
uncertainty.
is it obvious that the new arrangement will be worse?

[scrwal] 09/11/2018 12:37

Not surprised the mkt has got the jitters but would have thought that as both parties know about the cap there should have been an inbuilt mechanism into the pricing model for the shares that would take account of this and any variations that could arise.
Given that the household side goes into the new business there may be some unusual valuations on the business when split especially if the 80p div on the leaner SSE is maintainable eg a 6% yield infers a price of £11.33 - so who knows what valuation would apply to the new business.

[careful] 09/11/2018 11:34

May has not spoken on rip off tariffs for a while.
She did not know anything about the industry when she said that.

Greg Clarke is the minister with the job.
Since so many new low cost competitors have got into trouble the mood has changed.
They now realise that the present providers are quite efficient.
Thecap is reasonable.

Mays comments were to address Corby's nationalisation plans.

[bountyhunter] 09/11/2018 07:22

also, from SSE here...



"The company will provide an update on the progress of discussions by mid-December and it won't provide further comment on in the meantime, it said."

[skinny] 09/11/2018 07:08

Here's the link :-

[rethemagic] 09/11/2018 00:23

The BBC says SSE and NPower are renegotiating the tie up
which could take a further few weeks,and may not be finalised
in Q1 2019.

[coxsmn] 07/11/2018 19:53

Today's Telegraph"AN ENERGY price cap for 11 million homes could be revised upwards just weeks after it takes effect on Jan 1, the regulator has admitted.The cap is intended to remove around £1bn of overcharging, saving customers on default tariffs around £76 per year on average, and those on the most expensive tariffs as much as £120. But Ofgem confesses that the cap is likely to be revisited within weeks of it coming into force."

[eeza] 24/10/2018 20:28

Price rises work for some.

[bobby12340] 24/10/2018 17:35

31.2p I March 2019 for existing SSE

Then the rump of SSE 80p index linked for 5 years

The NRWCO retail company after the Blower merger will hopefully pay about 16p to bring the dividend of the 2 companies up to the existing SSE level.

[stevenrevell] 24/10/2018 16:54

What's the divi on this now ta

[jrphoenixw2] 11/10/2018 12:12

I had an RNS this morning:
'SSE plc, Scottish Hydro Electric Power Distribution plc, Scottish Hydro Electric Transmission Limited, Southern Electric Power Distribution plc - Publication of Prospectus Supplement
To view the full document, please paste the following URL into the address bar of your browser. '

[skinny] 10/10/2018 07:22

SSE comments on publication of CMA's Final Report into proposed GB energy retail merger

SSE plc (SSE) welcomes the Competition and Markets Authority (CMA)'s publication of its Final Report following the inquiry into the proposed merger of SSE Energy Services, SSE's household energy and services business in GB, and Innogy SE (innogy)'s GB retail business, npower Ltd.

Commenting on the publication, Alistair Phillips-Davies, Chief Executive of SSE plc, said:

"We are very pleased that the Final Report of the CMA's investigation confirms its provisional findings that the proposed merger of SSE Energy Services and npower does not raise any competition concerns.

"This is a complex transaction and there is still much work to do in the coming weeks and months. However, we've always believed that the creation of a new, independent energy and services retailer has potential to deliver real benefits for customers and the market as a whole and it is good to see that the CMA has cleared the transaction following what was a comprehensive and rigorous inquiry."

ENDS

[mr woodentop] 04/10/2018 14:30

i see the telegraph recommendation did the share price a world of good today! Doh!!!

[jrphoenixw2] 03/10/2018 14:49

I've just noticed that the Telegraph's Questor column yesterday tipped SSE as a buy. Excerpts:
(Sub-headline) 'Questor share tip: SSE's profits warning looks like a one-off and value should be unlocked by a change in structure.

The hot, calm summer hit SSE’s wind business and forced the firm to buy power in the open market to compensate for the renewables shortfall. That drove its Energy Management unit into loss. This may not be repeated and management’s commitment to an increased full-year dividend of 97.5p a share suggests they think as much.
Pending clearance from the competition authorities, possibly this month, SSE intends to merge its retail Energy Services operation with the Npower business owned by Innogy and then spin off the new entity next January. This will leave SSE’s shareholders with a two-thirds stake in the newly created venture.
nvestors will also own the tightly regulated “core” SSE Networks arm, which comprises power generation, transmission and distribution. This year’s woes at Energy Management aside, it should be a dependable generator of profits, cash and above all dividends, and worthy of the attention of income-seeking investors.'

[garycook] 03/10/2018 09:15

I make it around 8.47%.97.5/1151p atm.

[gswredland] 03/10/2018 07:26

8.7 % dividend according to advfn

[garycook] 03/10/2018 02:45

Been topping up here for value and yield from 1084p.Hit to hard and oversold.