Notification of Pre-Close Period

RNS Number : 3486A

SSE PLC

30 March 2012

 



SSE PLC

NOTIFICATION OF PRE-CLOSE PERIOD

SSE plc will enter its close period on 1 April 2012, prior to the publication on Wednesday 16 May 2012 of its financial report for the year to 31 March 2012.

It continues to expect to deliver a full-year dividend increase of at least 2% more than RPI inflation, and of around 80 pence per share, and to deliver an increase in adjusted profit before tax for 2011/12 of a level similar to that achieved in each of the last three years. 

In line with the Interim Management Statement in January 2012, SSE's financial statements for 2011/12 are likely to include a non-cash exceptional impairment in the book value of Keadby and Medway power stations. 

SSE is also announcing separately today that, following a review of the reportable segments contained within its financial statements, it will present its financial statements for 2011/12 under three core segments: Networks; Retail; and Wholesale. 

Capital and investment expenditure

SSE's capital and investment expenditure for 2011/12 is forecast to be around £1.7bn.  It is designed to support future dividend growth and SSE continues to prioritise the successful completion of key large capital projects:

·     Clyde onshore wind farms (350MW development): Turbines with a total capacity of 225MW have now been energised and are able to export electricity and the development as a whole should be completed in the next few months.

·     Griffin onshore wind farm (156MW development):  The wind farm has been completed.

·     Gordonbush onshore wind farm (70MW development): All turbines have now been energised and are able to export electricity, and the wind farm as a whole should be completed shortly.

·     Greater Gabbard offshore wind farm (500MW development; SSE stake in Greater Gabbard Offshore Winds Limited - 50%):  All 140 monopile foundations and turbines have been installed, of which 125 have exported electricity. Work is continuing on the installation of the third and final electricity export cable. All of this means that commissioning works should be completed, as planned, before the end of this year.  GGOWL continues to be in contractual dispute with Fluor Limited, the principal contractor for the wind farm, regarding the quality of the lower foundations (monopiles) and upper foundations (transition pieces) used in the early stages of the development and supporting 52 of the 140 turbines.  In relation to this, GGOWL has initiated the formal contractual claim against Fluor Limited referred to in SSE's six-month financial statement in November 2011, because the relevant structures have been deemed by GGOWL to be defective and so do not meet the standards required by the contract between the two companies.  Both elements of the ongoing dispute are the subject of a formal arbitration process.

·     Walney offshore wind farm (367MW; SSE stake 25.1%): The first phase of Walney is operational and construction of the second and final phase of the wind farm, which also comprises 51 turbines with a total installed capacity of 183.6MW, is now well under way. All of the turbines have been installed, of which 38 have exported electricity, and the whole wind farm should be completed in the next few months.

·     Beauly-Denny replacement electricity transmission line (SSE section Beauly to Wharry Burn):Scottish Hydro Electric Transmission Ltd has begun construction of its section of the replacement line, between Beauly and Wharry Burn, with the first of the new pylons being completed in recent weeks.  The replacement line should be completed in 2014.

·     Northern electricity transmission upgrades (Knocknagael Substation, Beauly-Blackhillock-Kintore and Beauly-Dounreay): These three projects have a total value of almost £200m. The first project, the upgraded Knocknagael Substation, has been completed. Work on the remaining two projects is continuing and they are on course for completion by 2015.

·     Aldbrough gas storage capacity (around 330mcm; SSE stake 66.6%): Six of the nine caverns are already storing gas. Leaching at the remaining three caverns has been completed and the process of de-watering, through injection of gas, is continuing at two of these caverns, having been completed at the third. All of the remaining three caverns should be ready for operation this summer.

Glendoe hydro electric scheme
Work on the restoration of electricity generation at the Glendoe hydro electric scheme is continuing to progress well. The process of re-filling the reservoir should begin in the next couple of months, allowing electricity generation to resume this summer.

Household energy consumption and bills in Great Britain
Actual consumption of electricity by SSE's household customers in Great Britain is estimated to have fallen by 7% in 2011/12 and actual consumption of gas by SSE's household customers is estimated to have fallen 19%, compared with 2010/11.  For both fuels, the weather-adjusted reduction in consumption is estimated to be 4%.

Based on the estimates of actual levels of electricity and gas consumption set out above, a typical household customer of SSE will have paid £1,118 for electricity and gas in the year to 31March 2012 (excluding VAT), compared with £1,137 in the previous year.

SSE implemented a cut of 4.5% in its unit price for household gas on 26 March 2012 and will not implement any increase in household electricity and gas prices, if it has to, before October 2012 at the earliest.

Ian Marchant, Chief Executive of SSE, said: 
"The economic uncertainty and the challenges of global energy markets that have characterised recent years look set to continue for some time.  I am pleased that even in such circumstances SSE has again demonstrated its ability to make progress and we are looking to get the new financial year off to the best possible start, in support of our ongoing commitment to sustained real dividend growth." 

 

END

 

 

MSCEAEDNAEAAEFF