Notification of Close Period

RNS Number : 2411N

SSE PLC

28 September 2012

 



NOTIFICATION OF CLOSE PERIOD

SSE plc will enter its close period on 1 October 2012, prior to the publication on Wednesday 14 November 2012 of its financial report for the six months to 30 September 2012.

Since the publication of its Interim Management Statement (IMS) on 26 July 2012, SSE has: announced that it will increase household electricity and gas prices in Great Britain by an average of 9% on 15 October; secured a reduction in cash dividend funding of £172.7m as a result of shareholders electing for the Scrip dividend alternative; and successfully launched an issue of hybrid capital securities comprising US $700m and €750m, which are perpetual and subordinate to all senior creditors, with an all-in euro funding cost to SSE of around 5.6% per annum.

SSE has also: completed the restoration of electricity generation at the Glendoe hydro electric scheme; announced that all of the 140 turbines at the Greater Gabbard offshore wind farm, in which it has a 50% stake, have been commissioned and generated electricity; secured, through its Telecoms business, a 10-year, £30m contract to provide fibre network connected to the 'Janet' networks; and officially opened the Clyde onshore wind farm.

Eight of the nine caverns at the gas storage facility developed at Aldbrough by SSE and Statoil (UK) Ltd are now operational and the final cavern should become operational next month.  The acquisition of the electricity generation assets in Ireland of Endesa Generacion SA is expected to be completed in October.

In addition, Standard & Poor's Rating Services have affirmed SSE's long term rating of A- while changing its rating outlook from stable to negative.  Moody's corporate credit rating of SSE remains A3 with a stable outlook.

As again stated in its IMS in July, SSE focuses on full year financial results, as opposed to six months, because half-year performance at plc level and within reportable segments, especially in Retail and Wholesale, is more likely to fluctuate, with unusual variations or circumstances. 

Against this background, SSE's adjusted profit before tax for the six months to 30 September 2012 is expected to be significantly higher than in the same six months in 2011 and to return to a level closer to that attained in 2010. 

In line with that, SSE expects to report that all three of its segments - Networks, Retail and Wholesale - have been profitable during the six months to 30 September 2012.  In the same period in 2011, its Retail segment recorded an operating loss of almost £100m, including an operating loss of over £125m in Energy Supply.

All of this means that adjusted profit before tax achieved in the first six months of this financial year is likely to account for a substantially greater proportion of that achieved by SSE in 2012/13 as a whole than was the case for 2011/12.  This again illustrates the fluctuating nature of financial results for six month periods and should have no implications for the full financial year.

SSE remains on course to achieve its principal financial objective for 2012/13 - an increase of at least 2% more than RPI inflation in the dividend payable to shareholders.  Thereafter, as set out in its Financial Report on 16 May 2012, its target remains to deliver annual dividend increases which are greater than RPI inflation while maintaining dividend cover over the medium term within a range around 1.5 times.

As also stated in its Financial Report, SSE's expectation at the start of each financial year is that it will not provide an outlook for adjusted profit before tax before the publication of its fourth quarter Interim Management Statement and that remains the case for 2012/13.

Gregor Alexander, Finance Director of SSE, said:

"Energy market conditions remain challenging, and this has an impact on providers and customers, but SSE is focused on maintaining financial discipline while working to meet the needs of customers in what are difficult economic times."

 

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