SSE sees renewables profit offset poor retail performance

• 11 years ago (2012-05-16)
• Junior Isles

Europe 1061

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Major UK energy company SSE has seen profits rise 2 per cent thanks to renewable generation profits offsetting falls in the retail division.

SSE recorded profits of £1.33bn despite a year of upheaval in global energy markets and general economic uncertainty.

"There are three issues over which SSE has no control but which in one way or another touched every part of its business... upheaval in global energy markets, widespread economic uncertainty and the weather,” said SSE Chairman, Lord Smith of Kelvin.

The Perth based company, previously known as Scottish and Southern Energy, raised its dividend by 6.8 per cent.

"Higher wholesale gas prices, falling demand for energy and a succession of winter storms presented major challenges for the wholesale, retail and networks parts of SSE," Lord Smith said.

The company noted in a statement that "the economic outlook for the UK and Ireland in 2012/13 continues to be uncertain", indicating it is unlikely to contradict British Gas-owner Centrica’s previous statement that the trend for energy prices "remains upwards".

SSE raised gas prices by 18 per cent and electricity prices by 11 per cent in September last year, but cut gas prices by 4.5 per cent during March.