SSE increases FY profit and dividends

21st May 2014 07:00

SSE said retail profits fell by nearly a third, but the power and gas supplier still increased underlying annual group profits and hiked its dividend.SSE blamed lower energy use by households and businesses and higher wholesale gas costs for a 32.2% fall in energy supply operating profit to £246.2m.But the group said rises in electricity network and wholesale energy profits had helped it lift annual underlying group profits by 9.6% to £1.6bn.Despite criticism of British utilities for putting up household gas and power bills at the same time as making higher profits and dividends, SSE increased its annual dividend by 3% to 86.7p per share.SSE, which generates power from traditional power stations, wind and hydroelectric plants, said energy portfolio management and electricity generation operating profit rose 10.1% to £496.1m, largely reflecting increased renewable energy output.Profits from its power transmission and gas supply networks rose 9.3% to £955.4m.Chairman Lord Smith insisted SSE was helping customers with "the longest ever household energy price freeze in the GB market", but said it was also committed to rewarding investors with an annual dividend at least in line with inflation."We believe SSE is not part of the problem but part of the solution," he said.PW