SSE's dividend cover in its established range

30th Sep 2011 08:21

Utility firm Scottish and Southern Electricity had reassuring news for its legion of income-hungry shareholders as it said it is on course to increase its dividend by at least two percentage points more than retail price inflation, despite a heavy capital expenditure programme.The company said that it expects to maintain dividend cover - earnings per share divided by dividend per share - around its established range in fiscal 2011/12, despite forecast capital and investment expenditure of around £1.7bn.Providing an update of its current key large capital projects, the company - soon to change its name to SSE - said the construction of the Clyde South wind farm on the Clyde onshore project has now been completed. Construction work on Clyde Central and North is still in progress, and is set to be completed by the middle of 2012.The Griffin onshore wind farm is scheduled to be completed a few months ahead of schedule, by the end of this year. "This year has been characterised by volatile wholesale energy markets and rapidly-changing retail markets, which makes it all the more important that companies have a long-term view, focused on clear objectives," said Ian Marchant, SSE's chief executive. "Our commitment to above-inflation dividend growth is as strong as ever, and I am pleased with the significant progress of our investment programme, the assets from which will help to sustain dividend growth in the years ahead," Marchant added. --jh