(Alliance News) - SSE PLC on Wednesday posted a sharp profit hike, partly thanks to sizeable disposal gains, and the energy company said its GBP7.5 billion renewable-focused capital expenditure plan is on track.
Pretax profit in the year ended March 31 more than quadrupled to GBP2.52 billion from GBP587.6 million. SSE's profit was boosted by GBP850.3 million in exceptional gains, compared to a GBP209.7 million hit a year earlier.
This year's exceptional items included a GBP877.8 million net gain from disposals. Some of the assets SSE sold this year included its interests in a portfolio of gas exploration and production assets - which was bought by Viaro Energy for GBP120 million - and its 25% non-operating stake in Walney offshore wind farm for GBP350 million. It also disposed of its 50% share in energy-from-waste ventures Multifuel Energy Ltd and Multifuel Energy 2 Ltd for GBP995 million.
On an adjusted basis, pretax profit was 4.1% higher at GBP1.06 billion from GBP1.02 billion.
Meanwhile, revenue inched up 0.4% to GBP6.83 billion from GBP6.80 billion.
"Thanks to the commitment of employees right across the business in 2020/21 we made an important contribution to the national pandemic response, delivering strong operational performance, and making significant strategic progress," Chair John Manzoni
"We have also made significant progress on our non-core disposals programme, creating value for shareholders while continuing to sharpen the group's strategic focus on its low-carbon electricity core in networks and renewables, where our capital investment programme is progressing well."
SSE upped its annual payout by 1.3% to 81.0 pence per share from 80.0p.
Total generational output for the year slipped 3.1% to 28,287 gigawatt hours from 29,204.
SSE added: "The GBP7.5 billion capex plan is on track with construction well under way at flagship SSE Renewables projects including Seagreen, Viking and the world's largest offshore wind farm at Dogger Bank."
The company has decided against providing full guidance for the new financial year. However, it tipped the hit from the Covid-19 pandemic to be "mainly restricted" to its Enterprise and Business Energy arms.
SSE shares were down 0.3% at 1,546.00p each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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