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SSE profits hit by heatwave and gas prices

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SSE profits hit by heatwave and gas prices

Profits dropped at energy giant SSE (LON:SSE) over the first quarter, with the UK heatwave and higher gas prices hitting financial results.

The group took an £80 million hit over the three month period, after households used around 10 percent less gas than expected due to the hot weather.

A fall in customer accounts also had an effect, falling to 7.45 million by June 30, down from 7.77 million a year earlier and 7.58 million in March. The negative news “will potentially” impact on its full-year results, the group said, dependent on a range of factors.

“This new financial year has so far been characterised by lower than expected output of renewable energy and persistently high gas prices, but looking ahead, we are very focused on fulfilling our obligations to energy customers and delivering on our key priorities,” said Alistair Phillips-Davies, SSE chief executive, in the trading update.

The group, who is currently in the process of merging its energy and supply business with rival Npower, committed to spending around £6 billion on investment and capital expenditure plans across the five years to March 2023.

Shares in SSE are currently trading down 3.41 percent at 1,337.32 (0914GMT).