SSE profits (LON:SSE) tumbled 40% for the half-year, with the company blaming higher gas prices.
The energy firm reported that adjusted earnings per share is 19.6 pence, down 39.9%. Adjusted profit before tax came in at £246.4 million.
The statement added that loss per share would 22.6 pence, on a reported pre-loss of £265.3 million.
Moreover, the company said that its proposed merger with Npower would also face delays.
The merger has already been the energy regulator, and once completed, will create the UK’s second-largest energy supplier.
Company chairman Richard Gillingwater commented on the figures:
“Although our half-year results are slightly ahead of the position we set out in September, they fall well short of what we hoped to achieve at the start of the year. This is disappointing and regrettable, but important changes are now being made to the way SSE manages its exposure to energy commodities.”
“The commercial terms of the proposed combination of SSE Energy Services and npower are the subject of ongoing discussions, and creating a new independent energy supplier remains our objective. The Board believes that the best future for SSE Energy Services, including its customers and employees, lies outside the SSE group.”
With regards to future outlook, Gillingwater added:
“Looking ahead, we are taking forward the strategy we set out in May to position SSE as a leading energy company in a low carbon world, with a focus on regulated networks and renewables, complemented by flexible thermal generation and business energy sales. Material progress is being achieved in these businesses, which make up most of the value in SSE.”
Meanwhile, rival supplier British Gas, which is owned by Centrica, has also been struggling amid rising prices.
In 2017, British Gas lost 1.3 million energy accounts, as customers opted to switch suppliers amid continued hikes to bills.
Losses only continued into 2018, with British Gas losing 70,000 customers during the first four months of the year.
