SSE PLC (LON: SSE) have reported a first half profit, causing shares to jump during Wednesday trading. This comes after a tough period of trading for SSE and a proposed sale involving Ovo.
Shares of SSE trade at 1,310p spiking 1.56%. 13/11/19 11:47BST.
The Chief Executive of SSE noted that he wanted the next government to address environmental concerns, and to take action on promoting renewable power at the front and centre of their climate change legislation.
He said: “The climate emergency needs action now and offshore wind has proven itself to be one of the most cost effective ways this country can decarbonise and get on the road to Net Zero.
“Coupled with lifting the moratorium on onshore, the next Government could deliver at least another 10GW of clean, green energy, before the end of its term – enough to power over seven million homes.”
The FTSE100 (INDEXFTSE: UKX) listed firm reported that profit rose to £128.9 million from a loss of £284.6 million last year, as SSE experienced a stagnated financial 2018, hence these results will be even sweeter.
Earnings per share reached 6.2p, up from -26.4p in 2018, which will certainly please shareholders.
However, the British Energy supplier did note a £489.1 million impairment on the sale of its household energy and services business in the UK, which Ovo Energy agreed to buy in September for £500 million.
The deal with Ovo is expected to be completed by early 2020, after the CMA triggered an investigation to check regulatory compliance.
In the energy industry, many firms have seen stagnating trading figures following tough market conditions.
Earlier this year, both Centrica (LON: CNA) and EON (ETR: EOAN) saw their shares crash following slumps in operating profits and poor trading periods.
Richard Gillingwater, chair of SSE, said: “SSE is progressing well in the execution of its low–carbon strategy with the sale of SSE Energy Services leading to group more focussed on renewable energy and regulated electricity networks.
“Clearly some headwinds remain in the sector with political uncertainty and aspects of UK government policy being subject to judicial process, however, we have strong optionality to create value through the low carbon transition and deliver our dividend commitments.”
