Bloomberg News

Scottish & Southern Says Second-Half to Make Up for Profit Slide

September 30, 2011

Sept. 30 (Bloomberg) -- Scottish & Southern Energy Plc, the U.K.’s second-largest supplier of gas to homes, said second-half earnings will compensate for “significantly” lower profit in the prior six months, allowing annual goals to be met.

Adjusted profit before tax for the six months ending today will decline from the same periods in both 2009 and 2010, the Perth, Scotland-based company said in a statement today.

Rising costs to use energy distribution networks, as well as wholesale and environmental-program charges have added to energy prices, Scottish & Southern said in July, prompting it to raise its rates for the first time in almost three years.

“This year has been characterised by volatile wholesale energy markets and rapidly changing retail markets,” Chief Executive Officer Ian Marchant said in the statement.

Scottish & Southern, which will go by the name of SSE Plc from Oct. 1, plans to spend 1.7 billion pounds ($2.65 billion) in fiscal 2012. The company completed construction of its 350- megawatt Clyde South onshore wind farm earlier than expected. In addition, 115 of the planned 140 turbines have been installed at the Greater Gabbard offshore wind development, it said.

Power generation at the company’s Glendoe hydroelectric plant in Scotland should resume in the first half of 2012, the utility said. The 100-megawatt plant was halted after a rock- fall in August 2009 partially blocked a tunnel that carries water to turn a turbine and generate power at the site.

--Editors: Tony Barrett, Stephen Cunningham

To contact the reporter on this story: Kari Lundgren in London at klundgren2@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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