ENERGY giant SSE has warned half-year profits will tumble 50 per cent after suffering the effects of higher gas prices and warm weather.
The company said adjusted operating profit for the first five months of the financial year was knocked by about £19m, most of which was due to higher than expected gas and commodity prices. It was also impacted by dry, still and warm weather.
‘The net result is that SSE currently expects its adjusted operating profit for the six months to September 30 2018 will be around half of that delivered in the same period in 2017,’ the energy firm said in a trading statement.
SSE said its wholesale division is expected to show a ‘significant’ drop in adjusted operating profit from energy generation and an adjusted operating loss of around £100m. While gas production is set to deliver a rise in profit, it will not be enough to offset a loss across the business.
Chief executive Alistair Phillips-Davies said: ‘Lower than expected output of renewable energy and higher than expected gas prices mean that SSE's financial performance... has been disappointing.’