British energy giant SSE has revealed a £115million hit from the pandemic in its first half with profits dropping 26 per cent.
It is among the energy firms which have taken a knock from Covid-19 lockdowns and restrictions which have impacted demand and new supply connections.
SSE said the estimated impact is slightly lower than expected but the group’s full-year earnings are down, with the blow set to be between £150million and £250million.
British energy giant SSE has revealed a £115 million hit from the pandemic in its first half with profits dropping 26 per cent
The Perthshire-headquartered renewable power generator and network operator reported underlying pre-tax profits of £193.9million for the six months to September 30, down from £263.4million a year earlier.
Underlying earnings were 15 per cent lower at £418.3 million.
Its distribution business saw earnings drop 27 per cent to £109.6million in the first half.
Despite the knock, SSE is forging ahead with £7.5 billion spending plans, which will see it invest in renewables and electricity networks.
It sold its household energy supply and services arm to OVO Energy at the beginning of the year in a deal worth £500 million.
This placed it in a position to benefit from Britain’s plans to reach net zero emissions by 2050, which will require a huge ramp up of renewable electricity, it said.
Commenting on the turn of events, Richard Gillingwater, the outgoing chairman of SSE, said: ‘Challenges lie ahead – not least in navigating another wave of the pandemic, the potential operational impact of the weather in the second half and the lingering uncertainties around Brexit – but these are far outweighed by the wealth of significant opportunities we have to create value in the transition to net zero emissions.’
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