SSE expects "modest" profit growth for year

Thu 24 Jul 2008
LONDON (ShareCast) - Scottish and Southern Energy expects to deliver a modest increase in adjusted profit for the year even though first half profits will be "substantially" lower than last year.

"So far, 2008/09 has been characterised by extremely volatile wholesale markets for electricity and gas, and this may continue. Despite this, SSE (Frankfurt: A0RFBG) still expects to deliver a modest increase in adjusted profit before tax in the year to 31 March 2009," it said.

The group said previously the majority of its adjusted profit before tax in 2007/08 was delivered in the first six months but would reverse in 2008. "In line with this, adjusted profit before tax for the six months to 30 September 2008 will be substantially lower than in the same six months in 2006 and 2007," said the group today.

SSE feels the full impact on prices for electricity and gas in the UK has still to be felt. "We are continuing to resist the pressure to put up prices for domestic customers, but doing so is becoming more difficult by the day," it said.

It remains on course to at least 4% annual real growth in respect of 2008/09 and 2009/10 and said the balance sheet remains one of the strongest in the global utility sector.

Source:http://uk.biz.yahoo.com/080724/214/i3pdo.html