Energy giant SSE’s profits rose to more than £370 million before tax in the first half of this year despite an operating loss from its business that sells power to consumers.
That’s a 4.6% increase as a result of “significant investment” in electricity networks and progress in its business-to-business division, it said. The supplier reported total capital spending and investment of £679.3 million in Britain and Ireland.
The Big Six supplier said it saw an operating loss of £16.9 million in its Energy Supply business due to “extremely competitive market conditions” and warm weather.
SSE’s wholesale operating profits also fell by a massive 83.4% to £26.7 million as a result of lower electricity output from renewable sources.
It however saw an overall operating profit of £37.3 million compared to a loss of £71.4 million in the same period last year.
Despite the profits, the supplier expects full-year earnings per share to be at the lower end of its previous expectations.
Chariman of SSE Lord Smith of Kelvin, who will be stepping down from the company’s board in 2016 added: “The company remains, however, well-placed to deliver its principal financial goal of annual dividend growth that at least keeps pace with inflation while achieving good standards of performance for energy customers across the UK and Ireland.”
The power provider also disclosed it had lot a further 100,000 customer accounts since June. Earlier this year SSE announced a price freeze until “at least” January 2016.