Market sort of going side ways of late

But I'm amazed that this one has hardly moved up In the last week

30p divi due tomorrow.

Anyone else watching these?

Trading Statement

SSE plc completed the third quarter of its financial year on 31 December 2014.
This trading statement:

· includes information about SSE's operational and investment activities for the nine months to 31 December 2014;
· confirms SSE's expected financial results for the year to 31 March 2015, which are forecast to be in line with the financial outlook given in the interim results statement;
· confirms that SSE still expects to report an increase in the full-year dividend for 2014/15 that will at least be equal to RPI inflation;
· confirms that SSE is targeting an increase in the full-year dividend for 2015/16 of at least RPI inflation, with annual increases thereafter of at least RPI inflation also being targeted;
· details key developments since SSE published its interim results on 12 November;
· announces that SSE will reduce household gas prices in Great Britain by 4.1% on 30 April and then extend its household gas and electricity price guarantee to at least July 2016; and
· includes an update on SSE's value programme of operational efficiency and asset disposals.

Best yields in utilities sector

Investec Buy 1,537.50 1,543.00 1,725.00 1,725.00 Reiterates

Credit Suisse Outperform 1,537.50 1,543.00 1,700.00 1,700.00 Reiterates

Deutsche Bank Hold 1,537.50 1,543.00 1,500.00 1,500.00 Reiterates

Norges Bank > 4%

Defensive, but no dullard

NOTIFICATION OF CLOSE PERIOD

SSE plc will enter its close period on 31 March 2015, prior to the publication on Wednesday 20 May of its financial report for the year to 31 March 2015.

Developments since publication of IMS
Since the publication of its trading statement on 26 January 2015, SSE has:
· successfully launched an issue of hybrid capital securities comprising £750m and €600m with an all-in funding cost to SSE of 4.02% per annum;
· confirmed a reduction in interim dividend cash funding of £81.6m as a result of the Scrip alternative;
· responded to the decision by other parties to seek permission from the CMA to appeal the decision of GEMA with regard to the electricity distribution price control for 2015-23;
· confirmed that Deputy Chairman Richard Gillingwater will take up his previously-announced appointment as Chairman on the completion of the Company's AGM in July, subject to being re-elected to the Board;
· been awarded a National Grid contract to provide voltage support from Peterhead Power Station for 18 months from 1 April 2016 with a baseline value of £15m; and
· announced the sale of Langhope Rig, a 16MW wind farm nearing construction completion in the Scottish Borders, as part of its disposal programme of onshore windfarm assets.

Financial outlook
As set out in its trading statement, SSE expects that it will deliver for 2014/15:
· an increase in the full-year dividend that is at least equal to RPI inflation1, expected to be around 2% ; and
· adjusted earnings per share1 that will be around the level achieved in 2013/14.
1 As defined in SSE's interim results statement in November 2014.

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Citigroup remains at sell on SSE, target raised to 1,455p from 1,390p.

Preliminary results for the year to 31 March 2015

Finance - SSE Group
The key financial results for the year to 31 March 2015 are in line with expectations set out in the Notification of Close Period published on the 26 March 2015 (comparisons with the previous year, unless otherwise stated):

· Adjusted earnings per share* increased by 0.6% to 124.1 pence;
· Adjusted profit before tax* increased by 0.9% to £1,564.7m;
· Reported profit before tax increased by 24.1% to £735.2m;
· Investment and capital expenditure fell by 6.8% to £1,475.3m;
· Adjusted net debt and hybrid capital decreased by £74.7m to £7,568.1m;
· Full-year dividend increased by 2% to 88.4 pence per share; and
· Dividend covered 1.40 times by adjusted earnings per share.

REVIEW OF COAL-FIRED GENERATION ASSETS

SSE plc has completed the assessment of the longevity of its remaining coal-fired generation capacity that it announced in March 2015 and concluded that it should:

· close all of the remaining capacity (1,014MW) at Ferrybridge, Yorkshire by 31 March 2016; and
· enter all of the remaining capacity (1,995MW) at Fiddler's Ferry, Lancashire into the auction for electricity generation capacity at the end of 2015 (for delivery in 2019/20).

The outcome of the review is consistent with SSE's long-standing objective to transition its generation assets from a portfolio weighted towards gas and coal towards a portfolio more weighted towards gas and renewable sources of energy; and with the wider commitment to operational and financial discipline set out in March 2014.

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Exane BNP Paribas Outperform 1,610.00 1,610.00 1,750.00 1,800.00 Retains

Ex-divi 23rd July (61.8p)

CMA ENERGY MARKET INVESTIGATION - PROVISIONAL FINDINGS AND NOTICE OF POSSIBLE REMEDIES

SSE plc notes today's publication by the Competition and Markets Authority (CMA) of its Provisional Findings and Notice of Possible Remedies in its GB energy market investigation. The CMA is now consulting on today's publications and SSE will submit comprehensive responses in the coming weeks.

Since a market investigation was first proposed in March 2014, SSE has argued that energy markets in Great Britain are generally well-functioning and competitive; while recognising the benefits of reforms that are in the interests of customers, and its responses to today's publications will be consistent with this view.

Following a number of stages of extensive consultation with the industry, Government and other stakeholders, the CMA is expected to publish its Final Report by the end of this year.

Alistair Phillips-Davies, SSE's Chief Executive, said:

"SSE has consistently maintained that whilst customers already benefit from healthy market competition, there is always room for improvement. We will now examine today's publications in detail, along with the analysis that underpins them. We will also continue to work constructively with the CMA as this process continues to help ensure that the opportunity presented by this investigation is fully grasped, and that the final result is an enduring outcome that gives customers confidence, allows regulators to regulate, and encourages investors to invest in the Great Britain energy market."

Energy customers 'paying too much'

UK Government Scraps Climate Change Levy, Reiterates North Sea Support

TRADING STATEMENT

SSE plc completed the first quarter of its financial year on 30 June 2015 and its Annual General Meeting is taking place today (23 July) in Perth. This trading statement:

· summarises operational performance in SSE's Wholesale, Networks and Retail (including Enterprise) businesses;
· sets out progress made in SSE's plans to invest around £1.75bn (gross) in the UK and Ireland in 2015/16;
· details developments since SSE announced its results for 2014/15 on 20 May 2015 while confirming its financial outlook;
· confirms that SSE is continuing to target adjusted earnings per share of at least 115 pence for 2015/16; and
· confirms that SSE is continuing to target an increase in the full-year dividend for 2015/16 of at least RPI inflation, with annual increases thereafter of at least RPI inflation also being targeted.

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SSE PLC GAS ASSETS ACQUISITION

SSE plc, through its wholly-owned subsidiary SSE E&P UK Limited, has entered into an agreement with Total E&P UK Limited to acquire: a 20% interest in the four gas fields and surrounding exploration acreage approximately 125km north west of the Shetland Islands, collectively known as the Greater Laggan Area; and a 20% interest in the new Shetland Gas Plant.

Following completion of the acquisition later in this financial year, Total E&P UK Limited will continue as operator of, and will own a 60% stake in, these assets. The remaining 20% is owned by DONG Energy.

The value of the transaction will comprise consideration of £565m for the assets (which reflects their value based on an effective economic date of 1 January 2015, including associated UK capital allowances) plus additional forecast investment of £350m in the period to 2018 to complete the entire development.


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NOTIFICATION OF CLOSE PERIOD

SSE plc will enter its close period on Thursday 1 October 2015, prior to the publication on Wednesday 11 November of its financial results for the six months to 30 September 2015.

Since the publication of its trading statement on 23 July 2015, SSE has:

· entered into an agreement with Total E&P UK Limited to acquire a 20% interest in four gas fields and surrounding exploration acreage in the Greater Laggan area and a 20% interest in the new Shetland Gas Plant;
· noted that the way is now clear for the 'Project TransmiT' reforms to Transmission Network Use of System charges to proceed from 1 April 2016;
· given notice, as issuer, that €500m of hybrid capital securities and £750m of hybrid capital securities will be redeemed in full on 1 October 2015;
· decided to build on its position as the best-performing of the 10 largest energy suppliers in responding to complaints by committing to resolve complaints within four weeks or advise customers of their right to contact Ombudsman Service: Energy - which is twice as fast as the industry standard of eight weeks;
· confirmed that 28,854 shareholders (26%) elected to receive their final dividend for the year to 31 March 2015 in the form of Scrip dividend, resulting in a reduction in final dividend cash funding of £159.5m;
· in line with the value programme set out in March 2014, invited non-binding bids for minority stakes in a number of wind farm developments;
· issued an eight-year/€700m euro bond, maturing in September 2023, with a coupon of 1.75% and an all-in funding cost when converted back to sterling of 3.19%;
· reached a landmark in its managed roll-out of smart meters across Great Britain with the installation of its 100,000th meter;
· been named by Citizens Advice in its quarterly Energy Supplier Performance report as the best performing of the largest 18 energy suppliers in Great Britain, with almost 20 times fewer complaints than the worst performing supplier;
· been advised that 5,720MW of capacity it submitted has so far pre-qualified for the capacity market auction later this year; and remains in discussions with the EMR Delivery Body with the objective of successfully pre-qualifying a further 427MW of capacity; and
· noted the CMA's final determination in respect of the RIIO-ED1 price control appeals. As relevant distribution network licence holders, both of SSE's distribution networks were named in the appeals. The result of the appeals will reduce the networks' combined average annual revenue by £2m.

Financial outlook
SSE focuses on results for the financial year as a whole because results for six month periods are more variable and more subject to the impact of shorter-term issues. In the previous financial year, SSE earned around one quarter of its full-year adjusted profit before tax in the first six months; in 2015/16 it is more likely to have earned over one third of its full-year adjusted profit before tax in the first six months. In the first half of 2014/15, operating profit in Wholesale was exceptionally low and Energy Supply reported an operating loss; in 2015/16 there has been high output of renewable energy, benefiting Wholesale, and relatively good performance in Energy Supply. SSE continues to manage a wide range of issues across its Wholesale and Retail businesses and, therefore, relatively good performance in these segments in the first six months does not change its outlook for the financial year as a whole.

SSE uses adjusted earnings per share (EPS) to monitor financial performance over the medium term because it defines the amount of profit after tax that has been earned for each ordinary share. As it has previously acknowledged, the nature of energy provision means that financial results in any single year are always subject to well-known uncertainties; nevertheless, SSE is continuing to target adjusted earnings per share for 2015/16 of at least 115 pence.

SSE is on course to achieve its principal financial objective for 2015/16, which is to deliver an increase in the full-year dividend that will be at least equal to RPI inflation. It continues to recognise that its dividend cover, based on dividend increases that at least keep pace with RPI inflation, could range from around 1.2 times to around 1.4 times over the three years to 2017/18. SSE continues to believe that a long-term target for dividend cover of a range around 1.5 times, also based on dividend increases which at least keep pace with inflation, is the right one to aim for.

Gregor Alexander, Finance Director, SSE, said:
"We are satisfied with the start we have made to the financial year, and are pleased to have made good progress in both the investment programme and the operational performance in each of the businesses. The priority now is to make sure that the business performs well throughout the autumn and winter, focusing on meeting the needs of Networks, Retail and Enterprise customers in particular, while achieving our key financial goals."

SSE says reported H1 pretax profit down 27.1%

StockMarketWire.com

SSE said its reported H1 pretax profit fell 27.1% to GBP230.8m, from GBP316.6m. Revenue was GBP13.83bn, from GBP12.41bn. Interim dividend was hiked by 1.1% to 26.9p.

Chairman Richard Gillingwater said:

"In the first half of this financial year SSE expected to deal with a number of challenging issues, such as the outcome of the UK Government's legislative programme and investigations by the Competition and Markets Authority.

"SSE has always acknowledged that there is uncertainty associated with these developments. The road ahead is becoming clearer, however, and there are grounds for cautious optimism that a stable long-term framework can be achieved.

"There should always be a degree of caution about half-year results, yet SSE has made a solid start to the 2015/16 financial year. Whilst market conditions can be challenging, SSE is a resilient business built for the long-term.

"With its balanced range of business, clear market focus, operational efficiency and strong financial management, this business is well-placed to continue to deliver annual dividend growth of at least RPI inflation."





Story provided by StockMarketWire.com

Deutsche Bank comment:
"SSE reported H1 results ahead of our estimates, mainly due to a better performance in the retail division. However, retail profits are still expected by the company to be down yoy while falling gas and power prices in the wholesale market make commodity conditions challenging. SSE has announced a further 500MW reduction of coal power capacity, showing the pain in the generation market. Despite the weak commodities, the good performance of regulated networks and lack of any acceleration in customer losses is supportive. Hold.

SSE reported H1 results c. £45m ahead, mainly on the retail business but the cautious tone on H2 means FY consensus is unlikely to move up significantly. Operating profit was £702m vs DB £658m, adjusted PBT was £548m vs DB £501m and EPS of 45.9p was 8.5% ahead of DB 42.3p. The better retail profits were due partly to colder weather than normal, but customer losses also slowed, to co 5% yoy,, which we found encouraging. The DPS was up 1.1% to 27.1p which is perhaps a little disappointing and below our hoped for 1.9%. However, this is still above the currently low RPI inflation. SSE reiterated its expectations that FY adjusted EPS would be at least 115p/share (DBE 116.5p on the SSE basis, or 102p after pension finance costs and deferred tax).

SSE has said that it will reduce transmission contracted coal capacity at Fiddlers Ferry by c. 500MW to just under 1500MW from April next year. This will save SSE transmission capacity costs but will further reduce available coal capacity in the market next year (with around 5000MW of other announced closures). While this may ultimately tighten the market and help to lift prices it shows the severe pain being endured by UK coal capacity against a backdrop of falling gas prices and increased carbon taxes. The results of the generation capacity auction on 8 December could trigger further closure decisions in the medium term.

Overall we continue to rate SSE a Hold. Its long term track record of dividend growth is impressive and its regulated networks continue to make excellent returns despite the step down in electricity distribution profits this year from the new 8 year price control. Offsetting this is an extremely challenging backdrop for market-exposed businesses with SSE’s clean hydro and wind generation seeing lower revenues from gas-linked power prices, and competitive and regulatory pressures limiting the retail margin."

SSE - profits and dividend rise