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?

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

Morgan Stanley today reaffirms its overweight investment rating on SSE PLC (LON:SSE) and raised its price target to 1650p (from 1620p).

Deutsche Bank today reaffirms its hold investment rating on SSE PLC (LON:SSE) and raised its price target to 1450p (from 1400p).

Energy giant SSE is considering shutting its Fiddler's Ferry coal-fired power plant early, threatening to blow a hole in the Government's plans to keep the lights on, the Telegraph has learnt. The 2GW power plant in Cheshire produces enough electricity to power two million homes and in 2014 secured a subsidy contract with the Government to guarantee three of the plant's four units would be available to generate in 2018-19. - Telegraph

Investec Buy 1,431.50 1,500.00 1,500.00 Upgrades

JP Morgan Cazenove Overweight 1,456.50 1,280.00 1,550.00 Upgrades

Sale of a stake in Clyde Wind Farm

Preliminary results for the year to 31 March 2016

18 May 2016
This report sets out the preliminary results for SSE plc for the year to 31 March 2016. It includes updates on operations and investments in its Wholesale, Networks and Retail (including Enterprise) businesses.

Overview
· SSE has met its main financial objective of an annual increase in the full-year dividend that is at least equal to RPI inflation - recommended full-year dividend up 1.1% to 89.4p;
· Adjusted earnings per share down 3.7% to 119.5p but ahead of target of at least 115p;
· Dividend cover of 1.34 times, which is within the expected range of 1.2 times-1.4 times;
· SSE is targeting a return to growth and adjusted earnings per share of at least 120p in 2016/17; and delivery of a full-year dividend that at least keeps pace with RPI inflation in 2016/17 and in the subsequent years;
· Taking account of the general uncertainties in the operating environment, SSE expects its dividend cover could range from around 1.2 times to around 1.4 times over the three years to 2018/19, based on dividend increases that at least keep pace with RPI inflation;
· Adjusted profit before tax fell by 3.3% to £1,513.5mand reported profit before tax fell by 19.3% to £593.3m;
· All three reportable business segments contributed adjusted operating profit during 2015/16: Wholesale earned £442.5m, down 6.6%; Networks earned £926.6m, down 1.1% and Retail (including Enterprise) earned £455.2m, down 0.4%. Overall, operating profit is as expected when SSE published its Notification of Close Period on 24 March 2016, although the mix of operating profit is slightly different;
· SSE recorded net exceptional charges of £889.8m before tax which was predominately related to impairment of certain Wholesale assets. Against this, SSE also recorded a gain on the disposal of an interest in its Clyde wind farm of £138.6m which was recorded directly in equity.
· Capital and investment expenditure totalled £1.6bn and adjusted net debt and hybrid capital was £8.4bn at 31 March 2016, compared to £7.9bn at 30 September 2015. While underlying cash flows remain strong, the increase in adjusted net debt follows the acquisition of, and resulting investment in, new gas production and infrastructure assets acquired in October 2015, and unfavourable movements in foreign exchange rates;
· SSE's total investment and capital expenditure is expected to be around £1.75bn in 2016/17 and in the range of £5.5-£6bn across the four years to March 2020;
· SSE continues to focus on operational efficiency and has also secured over £1bn from its asset disposal programme. With a small amount still to complete, this programme has already achieved its objectives and will support future operations and investment;
· SSE considers disposal of up to one third of its 50% equity stake in SGN Limited, with any proceeds being used to return or create value for shareholders; and
· SSE continues to engage constructively with policy-makers and regulators. There is now increased clarity on aspects of the external operating environment with the conclusion of the CMA consideration of the RIIO ED1 framework, planned revisions to the UK Capacity Market and the Provisional Decision on Remedies from the CMA investigation into the supply and acquisition of energy.

JP Morgan Cazenove Overweight 1,531.00 1,550.00 1,550.00 Reiterates

OFGEM CONSULTS ON REQUEST FROM NATIONAL GRID TO RECOUP SPENDING ON POWER STATION CONTRACTS

Ofgem is consulting on National Grid's request to recover the costs of two contracts for grid services that it agreed with SSE (for the Fiddlers Ferry power station) and Drax following a tender process. The contracts are worth £113 million in total.

These services refer to the ability of certain generators to start up and provide electricity to the transmission system without an external power supply (commonly referred to as "Black Start"). This is an insurance policy for the unlikely event that National Grid needs to re-energise the transmission system.

Traditionally coal plant has provided Britain with this capability, but the economics of running these plant have changed. This means they are available less frequently than before.

Ofgem set National Grid a cost target for these services. National Grid has spent significantly more money than the agreed target. National Grid has applied to Ofgem to recover all of these costs from generators and suppliers through the 'Income Adjusting Events' process.

When making a decision on this Ofgem has powers to disallow some or all of the expenditure on these contracts if it judges that the case for recovering the money has not been met.



-ends-

The Capital Group Companies, Inc. > 15%

Barclays Capital Overweight 1,592.50 1,675.00 1,675.00 Reiterates

TRADING STATEMENT

SSE plc completed the first quarter of its financial year on 30 June 2016 and its Annual General Meeting is taking place today (21 July) in Perth. This trading statement provides information on its operational and investment activities in the first trading quarter of the financial year including:
· a summary of operational performance in SSE's Wholesale, Networks and Retail (including Enterprise) businesses;
· progress made in SSE's plans to invest around £1.75bn in 2016/17 in energy infrastructure in the UK and Ireland;
· agreement to dispose of its three remaining PFI street lighting special purpose entities;
· an update on the possible sale of up to one third of SSE's equity stake in SGN, as announced at the 2015/16 Preliminary Results;
· confirmation that SSE is targeting a return to growth and adjusted earnings per share of at least 120p in 2016/17; and
· confirmation that SSE is continuing to target an increase in the full-year dividend for 2016/17 of at least RPI inflation, with annual increases thereafter of at least RPI inflation also being targeted.

StockMarketWire.com
SSE has hiked its interim dividend to 27.4p a share, from 26.9p, as its adjusted pretax profit slipped to £475.8m, from £548.8m.

It said it was on course to deliver annual dividend increases that kept pace with RPI inflation.

The utility was also on track to undertake capital and investment expenditure totalling almost £6bn over four years to March 2020.

"SSE continues to focus on the fulfilment of its core purpose of providing the energy people need in a reliable and sustainable way," said chairman Richard Gillingwater.

"In this financial year so far we have again delivered what we said we would, particularly with the sale of one third of our stake in SGN; further disciplined investment in networks and renewables; delivering high quality customer service; and the efficient operation of our assets.

"The operating environment presents some challenges, notably with changes to the UK Government and macro-economic uncertainty, with the added issue of Brexit.

"There have, however, been some welcome developments, particularly the UK Government's recent reforms to the Capacity Market in GB. SSE continues to engage constructively with governments and regulators to help them achieve their aims for the energy market.

"Whilst there should always be a degree of caution about interpreting half-year results, especially against a background of volatile market conditions, we have made a satisfactory start to this financial year.

"Looking to the challenges that lie ahead, our long-term focus will continue to be on operating our balanced range of energy businesses safely and efficiently and maintaining disciplined financial management.

"This long-term approach puts SSE on course to achieve our financial objective of delivering an increase in the full-year dividend at least equal to RPI inflation."

Interim Dividend Timetable

12 Dec Macquarie Outperform 1,506.50 1,700.00 1,700.00 Reiterates

12 Dec Barclays Capital Overweight 1,506.50 1,765.00 1,765.00 Reiterates

Changes to standard GB domestic energy prices; dual fuel bill to increase by 6.9%
· SSE to increase standard GB domestic electricity prices but will hold gas prices at their current level
· Price change equates to a £73 or an average 6.9% rise for a typical dual fuel customer*, as a result of an average 14.9%2 electricity price increase
· Electricity prices will increase from 28 April 2017
· Dual fuel customers will still pay less than they did at the end of 2013 due to three reductions in gas prices and one electricity price cut since then
· Rise reflects the increasing cost of supplying electricity
· SSE will establish a £5m fund, providing targeted financial assistance to minimise the impact on vulnerable customers

Three and a half years since its last price rise, energy supplier SSE has taken the difficult decision to increase standard domestic electricity prices from 28 April 2017, but confirmed it will hold gas prices at their current levels.

The 6.9%* dual fuel increase will mean a typical domestic customer will pay on average £731 a year more, which equates to around £1.40 per week, as a result of an average 14.9%2 increase in electricity prices. The new typical dual fuel bill of £1,142 per year remains cheaper than in November 2013 and gas prices remain the cheapest they've been since October 2012, thanks to three price cuts in the intervening period. This change to electricity prices will affect around 2.8 million SSE customers3 in Great Britain.

The price change reflects the increasing cost of supplying electricity, and specifically higher costs associated with delivering vital government programmes designed to upgrade Britain's ageing energy infrastructure and help the country move towards a low carbon future. These costs are levied predominantly against electricity customers.

SSE has sought to protect customers as much as possible and was the first major supplier to commit to holding prices until at least April 2017; it has resisted pressure on gas prices, and continues to bear down on its own controllable costs in order to minimise the impact of increasing costs on customers.

For those customers looking for security over their longer-term energy costs, SSE is now offering a fixed-price tariff for three years, providing peace of mind all the way to 2020.

Berenberg today upgrades its investment rating on SSE PLC (LON:SSE) to buy (from hold) and raised its price target to 1650p (from 1550p).

Goldman Sachs Neutral 1,432.50 1,528.00 1,528.00 Reiterates

Jefferies International Hold 1,432.50 1,550.00 1,400.00 Reiterates