SSE's annual profit falls on lower energy prices
Updates throughout, detail of project delay
By Susanna Twidale
May 22 (Reuters) -British power generator and network operator SSE SSE.L posted a lower annual adjusted operating profit onWednesday, partly due to lower energy prices.
British energy prices fell last year compared with the record highs hit in 2022 across Europe following Russia’s invasion of Ukraine.
Adjusted profits at the company's thermal power division fell by 29% to 736.1 million pounds as "energy commodity prices normalise down during the second half of the year from the peaks reached in 2022/23," the company said.
Overall full-year adjusted operating profit came in at 2.43 billion pounds ($3.10 billion), a fall from 2.53 billion pounds last year.
SSE said it expects to raise its dividend for the 2024/2025 financial year by 5-10%.
SSE also confirmed a delay in full operations at its Dogger Bank A offshore wind farm which is now expected in the first half of 2025 rather than in 2024, as previously hoped.
Development of the project which is expected to have a total capacity of 1.2 gigawatts, capable of powering around 2 million homes, has been impacted by poor North Sea weather, installation vessel availability and supply chain delays, the company said.
SSE said the project has started producing power but will be at full capacity later than expected.
Globally offshore wind developers have been struggling with a lack of suitable vessels to help install new projects. Orsted last year scrapped two U.S. projects, flagging $5.6 billion in related impairments, after delays due in part to vessel availability led to soaring costs.
($1 = 0.7843 pounds)
Reporting by Susanna Twidale in London and Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips and Andrew Heavens
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