SSE Warns 1st Half, FY18 Earnings to Be Hit by Lower Networks Profit

Utilities firm SSE PLC (SSE.LN) said Wednesday it expects first-half and full-year earnings for fiscal 2018 to be impacted by a reduction in networks, mainly due to the phasing of capital expenditure on transmission projects and the resulting impact on regulatory revenue.

SSE added that the unit will also be impacted by the sale its 16.7% equity stake in Scotia Gas Networks Ltd. last October.

The British energy company said networks adjusted operating profit for the year ended March 31, 2018 will be 150 million pounds ($201.2 million) lower than in the previous period.

Still, SSE said adjusted operating profit--which strips out exceptional and other one-off items--for the half-year ended Sept. 30 is expected to be higher in its wholesale and retail units.

The company expects first-half adjusted earnings per share in the range of 30 pence to 32 pence, compared with 34.2 pence previously, and lower than fiscal 2017 for the full year ended March 31.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

September 27, 2017 02:53 ET (06:53 GMT)