SSE

Ticker SSE

Today's data summary

Market closed
% change
-0.77%
Price Pence
1089.50
Change
-8.50
As of 20:45 16 Dec 2018
Market cap. Pound sterling
11,184.13 million
As of 20:45 16 Dec 2018

Latest updates

'It's not going to get easier'

SSE logo
PA

SSE shares are now up 0.9% to £11.42.

Energy supplier SSE is in for a continued rough time ahead, says David Barclay, Brewin Dolphin's senior investment manager.

"It’s been a tough year for SSE. An abnormally warm and calm summer resulted in lower than expected output from its wind farms and hydro-electric stations, while gas prices went in the other direction," he said.

"Although not in serious trouble yet, this latest update suggests it’s not going to get easier any time soon for SSE, with growth still static and uncertainty ever-present.

"Despite being slightly ahead of its predicted position after September’s profit warning, SSE will be hoping that the establishment of SSE Energy Services and the consolidation of its renewable operations will be enough to sustain the company in the long term.”

SSE unsure about future of merger

Wind farm
Getty Images

Further to SSE's woes - the energy supplier seems uncertain over whether its approved merger with Npower will go ahead as planned.

Last week, SSE and Npower announced that they were renegotiating the terms of a merger of their UK retail operations, blaming the introduction of an energy price cap.

SSE said in its financial results that "there is now some uncertainty as to whether this transaction can be completed, as originally contemplated, but we continue to believe the best future for SSE Energy Services lies outside the SSE group".

The energy supplier said that it is assessing "potential changes" to the commercial terms of the merger, and has a new business model focused on developing, owning and operating sustainable energy infrastructure and services.

SSE reports 'disappointing and regrettable' losses

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Getty Images

British energy firm SSE has reported losses of £246.4m for the six months to 30 September - a 40.9% drop compared to the same period in the previous year.

SSE said that revenues and cost of sales had been reduced by £7.9bn as a consequence of adopting the IFRS 15 reporting standard in April.

"Although our half-year results are slightly ahead of the position we set out in September, they fall well short of what we hoped to achieve at the start of the year," said SSE's chairman Richard Gillingwater.

"This is disappointing and regrettable, but important changes are now being made to the way SSE manages its exposure to energy commodities."

SSE shares drop on energy cap price hurdle

Gas cooker
Getty Images

SSE shares are leading the FTSE 100 fallers this morning, down 3.1% at £11.44 after it emerged that the firm and Npower have to renegotiate the terms of a merger of their UK retail operations because of the introduction of an energy price cap.

Informa, the exhibitions and publishing company, is the biggest blue chip risers - up 3.2% at 714.9p - after it reported a 3.9% rise in revenues for the year to date. It added that it is on track to meet full-year forecasts.

The FTSE 100 is down 0.63% at 7,095.79.

SSE and nPower merger gets go-ahead

Electric cooker
Getty Images

A merger between SSE Retail and nPower has been given the go-ahead by the Competition and Markets Authority.

Anne Lambert, chairwoman of the inquiry group examining the deal, says: "With many energy companies out there, people switching away from expensive standard variable tariffs (SVT) will still have plenty of choice when they shop around after this merger.

"But we know that the energy market still isn't working well for many people who don't switch, so we looked carefully at how the merger would affect SVT prices.

"Following a thorough investigation and consultation, we are confident that SSE and Npower are not close rivals for these customers and so the deal will not change how they set SVT prices."

FTSE 100 remains depressed

FTSE graph
BBC

Let's have another look at the stock market. The FTSE 100 remains down - it's currently at 7,468.80, a drop of 0.35% or 26.59 points.

Emergy supplier SSE is leading the winners; it's up 1.29% at 1,142.25.

Plumbing company Ferguson, which trades in the UK as Wolesley, is leading the losers after admitting UK trading is 'tough'. It's down 5.97% at 6,18.50.

Royal Mail remains in the doldrums after yesterday's profits warning: it's down 5.57% on the day at 369.65.