Scottish Power posts profits hike

Energy group Scottish Power bettered market forecasts today after annual profits lifted 10% on the back of rising electricity prices.

The Glasgow-based company, which operates power networks as well as supplying energy services, was also helped by a 16% improvement in UK customer numbers - up by 600,000 at £4.25m (€6m).

Profits for the group were £920m (€1.4bn) – ahead of the £905m (€1.4bn) expected in the City – after turnover rose by £523m (€782m) to £5.27bn (€7.9bn).

Turnover in the UK generation and customer supply business increased by 29%, while in the United States – where Scottish Power has around half its business - revenues in dollar terms were flat after lower wholesale volumes offset greater customer usage and favourable pricing.

Chief executive Ian Russell said it had been “another good year” for the group. He added: “Our strategy of improving operational performance and growing our returns through organic investment delivered strong results.”

The company pledged to invest another £1.2bn (€1.8bn) in the current financial year, with some of that likely to be in its wires business.

Scottish Power has the UK’s third largest electricity distribution business and said it intended to invest at least £1.2bn (€1.8bn) in its infrastructure network over the next five years.

The group also pointed out that customer gains in its core UK division had not been “won lightly” as it had benefited from a two-year drive to streamline operations in order to improve customer service.