Airtricity's parent company sees profit increase

Energy giant SSE increased profits to more than £370m (€470m) in the first half of this year, despite an operating loss from the part of the business which sells power to consumers.

SSE’s energy supply business reported an operating loss of £16.9m, with company bosses saying this was a result of the competitive energy market and a sustained period of warm weather.

This however is lower than the loss in 2013 when rising costs had forced SSE to increase household energy prices – which it has pledged not to do for this financial year and into next.

Operating profits in its wholesale business fell by a massive 83.4% to £26.7m, as a result of lower electricity output from renewable sources due to the milder weather, and lower profitability in gas production – which slumped by 80.7% to £13.3m.

Overall preliminary results for the six months to the end of September showed that the adjusted profit before tax rose by 4.6% to £370.3m.

The power firm also reported total capital expenditure and investment of £679.3m in Britain and Ireland, saying this work would help ensure customers have a secure and affordable supply of energy in future years.

Major investment by SSE also saw the operating profit for electricity transmission rise by 46.3% to £98.9m.

SSE’s capital investment and expenditure for 2014/15 is now forecast to total just under £1.6 bn gross over the year.