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SSE has confirmed it still is working on “future options” for its retail arm, after merger plans with Innogy’s Npower subsidiary collapsed last year.
Ahead of its full results, which will be published on 22 May, the company said it is continuing to work on future options for SSE Energy Services, which could include “potential external collateral arrangements” outside the group.
It added all options are being assessed “with the interests of customers, employees and shareholders” being given full consideration.
The company said it plans to report back on its preferred option by the end of May.
According to SSE’s latest financial statement, it is expecting to deliver a dividend of 97.5 pence per share for 2018/19, with adjusted earnings per share in the range of 64-69 pence.
The latest figures also reveal its household energy supply business is still expected to report an adjusted operating margin of 2-3 per cent, compared to 6.8 per cent in the previous year, reflecting the introduction of the tariff cap and lower customer numbers.
The planned merger between SSE and Innogy’s retail arm Npower, was called off in December.
The two companies had been in discussions to negotiate the terms of the deal but were unable to reach an agreement.
Earlier this month, Innogy said it was considering “alternative options” for Npower.
“We are making encouraging progress in our core businesses of regulated energy networks and renewable energy, complemented by flexible thermal generation and business energy sales,” said SSE’s finance director, Gregor Alexander.
“Our disposals and stake sell-downs have generated over £1bn in proceeds, demonstrating our ability to create value for shareholders from developing and operating world class assets.”
“This year has clearly presented significant challenges and uncertainty in the operating environment persists, but our optionality and agility mean we are well placed to deliver on the strategy we presented last year to create value for shareholders and society from developing, owning and operating energy and related infrastructure in a sustainable way, as well as delivering against our five-year dividend plan,” added Alexander.
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