Shares in SSE were up 10% today after the energy firm confirmed it will pay a final dividend of 56p per share.
The payout comes despite the Perth-based group reporting that coronavirus had reduced demand for electricity by £18 million and that the pandemic had cost it £51.9 million. But it warned the clst for the full financial year could be £150-250 m illion.
SSE said adjusted operating profit was up 37% to £1.48 billion after exceptional charges of around £740 million, which partly related to the sale of its energy retail business to Ovo.
Chairman Richard Gillingwater said: "2019/20 was a year of progress for SSE. Financially, there was a solid recovery from the previous year. Strategically, we reshaped the Group with the sale of Energy Services and increased our focus on our core businesses of regulated electricity networks and renewable energy.
"Operationally, these businesses made significant progress towards our strategic priorities and ambition to be a leading energy company in a net zero world."
He added: "It is still too soon to predict with accuracy the full human, social, economic and business impact of coronavirus; but we have put in place a comprehensive plan to achieve the related objectives of sustaining the dividend payments which provides vital income for people's pensions and savings - income which is now more important than ever; and promoting the long-term success of SSE for the benefit of all its stakeholders."
SSE, which has switched focus to its renewables and energy transmission businesses, plans to cut spending, mainly capital expenditure, by at least £250 million in 2020/21 but today committed to investing £580 million in the Viking wind farm on Shetland.
John Moore, senior investment manager at Brewin Dolphin, said: “SSE has committed to its progressive dividend policy, which will be a massive relief to many income investors in the current climate.
"Aside from that, it’s a mixed bag for the underlying business, with its generation assets picking up slack from regulated activities. The investment in a major onshore wind project in Shetland is a significant move, as it helps grow the successful renewable energy division.
"However, in overall terms, the immediate trading picture appears more challenging and, although it appears to be in decent shape, SSE remains a business in transition. Whilst the dividend commitment will be welcome in many quarters, it does leave the company with little financial flexibility.”
