SSE announces dividends among predictions that pandemic impact will be "temporary"

A UK energy company has today announced that it is retaining dividend payments as it predicts that the effects of the pandemic on its business will be “temporary”.

SSE, which provides gas and electricity, said that the impact of the pandemic is likely to be greatest in the first six months of the year, but expects to bounce back from the “adverse, albeit temporary” effects of the situation.

The company is gearing up to pay dividends to its shareholders - a move that many industries have delayed or cancelled for this year as they concentrate on recovery.

SSE said that it intends to declare a 24.4p interim dividend in November 2020 for payment in March 2021, based on an estimated RPI of 1.5 per cent.

Alistair Phillips-Davies, chief executive of SSE, commented: “Throughout the first quarter of 2020/21, our key workers continued to support the national coronavirus response by supporting the safe and reliable supply of electricity.

“Whilst the wider economic implication of the coronavirus continues to impact on the business, we’ve been investing in the green economic recovery and progressing our £7.5bn capex plan of low-carbon investments, primarily in renewables and electricity networks.

“At the same time, we are delivering the comprehensive financial plan we set out last month at our full year results, continuing work on our disposal programme and successfully issuing over £1bn in hybrid bonds.

“Although the key months of our financial year are still ahead of us, the steps we are taking leave us well placed to deliver on our financial objectives of promoting the long-term success of the company and paying dividends.”