SSE PLC (LON:SSE) shares fell even though it intends to pay its dividend this year as electricity demand is holding up during the current coronavirus crisis.
The energy generator and distributor said earnings for the year to March would be at the lower end of its 83p-88p range, but this is because of a weak network performance before the outbreak.
Coronavirus has yet to have any materially impact on the business and the power group will pay 80p as a dividend, though it added it will reconsider its decision if circumstances change.
SSE plans to pay a similar amount boosted by inflation in the 2020/21 financial year but this, too, will be assessed according to how the virus outbreak affects the business.
Broker RBC said despite the dividend commitment today, there are concerns over how sustainable it is in the current environment.
SSE is not as global as it speers said the broker while ‘the balance sheet also prevents us from being more optimistic on future growth ability’.
“We are also cautious on the ongoing COVID-19 situation and the impact on SSE from power demand and lower commodities,” added RBC.
Bank facilities total £1.5bn of which £75mln is currently drawn, with debt and hybrids at end-March of around £10.7bn.
Due to the impact of coronavirus on the audit process, results for 2019/20 will be delayed until the second half of June.
Shares fell 6% to 1,308p.
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