UK energy supplier SSE plans to create a new company that will include its renewable energy assets in the UK and Ireland in order to improve transparency and help it raise investment, it said today.
The move comes as SSE - which owns SSE Airtricity here - reported a 41% slump in adjusted pre-tax profit, as losses widened at its energy supply business.
The new company, to be known as SSE Renewables, will comprise around 4 gigawatts (GW) of SSE's existing renewable assets such as hydropower, onshore wind and several stakes in offshore wind projects.
SSE said creation of the new entity will provide greater visibility of assets and future earnings for investors and improve its ability to raise finance for projects.
SSE said it had begun looking at potential opportunities for onshore and offshore wind investments outside the UK and Ireland.
Adjusted pretax profit at the company, which includes energy supply and networks as well as generation, slumped almost 41% to £246.4m for the six months to September 30.
The company warned in September that profit would be hit as calm weather cut renewable output and a summer heatwave curbed demand.
SSE's UK household energy supply division, reported a widening loss of £68.7m from £17.8m.
SSE plans to merge the struggling unit with rival Innogy's UK retail business npower.
The two companies said earlier this month the tie-up would be delayed beyond the first quarter of 2019 due to market developments such as the looming implementation of a price cap.
"There is now some uncertainty as to whether this transaction can be completed as originally contemplated," SSE said today.
"The board believes that the best future for SSE Energy Services will continue to lie outside the SSE group," it said.
UK energy regulator Ofgem from January 1 will cap average annual household electricity and gas bills at £1,137, a level well below the most-used tariffs set by the country's big six suppliers.
Ofgem has said the move should save British households around £1 billion a year.
Margins at SSE's supply business are expected at 2-3% for the year ending March 2019, less than half the 6.8% achieved the previous year, partly due to the price cap it said.
Innogy said earlier this week that it has lost nearly half a million customers in Britain since the start of the year.
Despite the weak results today, SSE said it continued to recommend a full-year dividend of 97.5 pence per share for 2018/19, a move welcomed by analysts.