Gas and electricity group SSE saw its adjusted profit before tax fall 25.4% for the half year to September.
Pre-tax profit dropped from £385.5m in 2010 to £287.4m for the same six month period this year, mainly as a result of wholesale gas prices being 40% higher than in the previous year.
The firm said it took the decision to shield household customers from rising wholesale energy prices for as long as practical before implementing a price increase on 14 September.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Company chairman Lord Smith of Kelvin said: "There is no doubt that 2011 has been characterised by turmoil in the global energy markets, economic uncertainty across much of the world and widespread concern about the financial outlook for customers, companies and countries. This is not a straightforward time in which to do business.
"SSE's half-year results reflect the impact of a number of these issues, especially the high wholesale cost of gas which eventually necessitated the increase in household prices that unfortunately had to be made in September.
"We are expecting to report a moderate increase in adjusted profit before tax in our full-year results next May."
Despite the drop, the company increased its interim dividend by 7.1%.
NR
-
Thousands of Neil Woodford investors sue Hargreaves LansdownMore than 5,000 people who invested in Woodford's collapsed equity income product are taking Hargreaves Lansdown to court
-
Is now a good time to invest in gold?In the current market conditions, is gold a good investment? We explore the reasons why now might be a good time to put some money into gold.
