When SSE reports its full-year figures on Wednesday, the markets are expecting to see that its sales have grown by more than 8% over the year, helping to drive the companies full-year profits up to around £1.48 billion.
These figures are probably going to see a proportion of the UK public voice their disapproval of the profitability of the utility firm. Once again one of the big six energy providers will be in the limelight even if it is arguably not for the wrong reasons. In a preemptive move SSE has commissioned an independent study to look into the firm’s contribution to the UK economy. As admirable as the £9.1 billion that SSE has added to the UK economy, and the 112,000 staff the company employs in the UK, I suspect the focus will quickly be diverted elsewhere.
The energy company will probably see its profits rising, helped by the fact that over 2013 the firm increased average customer bills by some 8.2% before freezing the rates in March until 2016. This does not make the company unique in this sector, but when viewed independently it will no doubt see the board asked some difficult questions by the press.
The shares have had a good run from the beginning of the year, increasing by 14.5%, but they are now approaching overbought territory and are some distance away from the 50-, 100- and 200-day moving averages along with the longer term resistance it is likely to encounter around 1580p. Although longer term the share price looks capable of heading higher, short-term resistance might see a correction take place first.