SSE share price: what to expect from its Q1 results
With the UK power company’s Q1 results coming up on Thursday next week, its CEO has warned that Labour party threats to renationalise energy networks is hurting its ability to attract new investors.
When is SSE’s results date?
SSE will unveil its Q1 results and hold its annual general meeting (AGM) on July 18.
SSE’s results preview: what does the City expect?
Investing in utilities companies like SSE is usually a no-brainer in tough economic times, with these stocks usually providing stable growth and decent dividends.
However, the appetite for UK-based energy providers is low at the moment, with them all facing a myriad of macroeconomic headwinds and increased regulatory scrutiny.
A major concern for investors in SSE is the number of customers it continues to lose to cheaper, smaller and nimbler rivals in the energy sector, with it losing more than one million gas and electricity customers over the last two years.
Investors will be keeping a close eye on its customers numbers when it unveils its Q1 results next week.
To make matters worse, SSE’s earnings failed to meet expectations last financial year, with company facing an uphill battle to improve things this year considering the pressure it is under.
SSE struggles to attract new investors over Labour party renationalisation threats
In a recent interview with the Financial Times, SSE CEO Alistair Phillips-Davies said that the company has struggled to attract new investors in the wake of the Labour party threatening to renationalise energy networks.
‘We are in a situation where you have… an event that appears unlikely but could have quite nasty effects and so it’s difficult for us to get new investors to buy into the stock,” Mr Phillips-Davies told the Financial Times.
Jeremy Corbyn’s Labour party first threatened renationalising energy networks as part of its 2017 general election manifesto.
Since then, SSE has seen its share price slide more than 20% and with yet another UK general election likely to occur this year, the threat posed by the Labour party could easily materialise.
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