Coal plants to power Scottish & Southern profits:
Scottish & Southern Energy is expected to report a 13 percent lift in first-half profit on Wednesday, say analysts, boosted by strong returns from its coal and hydro power plants and new gas assets. They will also be keen to hear its views on the takeover frenzy surrounding its peer Scottish Power. SSE has long been tipped as a potential merger partner for its local rival. Scottish Power said on Wednesday it had received a takeover approach, but declined to identify its suitor. Spain's Iberdrola has since said it was studying a bid. Five analysts polled by Reuters said SSE should report a pretax, pre-exceptional profit of between 424 million pounds and 453 million pounds for the six months to end-September, with the average forecast at 437 million pounds. Last year, the Perth-based firm with more than 7 million energy customers made a pretax profit of 386 million pounds. "The main drivers of the profit growth we expect are a full six-month contribution from the newly-acquired gas distribution assets, and improved profitability in the generation and supply division," Goldman Sachs analyst Jenny Ping said in a note. SSE owns the Fiddler's Ferry and Ferrybridge coal-fired power stations, which it bought in 2004 for 260 million pounds and made it the country's second-largest generator. In all, SSE generates around 15 percent of the UK's electricity. "SSE's landmark acquisition of the Fiddler's Ferry and Ferrybridge coal power stations has turned out to be amazingly profitable as power prices have risen," said Deutsche Bank Iain Turner in a note. SSE was formed in 1998 from the merger of Scottish Hydro-Electric and Southern Electric. 13.11.06