Glasgow-based utility ScottishPower saw adjusted profits for the year to March 31, 2006, grow by an impressive 47% to GBP675 million, while operating profits rose by 39% to reach GBP805 million.
This surge in bottom line growth was underpinned by improved operational performance and a strong return on asset investment, the company said. The firm also received a major cash windfall of GBP2.25 billion from the ahead-of-schedule disposal of its US business PacifiCorp.
Less positively however, ScottishPower warned that retail tariffs are likely to rise again in the near future – an admission that is unlikely to sit well with consumer groups and customers, given that the firm’s last round of price rises only occurred at the start of March 2006.
The utility is also plotting an extended investment program, including fitting flue gas desulphurization equipment to its coal-fired power station at Longannet to extend the life of the facility.
This is an excellent set of results for ScottishPower. All our businesses have delivered very good growth through improved operational performance and attractive returns on our investment program. With the sale of PacifiCorp completed, ScottishPower now has a strong set of businesses that are well positioned in their markets and offer attractive prospects for future growth. I am confident that ScottishPower will continue to make significant progress and create value for shareholders, commented chief executive Philip Bowman.