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Highlights
- 26,698 shareholders of SSE will receive a final dividend payout of 56.6 pence per share for the year ended 31 March 2021
- Centrica recorded a 4% increase in free cash flow from continuing operations to £524 million in H1 2021.
Energy companies in the UK are currently focusing on efforts to reduce carbon emissions in line with the government’s net-zero targets. Reopening of the economy, increasing vaccination rates, and easing of international travel restrictions are expected to play a pivotal role in ensuring stable energy prices in the coming months.
The energy sector encompasses businesses engaged in exploring, producing, and marketing oil and gas and renewable resources. Here we take a detailed look at two FTSE energy stocks – SSE and Centrica and explore if they would serve as a good investment opportunity for investors.
SSE Plc (LON: SSE)
SSE is a multinational energy firm engaged in developing, owning, and operating low-carbon infrastructure to support the transition to zero-carbon. In August 2021, SSE agreed to sell its 33.3% stake in Scotia Gas Networks Ltd., a gas distribution operator, to a consortium comprising Brookfield Super-Core Infrastructure Partners and Ontario Teachers' Pension Plan Board.
On 2 September 2021, SSE announced that 26,698 shareholders would receive a final dividend payout (for the year ended 31 March 2021) of 56.6 pence per share with respect to 578,583,755 ordinary shares as Scrip dividend. The final dividend cash funding amounts to £327.5 million.
The shares of SSE traded at GBX 1,646.00, down slightly by 0.36% at 9:19 AM on 3 September 2021. The shares of the company gave a return of 30.60% in the last one year to shareholders, and the market cap stood at £17,235.23 million.
Centrica Plc (LON: CNA)
Centrica is an energy and services firm based in Berkshire. The company supplies gas and electricity to consumers in Ireland and the United Kingdom. Centrica reported an adjusted operating profit from continuing operations at £262 million for H1 2021 (H1 2020: £264 million). Its free cash flow from continuing operations rose by 4% to £524 million in H1 2021.
The shares of Centrica traded at GBX 52.74, up by 0.96% at 9:32 AM on 3 September 2021. The shares of the company gave a year-to-date (YTD) return of 13.54% to shareholders, and the market cap stood at £3,072.04 million.
