SECURITIES AND EXCHANGE COMMISSIONS
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15a-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of September, 2001.
SCOTTISH POWER PLC
(Translation of Registrant's Name Into English)
CORPORATE OFFICE, 1 ATLANTIC QUAY, GLASGOW, G2 8SP
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F ___
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(Indicate by check mark whether the registrant by furnishing the
information contained in the form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes ___ No X
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(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-_________.)
SCOTTISH POWER PLC
FORM 6-K: TABLE OF CONTENTS
1. 2001/02 2/nd/ Quarter Results for period ending, 30 September 2001
SIGNATURES:
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorised.
Scottish Power plc
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(Registrant)
By: /s/ Alan McCulloch
-----------------------
Alan McCulloch
Assistant Company Secretary
Date of signing November 7, 2001
Announcement Body Information:
2001/02 HALF YEAR RESULTS INCLUDING 2ND QUARTER TO 30 SEPTEMBER 2001
Key Points
- Refinancing of Southern Water to raise (Pounds)1.9 billion
- Actions to reduce commodity price exposure in US regulated
business
- Additional future UK operating cost reductions of (Pounds)40 million
in Infrastructure Division
Q2 Q2 First First
Half Half
00/01 01/02 00/01 01/02
1,463.1 1,605.3 Turnover ((Pounds) million) 2,780.8 3,289.9
223.6 46.7 Operating Profit 444.8 247.0
((Pounds) million)*
134.2 (45.5) Profit/(loss) before Tax 271.8 59.8
((Pounds) million)*
- - Exceptionals (pre-tax) (120.7) (120.1)
((Pounds) million)
6.11 (1.37) Earnings/(loss) per share 12.28 3.53
(pence)**
6.51 6.835 Dividends per share 13.02 13.67
(pence)
* Before goodwill amortisation and exceptional items
** Before goodwill amortisation and exceptional items, prior year
restated for deferred tax
CHIEF EXECUTIVE'S SUMMARY
The proposed (Pounds)1.9 billion refinancing of Southern Water will successfully
complete a significant part of a process, begun in early 2001, to create an
integrated international energy and networks company. As part of this process,
in addition to refinancing Southern Water, we have sold or closed our retail
stores, exited our financial services joint venture, sold our US synthetic fuels
business and Thus plc is looking to introduce third party funding to bridge the
gap to a cash flow positive position.
We have decided to pursue an innovative capital restructuring of Southern Water
which, subject to market and other conditions, will result in approximately
(Pounds)1.9 billion of ring-fenced borrowings in Southern Water. This decision
follows a detailed review, which concluded that refinancing would release more
capital to ScottishPower and offer less execution risk than the sale options
identified. The proposed restructuring will allow Southern Water to reduce its
cost of capital by funding this efficient level of indebtedness against its
regulatory capital value, which was (Pounds)2.1 billion at 31 March 2001.
ScottishPower will retain ownership of Southern Water and through this more
efficient capital structure will improve the return on its equity. For further
details please refer to the Notes to Editors following this statement.
Having taken steps to focus the company, our task now is to deliver steady
growth in earnings per share by capitalising on the opportunities afforded by
our strong positions in energy and networks in the US and UK.
Following a difficult period for the US Division, we are implementing a series
of actions designed to reduce commodity price exposure in our regulated US
business and recover through the regulatory process excess net power costs which
have already been charged to the profit and loss account. We are also bringing
on line new unregulated generating plant during the second half of the year and
we continue to deliver the Transition Plan on target.
We are continuing the successful integration of our energy businesses in the UK
Division, focused on improving service levels, reducing costs and increasing
margins. We have enhanced the flexibility of our generation portfolio by
successfully renegotiating the gas contract serving our 715 MW Rye House power
station. We have also completed the planned migration of all our residential and
small business customers to a single integrated billing system. We expect to see
sustained improvements in customer service levels and reductions in cost to
serve as we focus on maintaining the quality of our profitable customer base.
We have identified operating cost reductions of (Pounds)40 million by 2003/04,
in addition to the (Pounds)140 million of cash savings by 2002/03 already
announced in the Infrastructure Division. Southern Water has recently been
acknowledged by OFWAT as being one of the most efficient water companies in the
UK and we are making good progress towards achieving similar efficiency goals
for Power Systems in the UK and Power Delivery in the US.
With the successful completion of a very significant step in the reshaping of
the company, our strategic focus is to create shareholder value by continuing to
improve the performance of our existing businesses, expand across the energy
value chain and to transform and integrate new businesses. This strategic focus
is aligned to our stated aim of increasing dividends by 5% per annum to March
2003 and to our strong commitment to earnings growth.