ScottishPower has received a cash sum of £400m, following a financial hedging strategy that included a policy of hedging substantially its dollar net assets.
Hedges that were taken out at around $1.40 to the pound have recently been renewed, maintaining an equivalent hedged cover. The money made from re-pricing those hedge positions will be used to reduce year-end net debt and to improve the interest charge in the next financial year.
The firm says its expectations for the full year to 31 March are consistent with those stated at the time of the third quarter results. It aims “to make good progress with our strategy of improving operational performance and investing for organic growth”.