SSE PLC (LSE:SSE) reported a modest rise in profits in the first half of the year as a strong performance in the renewables and thermal units offset a fall in the distribution business.
The FTSE 100-listed firm said in the six months to 30 September 2023, pre-tax profit rose 1% to £565.2 million from £559.4 million while adjusted earnings per share of 37.0p, although ahead of pre-close guidance, were down 11% from 41.8p.
Greater investment led to increasing profitability in SSEN Transmission, offset by the 25% non-controlling interest divested in November 2022, whilst the timing of cost-inflation recovery in SSEN Distribution principally led to lower profitability, down 31%, SSE said.
Profitability in Renewables jumped 479%, reflecting higher hedged prices combined with lower hedge buybacks required, while a strong financial performance was reported in SSE Thermal, with profits up 212%.
SSE declared a dividend of 20.0p, down from 29.0p a year ago, and expects to make a full-year payout of 60p.
It reiterated a commitment to target annual dividend increases of between 5-10% to 2026/27.
The firm reaffirmed guidance for full-year 2023/24 of more than 150p adjusted earnings per share and upgraded capital investment expectations to £20.5 billion for the five-year programme, reflecting increasing visibility over regulated networks spend and associated supply chain costs.