SSE PLC (LSE:SSE), the energy company, reaffirmed its full-year guidance on Thursday despite a sharp drop in UK power prices and weather affecting its renewables output.
Its earnings per share guidance for the year to March 2024 was maintained at 150p, in line with forecasts from Deutsche Bank, but was behind Bloomberg consensus of 159p.
Despite reiterating earnings forecasts, SSE warned of a “narrower range of probable financial outcomes” due to the slowdown in its renewable outputs.
Renewable output was around 15% below original expectations for the first three quarters and 10% lower than full-year expectations, largely due to mixed weather conditions, which featured 10 named storms, and short-term outages.
SSE said the effects of the mixed weather continued into January.
Plant availability, supportive market conditions and better weather will also influence the London-listed group’s ability to deliver full-year earnings in line with guidance.
Adjusted investment and capital expenditure are predicted to reach around £2.5 billion by the end of the current financial year ending March 2024.
Barry O'Regan, chief financial officer, said: "Whilst the quarter has seen the business navigate some short-term challenges, we reiterate and continue to focus on the delivery of our 2027 financial and operational growth targets established in the Net Zero Application Programme (NZAP) Plus.”
SSE continues to deliver the £20.5 billion NZAP Plus, but suffered operational challenges during the third quarter, due to weather affecting turbine installation and supply chain issues.
Full operations at Dogger Bank A, the offshore wind farm, are predicted to be delayed until 2025 due to difficulties installing a new turbine.