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The Markets
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Power & Utilities

SSE reports high-end earnings as renewables grow but gas falls

SSE PLC (LSE:SSE) has reported earnings at the higher-end of guidance, aided by increased profits from its renewables and transmission businesses.

Higher power prices and new capacity led to a 48% increase in adjusted renewables profits to £833.1 million, the FTSE 100-listed energy firm reported Wednesday.

Adjusted profit in SSE’s transmission business climbed by 13% to £419.3 million, aided by increased revenues allowed under the regulatory frameworks.

Overall, profit slipped by 0.4% to £2.17 billion, with normalised gas prices driving lower profit in SSE’s thermal division and its distribution business seeing lower earnings.

Per share earnings came in toward the top end of SSE’s guided range of 152-160p at 158.5p.

“Renewables, flexible power and electricity networks are the building blocks of a cleaner and more secure energy system,” chief executive Alistair Phillips-Davies commented.

“With world-class assets and capabilities, and enhanced visibility of growth in transmission, SSE is ideally placed to benefit from this structural trend.”

He added SSE was on course to hit targets over the coming years, including increasing investment to over £3 billion in 2025 in line with plans for £20.5 billion in the half decade to 2026.

Some £2.5 billion was invested last year, SSE said, including into starting construction on the Eastern Green Link 2 subsea transmission cable and fully opening the Seagreen offshore wind farm.

Debt sat at £9.4 billion as of the year end, with a flat full-year dividend of 60p per share being declared.

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