SSE PLC (LSE:SSE), the FTSE 100 energy company, upgraded its profit outlook for the full year after its renewable energy generation benefitted from better weather and Russia's invasion of Ukraine led to higher demand for its gas-powered plants.
Guidance for the 2021/22 financial year for adjusted earnings a share was lifted to between 92p and 97p, from the previous 90p.
SSE said it still intends to recommend a total dividend of 81p per share-plus RPI for the year and is continuing to target an RPI-linked dividend in 2022/23, followed by a rebase to 60p in 2023/24 and at least 5% increases in 2024/25 and 2025/26.
“SSE’s integrated and balanced business model has performed well in turbulent market conditions,” said finance director Gregor Alexander.
He said capital expenditure for the year to the end of March would exceed £2bn, which as part of November's Net Zero Acceleration plan included “a number of attractive options to support accelerated electrification of the economy...[and] make a huge contribution towards both net zero and energy security”.
The company, which said net debt would be under £9bn after it completed the disposal of its investment in Scotia Gas Networks on 22 March for £1.3bn cash, also published its new Net Zero Transition Plan.
This lists all its intended actions to achieve its net zero 'ambition' by 2040, though this is subject to security of supply requirements and with a gas power plant that is continuing to churn out carbon dioxide, with full net zero covering scope-3 emissions not until 2050.
Progress against this transition plan will be reported annually and summarised for shareholders at the annual meeting.