SSE PLC (LSE:SSE) has announced a reported pre-tax loss at the half-year stage but on an adjusted basis profits and earnings rose and shareholders were rewarded with a healthy 13.7% increase in the interim pay-out to 29p.
The FTSE 100-listed generator posted a reported pre-tax loss of £511mln compared to a profit of £1.6bn last year with profitability in Renewables negatively affected by the pace of project delivery and unfavourable weather, exacerbated by the associated requirement to buy back hedges in a higher-price environment.
But on an adjusted basis, EPS jumped 298% to 41.8p, in line with pre-close guidance, and SSE forecast annual growth of between 7% to 10% in EPS over the next five years to 2026.
Adjusted operating profits leapt 90% to £716.0mln and adjusted pre-tax profits of £559.4mln were up 221%, while SSE maintained forecast full-year adjusted EPS guidance of at least 120p.
Reported loss per share of 39.7p reflected a number of exceptional items and certain re-measurements, most notably the negative impact from £1.5bn of fair value re-measurements, principally arising on forward commodity contracts.
Thermal Energy delivered a strong performance with thermal generation and gas storage providing vital flexibility and security of supply to the energy system, it said.
SSE said it raised £1.7bn during the period, meaning it expects to have minimal long-term debt refinancing requirements until full year 2025.
Capital investment is forecast in excess of £2.5bn in 2022/23 with leverage well below the target of 4.5x net debt to EBITDA ratio.
Further rises in the dividend are planned with SSE looking at raising the pay-out in line with RPI in 2023 followed by a rebase to 60p in full-year 2024.
Alistair Phillips-Davies, chief executive, said: “Our business model and strategy are delivering for our stakeholders today, whilst creating future long-term societal value."