SSE PLC on Tuesday upgraded its expectations for adjusted earnings per share following a strong performance in the year so far.
The Perth, Scotland-based energy company now expects adjusted earnings per share of at least 90 pence for its full-year ending March 31, up from previous guidance of at least 83p.
SSE attributes this to strength and stability from its ‘balanced mix of regulated and market facing businesses’. Strong performances were seen from its flexible thermal and hydro plants.
This helped to offset renewables output that had come at only 81% of planned levels of 7,304 gigawatt hours at 5,920 gigawatt hours for the nine months to December 31. This was also 16% lower than the output in the comparable period of the year before of 7,046 gigawatt hours.
‘The significant bolstering of SSE Renewables’ pipeline, the increased visibility we have over opportunities for greater growth in SSEN Transmission and the balance provided by SSE Thermal through a turbulent trading period have demonstrated yet again the value of SSE’s integrated business mix and its capacity for delivering sustainable shareholder returns over the long term,’ said Finance Director Gregor Alexander.
It expects to pay out a dividend of 81p per share plus retail price index in financial 2022, and continues to target an RPI linked dividend for the next year. It will rebase to 60p per share for financial 2024, with at least 5% increases in the two years to follow.
The energy company expects to report full-year capital expenditure in excess of £2 billion, with net debt at year-end of around £9 billion. This would be provided that the proceeds from its disposal of 3.3% interest in Scotia Gas Networks Ltd are received before the end of the year.
‘SSE’s performance in the year so far gives us renewed confidence about delivery of good financial results for the full year. When coupled with the progress made on our capex plans in recent months, it also highlights the value we are creating for all stakeholders from continued execution of our net zero-aligned strategy,’ Alexander continued.
SSE’s share price was up 1.4% to 1,573.71 pence in London on Tuesday morning.
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