SSE reaffirms outlook and welcomes clarity after zonal pricing spat
Scottish renewable power giant SSE has reaffirmed annual guidance despite a decrease in quarterly renewables output.
The London-listed firm narrowed its annual earnings per share forecast earlier this year to between 155p and 160p and announced a multi-billion cut to future investment.
It has, however, held firm on long-term earnings targets and reiterated adjusted earnings per share guidance of between 175p to 200p on Thursday.
Quarterly renewables output dropped by four per cent year-on-year, largely due to “unfavourable weather conditions,” SSE said. It added future guidance for this year would be subject to “weather, market conditions and plant availability,” with the key winter months still to come.
Shares have risen by around 13 per cent this year to date and have remained broadly level in early deals.
SSE also “welcomed” a decision by the UK government to shun so-called zonal pricing on Thursday, after a vicious lobbying campaign between some of the UK’s biggest energy suppliers.
Octopus Energy boss Greg Jackson, who had championed the idea, accused his opponents of having a “vested interest” in keeping the status-quo, in an interview with City PM ahead of the decision earlier this month.
SSE welcomes zonal pricing decision
SSE said on Thursday that the decision to keep a national pricing system for wholesale electricity brought “welcome clarity for both investors and consumers,” while sending a “strong investment signal that reaffirms the UK as a world-leading renewables market.”
The company said it continued to make progress on its £17.5bn five-year investment plan to 2027, although it has previously said it is unlikely to meet its 2030 renewables goal.
“SSE continues to deliver thanks to our resilient and balanced business, coupled with our disciplined approach to capital investment,” Barry O’Regan, chief financial officer, said.
“At the same time, further clarity on growth opportunities for the group are emerging, with positive policy developments giving us even greater confidence in our ability to create value from our high-quality project pipeline.”
SSE’s outgoing chief executive, Alistair Philips-Davies, who will sit through his final AGM today, said: “It has been a privilege to lead SSE’s transformation into a national clean energy champion. Through the hard work and talent of countless colleagues over the years, we have aligned the group with an energy transition that is creating value for both shareholders and society.
“I am proud of all we have achieved over my 12 years as Chief Executive and have full confidence that SSE will continue to thrive under Martin’s leadership.”