|
SSE PLC on Thursday reported ‘strong’ first quarter trading, which left its full-year outlook unchanged, and it announced plans to build a €300 million power station in Ireland. For the financial first quarter that ended June 30, the Perth, Scotland-based electricity generator hailed the performance in its Networks branch, but reported a 4% decrease in Renewables output, due to ‘unfavourable’ weather in April and May. Renewables generated 2.5 million gigawatts in the first quarter, compared to 2.6 million gigawatts a year prior. For financial 2026, SSE reaffirmed targets set out in May. SSEN Transmission is targeting adjusted operating profit 1.5 times higher than in financial 2025. However, SSEN Distribution expects adjusted operating profit at less than half of its financial 2025 level. Back in May, the branch recorded a £400 million decline due to the reversal of one-off inflationary cost recoveries. SSE Renewables is expected to deliver higher adjusted operating profit on-year, and SSE Thermal & Gas Storage profit is forecast to be largely flat. In 2025, adjusted operating profit was £322.5 million for SSEN Transmission, £736.0 million for SSEN Distribution, and £1.04 billion for SSE Renewables. SSE Thermal posted £248.5 million in profit, while Gas Storage posted a loss of £37.1 million. For financial 2027, SEE has restated guidance for adjusted earnings per share between 175 and 200 pence. In financial 2025, adjusted EPS was 160.0p. SSE also detailed plans for a new power station in County Meath, Ireland. The Platin project is a collaboration with Siemens Energy, a subsidiary of German technology firm Siemens AG, and the Atlantic Projects Company, a renewable energy contractor based in Limerick, Ireland. The power station has permission to generate 170 megawatts of electricity using wind power, backed up by biofuels. Platin will fortify energy supplies in the Irish region of Leinster, SSE said. Siemens turbines will be installed, and have ‘the potential to convert to hydrogen when infrastructure, fuel availability and policy frameworks allow’, SSE added. Chief Financial Officer Barry O’Regan commented: ‘SSE continues to deliver thanks to our resilient and balanced business, coupled with our disciplined approach to capital investment. 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.’ Thursday’s optimism follows SSE’s concerns over price controls proposed by UK regulator Ofgem at the beginning of July. The SSEN Transmission branch said Ofgem’s spending allowances ‘did not go far enough’ in funding the investment required for a clean power system by 2030. SSE has nonetheless committed to continue working with Ofgem, alongside London-based peer National Grid PLC. SSE shares were up 0.2% at 1,847.00p on Thursday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
