TIDMSSE
RNS Number : 5910O
SSE PLC
04 October 2023
SSE plc
notification of closed period
4 October 2023
Ahead of the publication on 15 November 2023 of results for the
six months to 30 September 2023, SSE plc is today updating the
market on its performance and outlook, including:
-- Expecting to report half-year adjusted earnings per share of at least 30 pence
-- Balanced, diversified business model continuing to underpin
expected full-year adjusted earnings per share of more than 150
pence
-- Continuing focus on disciplined execution of growth strategy,
with progress made on key projects
Half-Year Financial outlook
SSE expects to report interim adjusted earnings per share of at
least 30 pence, largely reflecting the normal seasonal nature of
operations that deliver the majority of annual earnings in the
second half of SSE's financial year.
This guidance takes into account renewables performance which
remains below expectations, with output around 19% behind plan for
the six months to 30 September, mainly due to adverse weather
conditions. This represents around a 7% shortfall relative to the
full year's planned output. It also reflects a more stable market
environment which is expected to drive a seasonal half-year loss
for gas storage, before reverting back to a profit for the full
year when gas is withdrawn. Finally, flexible thermal assets have
continued to demonstrate their value to the energy system during
the period.
Following the successful issuance of a EUR750m eight-year Green
Bond in September 2023 at a fixed coupon of 4.0%, adjusted net debt
is expected to be around GBP9bn at 30 September 2023, with over 90%
of financing still held at fixed rates.
Progress Against Strategy
The Group made further progress in execution of its Net Zero
Acceleration Programme (NZAP) Plus, with recent highlights
including:
-- Success of four large onshore wind projects in the UK's fifth
Contract for Difference (CfD) Allocation Round, with a total of
605MW receiving 15-year contracts with a guaranteed strike price of
GBP52.29/MWh (2012 prices), annually indexed for CPI inflation.
-- Finalising the commissioning of Seagreen, Scotland's largest
and the world's deepest fixed bottom offshore wind farm.
-- Expecting first power on Dogger Bank - the world's largest
offshore wind farm - in the coming days, with work now under way in
the complex turbine installation stage of the project.
-- All 103 turbines installed at Viking onshore wind farm, as
the project now pushes towards energisation in summer 2024.
-- SSEN Transmission and National Grid Electricity Transmission
have secured development and planning consent for Eastern Green
Link 2, with key elements of the supply chain now also secured.
-- Secured regulatory approvals under the Large Onshore
Transmission Investment framework for transmission links to Orkney
and Skye, alongside a 'minded to approve' decision for the Argyll
reinforcement.
-- Confirmation from UK Government that the Acorn and Viking CCS
clusters in Scotland and North East England have been selected to
progress in Track 2 of the cluster sequencing process, leaving
SSE's Peterhead and Keadby carbon capture projects well
positioned.
-- Commencement of construction in France on Chaintrix, a 28MW
onshore wind farm and SSE's first from the Southern Europe onshore
development platform acquired in late 2022.
Full-Year Financial outlook
The lower power price environment and more stable market
conditions are expected to continue for the remainder of this
financial year but through its balanced portfolio of assets across
electricity networks, renewables, flexible generation and storage,
the Group still expects to deliver full-year adjusted EPS of more
than 150 pence which is unchanged from guidance given in May
2023.
With the key winter months to come, full-year performance
remains subject to weather conditions, plant performance and market
conditions. These risks will be carefully managed through the
second half and SSE expects to provide updated guidance on
full-year EPS later in the year.
Finance Director, Gregor Alexander, said:
"Our primary focus remains on delivery of our five-year plan out
to 2027, which is the platform for up to GBP40bn of investment in
net zero over the next decade. We have reached key milestones in
the construction of our flagship renewables projects while gearing
up to accelerate the build-out of critical network infrastructure
and offering much-needed flexibility to the system.
"Our strong balance sheet and financial discipline continue to
allow us to progress growth options within our diversified pipeline
selectively. In the long-term, there remains broad support for the
accelerated build-out of secure, affordable, low-carbon electricity
infrastructure - both in the UK and internationally - enabling the
continued creation of shareholder and societal value."
Enquiries
+44 (0)345 0760
Investors SSE Investor Relations ir@sse.com Michael Livingston 530
+44 (0)345 0760
Media SSE Media media@sse.com Glenn Barber 530
Raymond Buchanan
+44 (0)7885
MHP Group Oliver Hughes 224 532
+44 (0)7584
James McFarlane 142 665
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