In This Article:
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Adjusted Operating Profit: GBP860 million, 24% higher than the prior year.
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Adjusted EPS: 49.8p, in line with expectations for the period.
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SSEN Transmission Adjusted Operating Profit: Decreased by 27% to GBP157 million.
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SSEN Distribution Operating Profit: Increased by 188% year-on-year to GBP346 million.
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SSE Renewables Operating Profit: Increased by 287% year-on-year to GBP336 million.
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Thermal & Gas Storage Operating Loss: GBP44 million for the half year.
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Adjusted Net Debt: GBP9.8 billion as of September 2024.
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Interim Dividend: 21.2p, reflecting an increase of 6% on the prior year.
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CapEx Investment Target: Around GBP20 billion by 2027.
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Green Bond Issuance: EUR850 million eight-year green bond issued in August 2024.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SSE PLC (SSEZF) reported a strong start to the financial year with a 24% increase in adjusted operating profit, reaching GBP860 million.
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The company has made significant progress in its five-year investment plan, targeting around GBP20 billion in CapEx to drive long-term earnings growth.
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SSE PLC (SSEZF) has a balanced business mix that provides resilience and multiple growth options, particularly in renewables and electricity networks.
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The company is well-positioned to benefit from the clean energy transition with a strong portfolio in renewables, flexibility, and electricity networks.
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SSE PLC (SSEZF) declared an interim dividend of 21.2p, reflecting a 6% increase, and remains committed to its dividend growth plan of 5% to 10% per annum.
Negative Points
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The thermal business experienced a small loss in the first half due to stable market conditions and low volatility, impacting overall profitability.
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SSE PLC (SSEZF) faces challenges with the Dogger Bank project, including delays and increased costs related to installation vessels.
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The company is dealing with uncertainties in the supply chain for its transmission projects, which could affect cost and delivery timelines.
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There are ongoing concerns about the impact of locational marginal pricing on investment in the UK energy market.
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SSE PLC (SSEZF) is navigating a complex regulatory environment, particularly with the upcoming RIIO-T3 plan and the need for favorable regulatory outcomes.
Q & A Highlights
Q: Can you provide an update on the Berwick Bank project and your ambitions outside the UK and Ireland? A: The Berwick Bank project, a 4.1 GW wind farm, is awaiting a decision from the Scottish consenting authorities, which we hope to receive before the AR7 eligibility window closes. Internationally, while our focus remains on organic growth, we are open to M&A opportunities in Europe where we see value.