TIDMSSE
RNS Number : 7147A
SSE PLC
27 September 2022
SSE plc
notification of closed period
27 SEPTEMBER 2022
Ahead of publication on 16 November 2022 of results for the six
months to 30 September 2022, SSE plc today updates the market on
its recent performance and outlook, including:
-- Expecting to report half-year adjusted earnings per share of
at least 40 pence, as balanced business mix continues to navigate
volatile market conditions
-- Continuing to expect full-year adjusted earnings per share of
at least 120 pence, against the backdrop of uncertainty associated
with a highly changeable operating environment
-- Investing at record levels, ahead of profits, in the clean
electricity infrastructure needed for decarbonisation and national
energy self sufficiency, including construction of the world's
largest offshore wind farm
Half Year Financial outlook
Since SSE's Q1 Trading Statement, good performance from gas
storage and flexible thermal has continued in volatile market
conditions, demonstrating their value to the energy system. At the
same time, lower-than-expected output, mainly due to weather, means
total renewable output for the year to 22 September was around 13%
below plan.
In light of this SSE expects to report half year 2022/23
adjusted earnings per share of at least 40 pence. However, as
performance over any six-month period can be variable, SSE focuses
on results for the financial year as a whole and manages its
businesses accordingly.
Developments in the execution of SSE's Net Zero Acceleration
Programme include:
-- First power from Seagreen, Scotland's largest and the world's
deepest tethered offshore wind farm, in August 2022;
-- Construction on what will be the world's largest offshore
wind farm at Dogger Bank and Viking onshore wind farm on Shetland
progressing to plan;
-- Delay to completing the commissioning of the Keadby 2 CCGT,
which is now expected to be available later this winter to help
ensure secure energy supplies;
-- Completion of the acquisition of the c.3.8GW Southern
European onshore wind development platform, with scope for up to
1.4GW of additional solar opportunities; and
-- Completion of the joint acquisition of Triton Power with
Equinor, including the 1.2GW Saltend power station which has
significant decarbonisation potential.
Adjusted net debt is expected to be around GBP10bn at 30
September 2022, with a high proportion held at fixed rates, and SSE
continues to have access to the capital markets with issuance of a
EUR1.0bn Hybrid Bond in April 2022 and a EUR650m Green Bond in July
2022. The Group's collateral requirements are within existing
facilities and SSE's GBP1.5bn of Revolving Credit Facilities
remains undrawn throughout the period.
Full Year Financial outlook
SSE's balanced portfolio of assets of electricity networks,
renewables and flexible generation and storage mean that the
Company is performing well in volatile market conditions. However,
risks remain given continuing market uncertainty and liquidity, a
fast-moving policy environment, weather variability, plant
availability and the complexity and scale of large capital projects
in which SSE is engaged. As always, SSE will seek to manage these
risks carefully through the winter period.
Despite the current highly changeable market environment, and
the resultant wide range of potential financial outcomes from
volatile future commodity prices, SSE's original full-year guidance
of adjusted earnings per share of at least 120 pence remains
unchanged. SSE expects to provide updated guidance on full-year
adjusted earnings per share later in the year, as the winter period
progresses.
SSE has been clear that any additional profit it may generate,
subject to the risks outlined above, will be reinvested in projects
that will provide long-term solutions that help reduce the UK's
exposure to volatile international gas prices. The Company remains
on course to report record 2022/23 capex in excess of GBP2.5bn
(including acquisitions) and expects leverage to be lower than the
target 4.5 times net debt to EBITDA ratio.
Finance Director, Gregor Alexander, said:
"Our balanced business mix has ensured a strong performance to
date, however in such highly volatile market conditions, financial
performance for the full year will be significantly influenced by
plant availability, weather and commodity price movements.
"SSE continues to deliver growth through its fully-funded
GBP12.5bn Net Zero Acceleration Programme that will benefit society
in the long term. Our plans include a growth enabling, rebased
dividend from 2023/24 onwards and SSE's net investment into vital
UK and Ireland infrastructure could exceed GBP25bn this decade,
creating thousands of jobs and ensuring secure, affordable, low
carbon energy systems.
"As an infrastructure company SSE's over-riding response to the
European energy crisis is to address the root cause of the problem
and we are committed to reinvesting any additional profits derived
from market variability directly back into energy infrastructure
that will prevent a repeat of the crisis in the long-term."
Enquiries
Sally Fairbairn, +44 (0)345 0760
Investors SSE Investor Relations ir@sse.com Michael Livingston 530
Sam Peacock, +44 (0)345 0760
Media SSE Media media@sse.com Glenn Barber 530
+44 (0)7885
MHP Communications Oliver Hughes 224 532
+44 (0)7709
Simon Hockridge 496 125
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