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(Sharecast News) - SSE reported a "strong performance" in its preliminary results for the year on Wednesday, with earnings per share coming in at the top end of guidance despite profits slipping.
The FTSE 100 company said adjusted operating profit for the 12 months ended 31 March stood at £2.43bn, reflecting a 4% decrease, while profit before tax remained stable at £2.18bn.
Adjusted earnings per share came in at 158.5p, a 5% decline from year-on-year.
SSE's reported figures, however, showed a substantial turnaround, with an operating profit of £2.61bn compared to a loss of £146.3 million in 2023, and profit before tax at £2.5bn, reversing a loss of £205.6m a year earlier.
Reported earnings per share swung to 156.7p from a loss of 14.7p in 2023.
Investment in capital and acquisitions totaled £3.29bn, up from £3.19bn in the prior year, while adjusted investment amounted to £2.48bn, a 12% reduction.
SSE's net debt and hybrid capital increased by 6% to £9.4bn on an adjusted basis, while reported net debt decreased slightly to £8.1bn.
Key operational achievements included the start of construction on the Eastern Green Link 2 subsea transmission cable, full power activation at the Seagreen offshore wind farm, and ongoing progress on the Dogger Bank wind farm.
The company also advanced its Viking onshore wind farm and Shetland HVDC link to the final commissioning phase.
SSE's Transmission segment saw increased profitability due to higher investment levels, while its Renewables segment benefited from higher hedged prices and increased output from the Seagreen wind farm.
However, lower profitability in SSEN Distribution was attributed to the timing of cost inflation recovery.
The company issued £1.1bn in long-term debt during the period, including a €750m eight-year Green Bond and a £500m 20-year Green Bond.
SSE said it also planned to recommend a final dividend of 40.0p per share, making the full-year dividend 60p, aligned with its growth-enabling dividend plan.
Looking ahead, SSE said it was aiming to deliver adjusted earnings per share of 175p to 200p by the 2027 financial year, representing a compound annual growth rate of 13% to 16%.
The company said it remained committed to its £20.5bn 'Net Zero Acceleration Programme Plus', with significant investments in electricity networks, renewables, and flexible power.
SSE said it was continuing to make substantial contributions to the UK and Irish economies, supporting over 50,000 jobs in the UK and more than 3,000 in Ireland.
It also noted the opening of Scotland's first immersive safety training facility, though it reported a slight increase in its total recordable injury rate.
"This is a strong performance where we have delivered essential energy infrastructure, benefited from the resilience of our business model, and made disciplined investment in our excellent growth opportunities," said chief executive officer Alistair Phillips-Davies.
"Renewables, flexible power and electricity networks are the building blocks of a cleaner and more secure energy system. With world-class assets and capabilities, and enhanced visibility of growth in transmission, SSE is ideally placed to benefit from this structural trend, creating value for shareholders and society.
"Our immediate focus is on delivering our financial and operational growth targets out to 2026-2027 and we are on track to do this, converting our premium organic project pipeline into high-quality sustainable earnings."
Reporting by Josh White for Sharecast.com.
