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(Alliance News) - SSE PLC on Tuesday lifted adjusted earnings per share guidance for its soon-to-end financial year, as a shortfall in output from renewable sources eased.
The Perth, Scotland-based energy company said it expects adjusted earnings per share in the range of 92 and 97 pence for the financial year ending on Thursday, up from its previous guidance of 90p. This would reflect an increase of as much as 11% from 87.5p in financial 2021.
The FTSE 100 company credited this to the good performance of its flexible thermal and hydro plant that continued despite "volatile" market conditions.
Further, the shortfall in output from renewable sources has narrowed to around 12% below plan as at March 22 from 19% below plan for the nine months to 31 December 2021.
The FTSE 100 company left its dividend unchanged, as it remains linked with the retail price index for now.
SSE said it will pay a 81p per share dividend in addition to RPI for this year. It will have an RPI-linked payout for the following year before a rebase to 60p in financial 2024, it continued, and then "at least" 5% increases in the two years after.
The company said it expects adjusted net debt to be below GBP9 billion at the end of March. It explained that this is due to the completion of the disposal of its investment in Scotia Gas Networks for cash proceeds of GBP1.3 billion.
In relation to Russia, the company added: "SSE does not have any energy supply contracts with Russian counterparties, and we are ceasing trading activities with these entities.
"The war has had significant consequences for energy markets and policy, contributing to historically high and volatile prices. However, SSE has so far been served well by its prudent hedging approach and has successfully managed any increasing credit and collateral requirements."
The impact of a prolonged conflict, or an escalation, is "difficult to predict", however, it said.
SSE shares were trading 0.6% higher at 1,701.50 pence each in London on Tuesday morning.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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