(Alliance News) - SSE PLC on Thursday reaffirmed its adjusted earnings per share guidance for the financial year ending March 31, with a "narrower" range of probable full-year financial outcomes, following lower-than-planned renewables output over its third quarter.
The Perth, Scotland-based electricity utility said output in its Renewables division in the three months to December 31 was around 15% below plan. This was due to a "combination of mixed weather conditions, short-term plant outages and re-phasing of flexible hydro output into the fourth quarter," it said.
As for its Thermal business, SSE said, "performance continues to reflect lower spark spreads and market volatility when compared to the same period last year". The division still is expected to deliver its guidance for adjusted operating profit of more than GBP750 million for financial 2024. This would be a 27% decrease from GBP1.03 billion in financial 2023, however.
SSE's final full-year results remain subject to plant availability, market conditions and normal weather, it warned.
Looking ahead, SSE said it remains on course to deliver an adjusted investment and capital expenditure of around GBP2.5 billion, compared to GBP2.16 billion a year ago. It also reaffirmed its earnings per share guidance of more than 150 pence, unchanged from a year ago.
Chief Financial Officer Barry O'Regan said: "Whilst the quarter has seen the business navigate some short-term challenges, we reiterate and continue to focus on the delivery of our 2027 financial and operational growth targets established in the NZAP Plus."
SSE's GBP18 billion NZAP investment plan, which launched in November 2021, aims to build a net-zero electricity system to lower the company's costs. In July, SSE said it had made progress in delivering the programme, having reached key milestones on several projects across the UK.
O'Regan added: "The strength of our balanced business mix and the growth opportunity it provides is aligned with a policy environment which increasingly recognises the essential role renewables, electricity networks and flexible power will play in the energy system of the future. Our long-term strategy remains unchanged and will deliver sustainable value for shareholders and society."
Shares in SSE were down 2.3% at 1,615.53 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
SSE (SSE)