SSE maintains guidance even after lower renewables output

(Sharecast News) - SSE said its outlook for the current 2020 financial year remained unchanged from what it gave in May on Thursday, despite lower-than-forecast renewable energy output in the first three months.
The FTSE 100 energy firm reiterated its intention to recommend a full-year dividend of 80p per share for the year, in line with the five-year dividend plan it set out in May of last year.

It said the key months in its financial year were still to come, but the overall outlook provided in May in relation to adjusted operating profit across a number of its business units remained unchanged.

That was despite lower-than-expected output of renewable energy in the three months to 30 June, with the shortfall in output equivalent to less than 4% of the annual forecast total.

As the board stated in May, the outlook for adjusted operating profit included suspended capacity market payments totalling £148m.

Group adjusted net finance costs and group capital and investment expenditure continued to be in line with that set out in May.

The SSE directors said they believed that its dividends should be sustainable, based on the quality and nature of its assets and operations, the earnings derived, the value created from them and the longer-term financial outlook.

They said they remained committed to its dividend plan for the five years to March 2023, as set out last year, including a full-year dividend of 80p per share for the 2020 financial year.

"The early months of our financial year have brought some short-term challenges and some encouraging longer-term developments, but the key months of our financial year lie ahead," said chief executive Alistair Phillips-Davies.

"I am confident we will make good progress in delivering against our strategic priorities, including the five- year dividend plan out to 2023.

"The fact the UK has become the first major economy to legislate for net zero emissions by 2050 is a key development in the fight against climate change and reinforces SSE's strategic focus on regulated electricity networks and renewable energy, and our commitment to creating value through the low carbon transition."