(Alliance News) - SSE PLC on Wednesday announced a foray into the Japanese offshore wind market through a joint-venture with Tokyo-based Pacifico Energy KK.
Separately, the company outlined first-half earnings guidance and explained it is "fully focused" on executing its strategy. SSE earlier in September had pushed back on press reports over a possible break-up of the company.
SSE share were 0.3% lower at 1,590.00 pence each in London on Wednesday morning.
On Wednesday, SSE explained its reason for the creation of a joint ownership company with Pacifico.
"The move to enter Japan's growing offshore wind market will help support the further expansion and diversification of SSE Renewables' longer-term growth pipeline," SSE said.
The joint-venture involves the acquisition by SSE Renewables of an 80% interest in an offshore wind development platform from Pacifico Energy for USD208 million. Of this, USD30 million is deferred and subject to a "number of conditions".
"Japan has clear offshore wind targets of 10 gigawatts by 2030 and 30-45GW by 2040 as the country seeks to decarbonise and achieve greater energy independence. The targets are backed by a commitment to run regular offshore wind auctions for support," SSE noted.
The partnership will acquire early-stage offshore wind development projects across Japanese waters.
SSE added: "The two most advanced projects have secured grid access and advanced local stakeholder engagement has been undertaken."
Separately, SSE said it remains focused on long-term, sustainable financial performance and remains confident about delivery of solid financial performance for the full year.
It expects to report adjusted earnings per share in the range of 7.5p to 10p for the half-year to September 30, which at best, would be a 16% drop from 11.9p a year earlier.
In addition, SSE expects to pay interim dividend of 25.3p, which is in line with its full-year payout aim of 80p plus UK retail prices index annual inflation. The planned 25.3p payout would represent a 3.7% hike from 24.4p a year earlier.
"The successful reshaping of the group through our disposals programme has sharpened the focus on our core renewables and electricity networks businesses, and those businesses that are truly complementary to them. We are creating significant growth opportunities, most recently with our Japanese announcement today," said Finance Director Gregor Alexander.
Last week Monday, SSE backed its net zero-aligned strategy and responded to press reports over a possible break-up of the company. In the week prior, The Telegraph said SSE was close to being split into two separate blue-chip companies following pressure from US activist fund Elliott Management.
There has been no decision to break up the group, SSE said last week.
SSE reports interim results on November 17.
By Eric Cunha; ericcunha@alliancenews.com
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