SSE reports solid operational performance

The FTSE 100 power giant confirmed that expectations for business unit operating profit remained unchanged.

It said renewables output for the first three quarters of the financial year was 26% higher than the same period last year, driven by additional capacity and weather conditions.

January brought further variability in renewables generation, but overall, SSE’s electricity networks division has continued to deliver strong operational performance.

The company cautioned that full-year earnings remained subject to factors including market conditions, weather, and plant performance over the final quarter.

An update on performance for the remainder of the year would be released on 2 April.

SSE said that strategically, SSEN Transmission had published its RIIO-T3 Business Plan, outlining at least £22bn in critical grid infrastructure investment over the five years to 2031, supporting UK and Scottish energy security and net zero goals.

The plan included a potential additional £9.4 billion in expenditure, bringing the total to around £32bn, with the company expecting to complete planning submissions for its remaining ASTI projects in the coming months.

SSE Renewables meanwhile continued its expansion, with first power achieved at the 101MW Yellow River onshore wind farm and a financial investment decision reached on the 208MW Strathy South onshore wind project.

The first phase of the Dogger Bank offshore wind farm remains on track for completion in the second half of 2025, with SSE securing a second installation vessel from 2026 to support the project’s later phases.

SSE Thermal had meanwhile taken a final investment decision on the 300MW Tarbert Next Generation power station in Ireland, which would run on sustainable biofuel and was backed by a 10-year capacity agreement.

The facility was expected to be operational by late 2027.

Additionally, SSE said it secured 522MW of de-rated electricity generation capacity in Ireland’s T-4 2028-2029 capacity auction, with a significantly increased clearing price of €149,960 per MW.

“We are pleased to report good operational performance during the quarter and, more recently, we were able to provide a swift and effective response to Storm Eowyn, with our teams expertly managing widespread network disruption,” said chief financial officer Barry O'Regan.

“Looking further ahead, our resilient and balanced business mix continues to give us confidence in achieving targeted adjusted earnings per share of between 175p and 200p in 2026-2027.”

O'Regan said that as a result of SSE’s focus on renewables, networks and system flexibility, it was a “key delivery partner” in the UK's Clean Power Action Plan.

“As we look to the opportunities presented by decarbonisation our focus remains on capital discipline, strategic delivery and the efficient operation of our value-creating assets.”

At 0818 GMT, shares in SSE were down 0.77% at 1,602.5p.

Reporting by Josh White for Sharecast.com.