SSE plc Reports Strong Interim Results and Strategic Progress

Sse Plc ( (SSEZY) ) has released its Q2 earnings. Here is a breakdown of the information Sse Plc presented to its investors.

SSE plc is a major British energy company primarily involved in electricity generation, transmission, distribution, and renewable energy within the utility sector, with a focus on supporting the clean energy transition.

SSE plc has reported a robust set of interim results for the six months ending 30 September 2024, achieving an adjusted earnings per share of 49.8p, aligning with market expectations. The company has maintained a strong balance sheet with 94% of its debt fixed at an average cost of 4.0%, and declared an interim dividend of 21.2p, a 6% increase from the previous year.

Key financial highlights include a 24.1% increase in operating profit to £860.2 million, driven by significant contributions from its electricity networks and renewables divisions, which accounted for over 95% of the adjusted operating profit. Investment in clean power infrastructure reached £1.3 billion, with major projects such as the Viking onshore wind farm and the Eastern Green Link 2 transmission project progressing well. SSE’s diversified portfolio has also benefited from favorable weather conditions, contributing to increased renewables profitability.

Despite a challenging market for SSE Thermal, where adjusted operating profit decreased to a loss, the company’s renewables and distribution segments have shown substantial growth. SSE Renewables increased its operating profit by nearly four times compared to the prior period, supported by higher wind speeds and increased operational capacity. The company continues to focus on its Net Zero Acceleration Programme, aiming to invest around £20 billion over five years, with significant progress already made.

Looking forward, SSE remains on track to achieve its financial targets, including an adjusted earnings per share of 175-200p by 2026/27. With ongoing investments in renewables and electricity networks, coupled with strategic alignment with the UK Government’s clean power goals, SSE is poised for sustained growth and value creation for shareholders.