REG - SSE Plc - Notification of Closed Period

SSEAnnouncement

27/09/2022 07:00

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RNS Number : 7147A  SSE PLC  27 September 2022

SSE plc

notification of closed period

27 SEPTEMBER 2022

 

Ahead of publication on 16 November 2022 of results for the six months to 30
September 2022, SSE plc today updates the market on its recent performance and
outlook, including:

·    Expecting to report half-year adjusted earnings per share of at least
40 pence, as balanced business mix continues to navigate volatile market
conditions

·    Continuing to expect full-year adjusted earnings per share of at
least 120 pence, against the backdrop of uncertainty associated with a highly
changeable operating environment

·    Investing at record levels, ahead of profits, in the clean
electricity infrastructure needed for decarbonisation and national energy self
sufficiency, including construction of the world's largest offshore wind farm

 

Half Year Financial outlook

Since SSE's Q1 Trading Statement, good performance from gas storage and
flexible thermal has continued in volatile market conditions, demonstrating
their value to the energy system. At the same time, lower-than-expected
output, mainly due to weather, means total renewable output for the year to 22
September was around 13% below plan.

In light of this SSE expects to report half year 2022/23 adjusted earnings per
share of at least 40 pence. However, as performance over any six-month period
can be variable, SSE focuses on results for the financial year as a whole and
manages its businesses accordingly.

Developments in the execution of SSE's Net Zero Acceleration Programme
include:

·    First power from Seagreen, Scotland's largest and the world's deepest
tethered offshore wind farm, in August 2022;

·    Construction on what will be the world's largest offshore wind farm
at Dogger Bank and Viking onshore wind farm on Shetland progressing to plan;

·    Delay to completing the commissioning of the Keadby 2 CCGT, which is
now expected to be available later this winter to help ensure secure energy
supplies;

·    Completion of the acquisition of the c.3.8GW Southern European
onshore wind development platform, with scope for up to 1.4GW of additional
solar opportunities; and

·    Completion of the joint acquisition of Triton Power with Equinor,
including the 1.2GW Saltend power station which has significant
decarbonisation potential.

Adjusted net debt is expected to be around £10bn at 30 September 2022, with a
high proportion held at fixed rates, and SSE continues to have access to the
capital markets with issuance of a €1.0bn Hybrid Bond in April 2022 and a
€650m Green Bond in July 2022. The Group's collateral requirements are
within existing facilities and SSE's £1.5bn of Revolving Credit Facilities
remains undrawn throughout the period.

 

Full Year Financial outlook

SSE's balanced portfolio of assets of electricity networks, renewables and
flexible generation and storage mean that the Company is performing well in
volatile market conditions. However, risks remain given continuing market
uncertainty and liquidity, a fast-moving policy environment, weather
variability, plant availability and the complexity and scale of large capital
projects in which SSE is engaged. As always, SSE will seek to manage these
risks carefully through the winter period.

Despite the current highly changeable market environment, and the resultant
wide range of potential financial outcomes from volatile future commodity
prices, SSE's original full-year guidance of adjusted earnings per share of at
least 120 pence remains unchanged. SSE expects to provide updated guidance on
full-year adjusted earnings per share later in the year, as the winter period
progresses.

SSE has been clear that any additional profit it may generate, subject to the
risks outlined above, will be reinvested in projects that will provide
long-term solutions that help reduce the UK's exposure to volatile
international gas prices. The Company remains on course to report record
2022/23 capex in excess of £2.5bn (including acquisitions) and expects
leverage to be lower than the target 4.5 times net debt to EBITDA ratio.

 

Finance Director, Gregor Alexander, said:

 

"Our balanced business mix has ensured a strong performance to date, however
in such highly volatile market conditions, financial performance for the full
year will be significantly influenced by plant availability, weather and
commodity price movements.

"SSE continues to deliver growth through its fully-funded £12.5bn Net Zero
Acceleration Programme that will benefit society in the long term. Our plans
include a growth enabling, rebased dividend from 2023/24 onwards and SSE's net
investment into vital UK and Ireland infrastructure could exceed £25bn this
decade, creating thousands of jobs and ensuring secure, affordable, low carbon
energy systems.

"As an infrastructure company SSE's over-riding response to the European
energy crisis is to address the root cause of the problem and we are committed
to reinvesting any additional profits derived from market variability directly
back into energy infrastructure that will prevent a repeat of the crisis in
the long-term."

 

 Enquiries
 Investors  SSE Investor Relations  ir@sse.com (mailto:ir@sse.com)        Sally Fairbairn, Michael Livingston  +44 (0)345 0760 530
 Media      SSE Media               media@sse.com (mailto:media@sse.com)  Sam Peacock,                         +44 (0)345 0760 530

                                                                          Glenn Barber
            MHP Communications                                            Oliver Hughes                        +44 (0)7885 224 532
                                                                          Simon Hockridge                      +44 (0)7709 496 125

 

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