REG - SSE Plc - Notification of Closed Period

SSEAnnouncement

04/10/2023 07:15

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RNS Number : 5910O  SSE PLC  04 October 2023

SSE plc

notification of closed period

4 October 2023

 

Ahead of the publication on 15 November 2023 of results for the six months to
30 September 2023, SSE plc is today updating the market on its performance and
outlook, including:

·    Expecting to report half-year adjusted earnings per share of at least
30 pence

·    Balanced, diversified business model continuing to underpin expected
full-year adjusted earnings per share of more than 150 pence

·    Continuing focus on disciplined execution of growth strategy, with
progress made on key projects

Half-Year Financial outlook

SSE expects to report interim adjusted earnings per share of at least 30
pence, largely reflecting the normal seasonal nature of operations that
deliver the majority of annual earnings in the second half of SSE's financial
year.

This guidance takes into account renewables performance which remains below
expectations, with output around 19% behind plan for the six months to 30
September, mainly due to adverse weather conditions. This represents around a
7% shortfall relative to the full year's planned output. It also reflects a
more stable market environment which is expected to drive a seasonal half-year
loss for gas storage, before reverting back to a profit for the full year when
gas is withdrawn. Finally, flexible thermal assets have continued to
demonstrate their value to the energy system during the period.

Following the successful issuance of a €750m eight-year Green Bond in
September 2023 at a fixed coupon of 4.0%, adjusted net debt is expected to be
around £9bn at 30 September 2023, with over 90% of financing still held at
fixed rates.

Progress Against Strategy

The Group made further progress in execution of its Net Zero Acceleration
Programme (NZAP) Plus, with recent highlights including:

·    Success of four large onshore wind projects in the UK's fifth
Contract for Difference (CfD) Allocation Round, with a total of 605MW
receiving 15-year contracts with a guaranteed strike price of £52.29/MWh
(2012 prices), annually indexed for CPI inflation.

·    Finalising the commissioning of Seagreen, Scotland's largest and the
world's deepest fixed bottom offshore wind farm.

·    Expecting first power on Dogger Bank - the world's largest offshore
wind farm - in the coming days, with work now under way in the complex turbine
installation stage of the project.

·    All 103 turbines installed at Viking onshore wind farm, as the
project now pushes towards energisation in summer 2024.

·    SSEN Transmission and National Grid Electricity Transmission have
secured development and planning consent for Eastern Green Link 2, with key
elements of the supply chain now also secured.

·    Secured regulatory approvals under the Large Onshore Transmission
Investment framework for transmission links to Orkney and Skye, alongside a
'minded to approve' decision for the Argyll reinforcement.

·    Confirmation from UK Government that the Acorn and Viking CCS
clusters in Scotland and North East England have been selected to progress in
Track 2 of the cluster sequencing process, leaving SSE's Peterhead and Keadby
carbon capture projects well positioned.

·    Commencement of construction in France on Chaintrix, a 28MW onshore
wind farm and SSE's first from the Southern Europe onshore development
platform acquired in late 2022.

Full-Year Financial outlook

The lower power price environment and more stable market conditions are
expected to continue for the remainder of this financial year but through its
balanced portfolio of assets across electricity networks, renewables, flexible
generation and storage, the Group still expects to deliver full-year adjusted
EPS of more than 150 pence which is unchanged from guidance given in May 2023.

With the key winter months to come, full-year performance remains subject to
weather conditions, plant performance and market conditions. These risks will
be carefully managed through the second half and SSE expects to provide
updated guidance on full-year EPS later in the year.

Finance Director, Gregor Alexander, said:

 

"Our primary focus remains on delivery of our five-year plan out to 2027,
which is the platform for up to £40bn of investment in net zero over the next
decade. We have reached key milestones in the construction of our flagship
renewables projects while gearing up to accelerate the build-out of critical
network infrastructure and offering much-needed flexibility to the system.

"Our strong balance sheet and financial discipline continue to allow us to
progress growth options within our diversified pipeline selectively. In the
long-term, there remains broad support for the accelerated build-out of
secure, affordable, low-carbon electricity infrastructure - both in the UK and
internationally - enabling the continued creation of shareholder and societal
value."

 Enquiries
 Investors  SSE Investor Relations  ir@sse.com (mailto:ir@sse.com)        Michael Livingston  +44 (0)345 0760 530

 Media      SSE Media               media@sse.com (mailto:media@sse.com)  Glenn Barber        +44 (0)345 0760 530
                                                                          Raymond Buchanan

            MHP Group                                                     Oliver Hughes       +44 (0)7885 224 532
                                                                          James McFarlane     +44 (0)7584 142 665

 

 

 

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