REG - SSE Plc - Q1 Trading Statement

SSEAnnouncement

21/07/2022 07:00

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RNS Number : 2018T  SSE PLC  21 July 2022

 

SSE plc

q1 trading statement

21 july 2022

 

·    Reaffirming guidance of FY23 adjusted earnings per share of at least
120p

·    Performance slightly exceeding our expectations for the quarter, with
continued progress on key energy infrastructure projects

·    Commenced formal process for disposal of a 25% minority stake in SSEN
Transmission

 

This Trading Statement updates the market on the Group's financial outlook
since publication of the Group's Preliminary Full-year Results statement on 25
May 2022 and provides operational performance data ahead of today's SSE plc
Annual General Meeting.

 

trading update

Q1 performance has slightly exceeded our expectations and further demonstrates
the strength and stability provided by SSE's balanced mix of regulated and
market-facing businesses.  Progress across the various capex projects also
continues at pace, with first power from Seagreen offshore wind farm expected
by the end of this month and construction on Viking onshore wind farm and
Dogger Bank A, B & C offshore wind farms progressing well.

 

Correspondingly, as previously stated on 25 May 2022, SSE expects to report
full year adjusted earnings per share of at least 120p and anticipates
adjusted capital expenditure and investment to total in excess of £2.5bn*
this financial year.

Progress continues to be made on the disposal of a 25% minority stake in SSEN
Transmission with the formal process now under way. The Group has targeted an
agreed sale by the end of the calendar year, with completion following receipt
of regulatory approvals.

 

* including acquisitions but net of project finance development expenditure
refunds

Gregor Alexander, Finance Director, said:

 

"We continue to make excellent progress on our Net Zero Acceleration
Programme, investing at pace in the vital electricity infrastructure that will
help build a more secure, affordable and sustainable energy system.

 

"The strength of SSE's integrated and balanced business model, combined with
our commitment to positive engagement with key stakeholders, is serving us
well through a period of market, political and regulatory complexity.
Meanwhile, CfD success at Viking, progress on our Southern European pipeline
acquisition, the positive outlook for Transmission from the recent Holistic
Network Design and new hydrogen options at Saltend all position us well for
the long term.

 

"Having advocated for some time for an evolution of the current electricity
market frameworks to deliver net zero cost effectively and securely, we
welcome the recent BEIS Review of Electricity Markets Arrangements (REMA)
consultation, believing that an orderly consultative process is the right way
to deliver the necessary investment.

 

"We remain confident in our financial outlook for strong earnings growth this
year and look forward to updating the market on performance in our interim
results statement on 16 November 2022."

 

APPENDIX - Q1 PERFORMANCE

 

SSE Renewables

Output of electricity from renewable sources in which SSE has an ownership
interest across the UK and Ireland was 93GWh or around 5%, ahead of plan in
the quarter to 30 June 2022, mainly due to weather conditions.

 

                                                                    Actual output for 3 months to                        % of planned output  Planned output for 3 months to                        Actual output for 3 months to

30 June 2022
30 June 2022
30 June 2021
 Onshore wind generation output - GWh inc. constrained off output   1,133                                                115                  989                                                   791
 Offshore wind generation output - GWh inc. constrained off output  343                                                  86                   400                                                   290
 Conventional hydro generation output - GWh                         593                                                  101                  587                                                   593
 Total renewables output (excl. pumped storage) - GWh               2,069                                                105                  1,976                                                 1,674
 Pumped storage generation output - GWh                             60                                                   -                    -                                                     48
 Total renewables output - GWh                                      2,129                                                -                    -                                                     1,722

1.     Output based on contractual share and in the three months to 30
June 2022 includes 98GWh of onshore and 27GWh of offshore compensated
constrained off generation. The same period in 2021 includes 28GWh of onshore,
and 0.5GWh offshore, compensated constrained off generation.

 

SSE Thermal
Flexible thermal generation continues to play a key part in the GB and Irish
energy markets in the transition to net zero, creating shareholder value by
providing the vital flexibility and fast response services required in a
renewables-led system. Output of electricity from SSE's gas-fired generation
plant for the three months to 30 June 2022 was overall slightly ahead of the
same period last year, reflecting market conditions and individual plant
availability.

                                          3 months to 30 June 2022  3 months to 30 June 2021
 Gas-fired generation output (GB) - GWh   3,683                     2,840
 Gas-fired generation output (ROI) - GWh  126                       911
 Total gas-fired generation output - GWh  3,809                     3,751

 

1.     Output includes 143GWh of oil-fired generation in the three months
to 30 June 2022 and 177GWh of oil-fired generation in the same period in 2021,
primarily older Irish plant.

2.     In September 2021 SSE's offtake agreement for 100% of output from
its Seabank CCGT JV expired, with output following that date only recognised
to the extent of its 50% equity share.

3.     Output in Ireland in the three months to 30 June 2022 was impacted
by unavailability at Great Island CCGT.

4.     Output in GB excludes 459GWh of output in the period from Keadby 2
CCGT, with operational handover expected to occur on 1 October 2022.

 

sse plc annual general meeting 2022

SSE's Annual General Meeting 2022 takes place today, 21 July, at 12.30pm in
Perth. SSE will issue a further business update with its Notification of Close
Period statement on 27 September 2022.

 

 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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