REG - SSE Plc - Q1 Trading Statement

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RNS Number : 3904R  SSE PLC  17 July 2025

SSE plc

Q1 Trading Statement

17 July 2025

·      Continued project and regulatory momentum, with confirmation that
the UK Government will not proceed with zonal pricing, and publication of
Transmission draft determination.

·      Strong Networks operational performance, with Renewables output
impacted by unfavourable weather conditions.

·      Reiterating 2026/27 adjusted Earnings Per Share guidance of 175 -
200 pence.

This statement reiterates the financial outlook as provided in SSE's Full-year
Results Statement on 21 May 2025, and provides operational performance data
ahead of today's Annual General Meeting.

Trading Update

Networks operational performance remained strong throughout the quarter, as
the Transmission and Distribution businesses have continued to progress their
capex programmes, increasing adjusted investment nearly 70% to around
£0.5bn(1) in networks, relative to the same quarter last year.

Strong Renewables operational availability was offset by unfavourable weather
conditions across April and May, resulting in a 4% decrease in output when
compared to the same period last year.

The financial expectations SSE set out in May 2025 remain unchanged and
continue to be subject to weather, market conditions and plant availability,
with the key winter months still to come.

(1) adjusted investment is net of SSEN Transmission 25% non-controlling
interest.

Strategic Progress

Significant progress continues to be made in delivering SSE's £17.5bn
five-year investment plan to 2027, with recent milestones on major projects
and notable policy and regulatory developments:

·      SSE welcomed the decision by the UK Government to retain a
national pricing system for wholesale electricity, bringing welcome clarity
for both investors and consumers whilst sending a strong investment signal
that reaffirms the UK as a world-leading renewables market.

·      SSE acknowledged Ofgem's Draft Determination for the RIIO-T3
Price Control, which recognises the critical and unprecedented scale of
transmission investment required. Whilst there has been some positive
movement, further progress is required and SSE will continue to work
constructively with Ofgem ahead of the Final Determination at the end of the
year to deliver the investible, financeable and ambitious framework needed to
meet the UK's net zero goals.

·      SSEN Transmission welcomed the Scottish Government's approval of
its Section 37 consent application for the Skye Reinforcement project. This
vital upgrade to the Fort Augustus to Skye overhead line will enhance energy
security and unlock renewables capacity across the region.

·      A final investment decision has been taken to build the Platin
power station in County Meath. The €300m, 170MW plant is designed to run on
Hydrotreated Vegetable Oil (HVO) with the potential to convert to hydrogen.
Consent is also being sought to run the station on natural gas to fully
utilise the plant's capability to meet Ireland's energy needs. Completion is
expected in 2028.

·      SSE welcomes the completion of the UK Government's AR7
consultation, including the intention to increase the length of new CfD
contracts from 15 to 20 years.

·      SSE has successfully completed a dual tranche issuance of hybrid
capital securities, comprising a €800m, 5.25-year note at a coupon of 4.0%
and a €500m, 8.0-year note at a coupon of 4.5%. Following upcoming hybrid
redemptions, this issuance will increase SSE's total outstanding hybrids by
around £500m to £2.4bn, supporting SSE's future growth strategy.

Barry O'Regan, Chief Financial Officer, said:

"SSE continues to deliver thanks to our resilient and balanced business,
coupled with our disciplined approach to capital investment. At the same time,
further clarity on growth opportunities for the Group are emerging, with
positive policy developments giving us even greater confidence in our ability
to create value from our high-quality project pipeline."

Alistair Phillips-Davies, Chief Executive, said:

"Today is my final AGM as Chief Executive and it has been a privilege to lead
SSE's transformation into a national clean energy champion. Through the hard
work and talent of countless colleagues over the years, we have aligned the
Group with an energy transition that is creating value for both shareholders
and society. I am proud of all we have achieved over my 12 years as Chief
Executive and have full confidence that SSE will continue to thrive under
Martin's leadership."

SSE plc Annual General Meeting 2025

SSE's Annual General Meeting takes place today, 17 July, at 12.30pm in Perth
and online. SSE's next scheduled business update will be the Notification of
Close Period statement on 2 October 2025.

Operational Performance

SSE Renewables

 

 Output - GWh                   3 months to                        3 months to

30 June 2025

                                                                   30 June 2024
 Onshore wind generation        1,233                              1,069
 Offshore wind generation       863                                874
 Conventional hydro generation  335                                565
 Pumped storage gross output    58                                 88
 Battery gross output           10                                 -
 Total renewables output        2,499                              2,596

Note: Output based on equity share and includes compensated constrained-off
generation.

 

SSE Thermal

 Output - GWh                          3 months to                        3 months to

30 June 2025

                                                                          30 June 2024
 Gas-fired generation (GB)             2,901                              3,072
 Gas-fired generation (ROI)            217                                266
 Energy from Waste & Biomass (GB)      68                                 11
 Total thermal generation output       3,186                              3,349

Notes:

1. Output is based on equity share except Marchwood where 100% of volumes are
included due to the contractual arrangement.

2. Output includes 26 GWh of oil-fired generation in the three months to 30
June 2025 and 27GWh of oil-fired generation in the same period in 2024.

3. During the year ended 31 March 2025, SSE Thermal took responsibility for
the Slough Heat and Power business from SSE Enterprise. Comparative
performance has been restated.

 

 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)  Ross Easton         +44 (0)345 0760 530
            MHP                                                           Oliver Hughes       +44 (0)7885 224 532

 

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