REG - SSE Plc - Trading Statement

SSEAnnouncement

31/01/2020 07:02

RNS Number : 5003B
SSE PLC
31 January 2020
 


SSE plc
Q3 19/20 TRADING STATEMENT
31 January 2020

 
This Trading Statement covers SSE's third financial quarter ending 31 December 2019.
Financial outlook
In line with its interim results statement on 13 November 2019:
·     SSE continues to expect adjusted Earnings Per Share (EPS) for FY 2019/20 to be in the range of 83p to 88p*.  
·     SSE remains committed to its dividend plan for the five years to March 2023 and, in line with that, expects to recommend a FY2019/20 dividend of 80p per share.
Adjusted EPS expectations are always subject to hydro and wind assets benefiting from normal weather conditions. As at 31 December 2019, output of renewable energy for the first nine months of the financial year was just over 5% behind plan.
* Adjusted EPS excludes the Energy Services business sold on 15 January 2020 and the gas production assets which are held for sale
Key developments since interim results
·     SSE's final Transmission business plan for the RIIO-T2 price control was submitted in December, with proposals for £2.4bn of total expenditure, which would take potential RAV to over £5bn by 2026.
·     In December, Ofgem announced its decision in principle to endorse SSEN Distribution's proposal to contribute financially towards the proposed electricity transmission links to Shetland, Western Isles and Orkney. Based on current assumptions, this would be around £250m for Shetland, and SSEN Transmission has re-submitted its Needs Case for the proposed Transmission link to Shetland.
·     Also in December, the Queen's Speech included enhanced ambitions for offshore wind and carbon capture, usage and storage, which should present opportunities for SSE's renewables and thermal businesses. Good progress is being made on SSE Renewables' offshore wind projects with the first 'ground-breaking' at Dogger Bank on 17 January 2020 and several Tier 1 preferred supplier agreements signed in relation to both Dogger Bank and Seagreen.
·     SSE Renewables has also taken the final investment decision to proceed with the construction of an additional 11 turbines (up to 38MW) at Gordonbush onshore wind farm.
·     On 15 January 2020, SSE completed the sale of its Energy Services business to OVO Energy Limited, meaning SSE is no longer involved in supplying energy and energy services to households in GB.
·     SSE is on course to cease production at its last coal-fired generation plant at Fiddlers Ferry by the end of March 2020.
·     Work is continuing on the sale of gas production assets although a transaction will not be completed in FY2019/20.
 
 
Gregor Alexander, Finance Director of SSE, said:
"Strategic execution, good operational performance and optionality in SSE's portfolio remain critical for driving societal and shareholder value.  Since reporting our interim results we have continued to deliver on our priorities, focusing the SSE group on businesses that are well placed to play a leading role in delivery of a low-carbon strategy that supports the transition to net zero emissions.
"The first financial objective of that strategy is to remunerate shareholders' investment through dividends based on the quality and nature of assets and operations, earnings derived from them and the long-term financial outlook.  The first nine months of the financial year have been generally positive for SSE, and we are on course to deliver our FY2019/20 financial forecasts."
 
Operational performance indicators




 SSE Renewables


9 months to 31-Dec-2019


9 months to 31-Dec-2018




Onshore wind generation output - GWh


3,026


3,186




Offshore wind generation output - GWh


1,487


921




Conventional hydro generation output - GWh


2,294


2,250




Pumped storage output - GWh


127


168




Total renewables output - GWh


6,934


6,525




Output from electricity generating plant in which SSE has an ownership interest (output based on SSE's contractual share) across the UK and Eire. Wind output excludes 308GWh of constrained off generation in the nine months to 31 Dec 2019 and 437GWh in the same period the previous year. 




 




SSEN Distribution


9 months to 31-Dec-2019


9 months to 31-Dec-2018




Customer minutes lost (SHEPD) - average per customer


38


45




Customer minutes lost (SEPD) - average per customer


35


38




Customer interruptions (SHEPD) - per 100 customers


43


52




Customer interruptions (SEPD) - per 100 customers


37


40




Electricity transported through SSEN Distribution - TWh


28


28




These KPIs are part of the Interruptions Incentive Scheme for electricity distribution customers operated by Ofgem and excludes exceptional events.




 
 
 




SSE Thermal Energy


9 months to 31-Dec-2019


9 months to 31-Dec-2018




Gas- and oil-fired (incl. multi-fuel) generation output - GWh


12,321


15,138




Coal-fired generation output - GWh


1,003


519




Output from electricity generating plant in which SSE has an ownership interest (output based on SSE's contractual share) across the UK and EIRE.




 
Notification of Closed Period
SSE expects to issue a notification of closed period statement on 27 March ahead of publication of its preliminary results for FY19/20 on 22 May 2020.
Enquiries
Investors and Analysts                  ir@sse.com                        +44 (0)345 0760 350
Media                                              media@sse.com                +44 (0)345 0760 350
 
Alternative Performance Measures
Adjusted Earnings Per Share (EPS): The definitions SSE uses for adjusted measures are consistently applied and explained in the Alternative Performance Measure section of SSE's Interim Results statement published on 13 November 2019.
 
ENDS




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTFLFSALRIIVII