SSE Sees Narrower Financial Outcomes Range on Lower Renewables Output; Backs Guidance
By Anthony O. Goriainoff
SSE said it noted a narrower range of probable financial outcomes for the fiscal year on lower-than-planned renewables output over the third quarter, and backed its adjusted earnings per share guidance.
The U.K. energy group said Thursday that SSE Renewables output over the first three quarters was around 15% below plan, or 10% below plan relative to the full year. SSE said this was mostly due to a combination of mixed weather conditions, short-term plant outages and the rephasing of flexible hydro output into the fourth quarter.
The company said that SSE Thermal's performance for the third quarter ended Dec. 31 continued to reflect lower spark spreads--the difference between the wholesale market price of electricity and the production cost using natural gas--and market volatility. Still, the business is expected to deliver fiscal 2024 guidance of over 750 million pounds ($947 million) in adjusted operating profit, and that this includes over GBP75 million from gas storage.
The company said that for the year ending March 31 it expected adjusted earnings per share of over 150 pence.
The company said it remained on track to deliver adjusted investment and capital expenditure of around GBP2.5 billion for fiscal 2024.
"Our long-term strategy remains unchanged and will deliver sustainable value for shareholders and society," the company said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
February 08, 2024 02:39 ET (07:39 GMT)
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