SSE says lagging renewables performance to drag on profits
Generator and green power developer posted soaring profits last year off back of volatile markets
UK utility SSE blamed adverse weather conditions for a lower than expected performance of its renewable energy assets as it flagged a dip in its expected earnings.
SSE announced today (Wednesday) that it expects to report adjusted earnings per share of at least £0.30 ($0.36), which it said largely reflected the “normal seasonal nature of operations” that deliver most annual earnings in the second half of its financial year.
This guidance takes into account renewables performance, which SSE said “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 said.
It also reflects a more “stable market environment,” which SEE said 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to drive a seasonal half-year loss for gas storage, before reverting back to a profit for the full year when gas is withdrawn.”
However, it said that through its “balanced portfolio of assets” it still expects to deliver full-year adjusted earnings per share of more than £1.50, which is unchanged from guidance given in May.
This time last year, SSE posted soaring profits of £0.42p per share as it cashed in on record high energy prices and a volatile market for its gas powered fleet.
“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,” he said.
SSE said it had made progress in its net zero ambitions, with recent highlights including the success of four large onshore wind projects totalling 605MW in the UK's recent green energy auction.