SSE invests four times more than it makes in profit
Energy giant SSE focused on its investment in the transition to clean technologies as it reported another surge in profits.
The Perth-based company posted a 221% rise in adjusted pre-tax profits to £559.4m (2021: £174.2m) for the half year to the end of September. It declared an interim dividend of 29p per share.
The group said its renewable output was impacted by unfavourable weather, but was on track to deliver its targets. It has invested almost four times as much as it made in profits in the first half of the financial year.
Alistair Phillips-Davies , chief executive, said: “One year on and despite unprecedented volatility in the operating environment, our Net Zero Acceleration Programme has never been more relevant to society.
“We are investing around £12.5bn in the five years to March 2026, with further opportunities that could take the total to over £25bn this decade in the UK and Ireland alone.
“This direct investment primarily in offshore wind, UK electricity networks and flexible thermal will create the technologies to support long-term energy security.”
John Moore, senior investment manager at RBC Brewin Dolphin, said: “SSE has delivered another good set of results and has further outlined its plans to invest meaningfully in the future of the UK’s energy network.
“Given the macro-economic and political environment, it is prudent to continue emphasising the latter and the role SSE plays in delivering clean energy transition which is very much the narrative that will take the company forward.
“The shares are more or less flat on a year ago, recovering from the recent dip caused by the threat of a windfall tax on excess profits. But, SSE has seldom been more relevant to the UK’s direction of travel, backed by a solid balance sheet, investment programme, and a generous dividend for investors.”