Wind investment

SSE focused on delivering ‘essential’ energy projects

Dogger Bank
Dogger Bank is producing first power

Energy company SSE has reported standstill profits following massive investment on major wind farms.

The Perth-based company said pre-tax profit for the year to the end of March came in at £2.17 billion against £2.18bn in the previous 12 months. It posted an adjusted operating profit of £2.4bn (-4%).

The company is investing £2.5bn in delivering critical energy infrastructure including Seagreen, the world’s deepest fixed bottom offshore wind farm, and has announced first power at Dogger Bank, the world’s largest wind farm.

Final commissioning is under way on both Viking onshore wind farm and Shetland subsea transmission link, connecting the islands to the GB grid for the first time;

Construction is starting on c.500km Eastern Green Link 2 subsea transmission cable, the largest in the UK.

The board will recommend a final dividend of 40p for payment on 19 September making the full year dividend 60p per share in line with growth aligned dividend plan.

Alistair Phillips-Davies, chief executive, said: “This is a strong performance where we have delivered essential energy infrastructure, benefited from the resilience of our business model, and made disciplined investment in our excellent growth opportunities.

“Renewables, flexible power and electricity networks are the building blocks of a cleaner and more secure energy system. With world-class assets and capabilities, and enhanced visibility of growth in transmission, SSE is ideally placed to benefit from this structural trend, creating value for shareholders and society.

“Our immediate focus is on delivering our financial and operational growth targets out to 2026/27 and we are on track to do this, converting our premium organic project pipeline into high-quality sustainable earnings.”

John Moore, senior investment manager at RBC Brewin Dolphin, said: “SSE has delivered a steady set of results, despite some challenges in the past year. Unfavourable weather has had a temporary impact and the company still managed to deliver towards the upper end of previous guidance.

“SSE is in a sweet spot in terms of the energy transition and the direction of policy, and the company is making significant investments and becoming an increasingly important part of the UK’s infrastructure.

“At the same time, there is a good balance with shareholder returns, which could make it an attractive option for income-minded investors.”

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