SSE has reported an operating profit of almost £2bn in its preliminary results for the first quarter of 2025, a drop of 25% on the figure recorded at the same time last year.
The figure includes exceptional charges totalling £309.7m. The majority of this charge relates to a £249.5m non-cash impairment of the Group’s investment in the Southern Europe Renewables pipeline.
This impairment reflects sector-wide delays to permitting and grid connections, which has meant the build-out has been slower than originally planned, SSE said.
The directors also reported that five-year investment expectations will be reduced by £3bn to around £17.5bn, reflecting financial discipline in a changing macro environment across the energy businesses and consent phasing in networks.
Around 60% expected to be invested in regulated Networks, with approximating 30% allocated to Renewables.
The board also reported that construction continues on all three phases of Dogger Bank offshore wind farm is on track with Phase A completion expected in the second half of 2025.
SSE also enjoyed success in the UK’s sixth Contract for Difference auction (AR6) with 130MW Cloiche onshore wind farm and in Ireland’s fourth Renewable Electricity Support Scheme auction (RESS 4) with 60MW Drumnahough onshore wind farm Joint Venture.
Alistair Phillips-Davies (pictured), SSE chief executive, said:”SSE continues to prove the benefits of a portfolio that is built to withstand risk and uncertainty and a strategy that is focused on creating sustainable value.
“We have met our financial goals for the year and evolved our investment plans to reflect the changing world around us – leaning into the opportunities presented in networks and redoubling our capital discipline across our energy businesses.
“We are particularly well placed to contribute to future energy systems in our home markets built on renewables, networks and flexibility.
“This opportunity, alongside our balance sheet strength and the increased proportion of index-linked revenue we anticipate, gives us every confidence in our FY27 target of 175-200p earnings per share and sustainable growth to 2030 and beyond.”