SSE Renewables has reported a 11% drop in adjusted operating profit for the six months to 30 September 2022, partially due to delays in the 1075MW Seagreen offshore wind project (pictured), now slated for completion in summer 2023.
Adjusted operating profit stood at £22.5m (€25.6m), with increased volumes across technologies and strong prices captured by hydro and pumped storage offset by the need to buy back hedges at very high prices, according to the board.
They added that, having experienced exceptionally still and dry weather in the prior year, volumes increased 0.8TWh or 28% in the current year but were still 0.5TWh or 13% behind planned levels due to unfavourable weather and delays to the Seagreen construction project.
The increase in hedge buyback costs was largely driven by very high power prices and included £57m of costs related to delay of the Seagreen construction project.
Reported operating loss for the six-month period was £29.3m compared to a loss of £33.6m in the prior period.
In addition to the factors noted above, the prior period saw an exceptional tax charge of £24m recognised in joint ventures due to the substantive enactment of the UK Corporation Tax rate change impacting deferred tax balances, with no such exceptional item appearing in the current year.
This was partially offset by an increase in the share of joint venture interest and tax of minus £16.8m, whilst depreciation on fair value uplifts remained constant at £9.4m.