SSE has upgraded its expected adjusted earnings per share for the 2021-2022 financial year, thanks to improved output from renewables and good performance from its flexible thermal and hydro plants.
The company said that since its third quarter trading statement weather conditions have meant that the shortfall in output from renewable sources has decreased from 19% below plan for the nine months to 31 December 2021 to around 12% below plan as of 22 March.
Therefore, SSE is updating the market that it expects full-year 2021-2022 adjusted earnings per share to be in a range of between £0.92 and £0.97 compared with previous guidance of at least £0.90.
SSE said it also remains on track to report full-year 2021-2022 Capex in excess of £2bn as it continues to execute its strategic £12.5bn Net Zero Acceleration Programme, launched in November.
The completion of the disposal of its investment in Scotia Gas Networks (SGN) on 22 March for cash proceeds of £1.3bn, adjusted net debt is expected to be below £9bn at 31 March 2022.
SSE has today also published its Net Zero Transition Plan, which provides the company’s stakeholders with clarity around actions SSE intends to take to achieve a net zero ambition for its scope 1 and scope 2 emissions by 2040, subject to security of supply requirements, and for the remaining scope 3 emissions, by 2050.
Future progress against this Net Zero Transition Plan will be reported each year and summarised in a report which will be put to shareholders at SSE’s AGM each year.
SSE finance director Gregor Alexander said: “SSE’s integrated and balanced business model has performed well in turbulent market conditions, with expected financial performance now broadly aligning with our internal projections at the beginning of the year.
“At the same time, we have made further progress with the SGN disposal and we have a number of attractive options to support accelerated electrification of the economy.
“Our significant investment programme will make a huge contribution towards both net zero and energy security whilst publication of our Net Zero Transition Plan gives stakeholders more detail on how we will decarbonise our businesses.”
SSE is due to publish its financial results for the year ending 31 March 2022 on 25 May.