UK energy company SSE Plc (LON:SSE) is stepping up its investment plans, saying today it will spend GBP 18 billion ( USD 22.3bn/EUR 20.7bn) on low-carbon infrastructure out to 2026/27 and potentially up to GBP 40 billion over the decade to 2031/32.
Announcing results for the year till the end of March, the company revealed Net Zero Acceleration Programme Plus, an upgrade of its Net Zero Acceleration Programme that was announced in November 2021.
The updated investment plan, which represents an increase of 40% on the previous programme, comes on the back of “strong financial performance in the year, the resilience of SSE’s balanced business mix and underlying finances, the pace of strategic delivery and the wealth of opportunities coming our way,” explained chief executive Alistair Phillips-Davies.
The investment is expected to provide about 5 GW of net renewables capacity additions.
The way the capital will be allocated has been adjusted with electricity networks to get an increased share of 50%, renewable electricity generation to receive unchanged 40%, and 10% to be channeled to low-carbon flexible thermal generation and other businesses.
Some of the investment increase under the new plan reflects supply chain cost rises.
For the 12-month period, SSE booked adjusted profit after tax of GBP 1.8 billion, with adjusted earnings per share jumping 75% year-on-year to GBP 1.66. The company also reported record investment of GBP 2.8 billion for the year.
Adjusted operating profit at the renewables segment climbed to GBP 580 million from GBP 568.1 million in the previous year, while profits surged at SSE Thermal and Gas Storage. Total adjusted operating profit expanded to GBP 2.53 billion from GBP 1.16 billion.
(GBP 1 = USD 1.239/EUR 1.150)
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