SSE's half-year renewable generation below expectations due to weather

UK utility SSE plc (LON:SSE) experienced lower-than-expected renewable output in the past months, while gas storage and flexible thermal continued to perform well in volatile markets.

The company today updated the market ahead of releasing results for the six months through September on November 16.

It said lower-than-projected renewable generation was due to weather and caused total renewable output from the start of its financial year to September 22 to be around 13% below plan.

SSE says its balanced business mix, including electricity networks, renewables and flexible generation and storage, allows it to steer through volatile market conditions. It expects to report half-year adjusted earnings per share of at least GBP 0.40 (USD 0.43/EUR 0.45) and confirmed its full-year adjusted earnings per share forecast of at least GBP 1.20, with updated guidance to be provided as the winter period progresses.

"Our balanced business mix has ensured a strong performance to date, however in such highly volatile market conditions, financial performance for the full year will be significantly influenced by plant availability, weather and commodity price movements,” cautioned finance director Gregor Alexander.

SSE says it is on track to report an annual capex of more than GBP 2.5 billion as it executes its GBP-12.5-billion Net Zero Acceleration Programme by 2026.

Alexander also said the company is "committed to reinvesting any additional profits derived from market variability directly back into energy infrastructure that will prevent a repeat of the crisis in the long-term."

(GBP 1 = USD 1.079/EUR 1.119)

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