SSE Shares Rise Following Trading Update

Shares of SSE plc experienced an increase on Thursday following a favorable trading update preceding its half-year results.

At 7:10 am, SSE’s stock was trading 2% higher at £1,911. The UK-based energy company reported stronger-than-expected performance in several key areas, especially its renewables division, and confirmed its full-year outlook.

SSE anticipates reporting adjusted earnings per share of over 45 pence for the first half of its financial year ending September 30. This figure reflects the seasonal nature of its operations, with the majority of annual earnings typically generated in the latter half of the year.

The company also noted that its renewable energy output reached approximately 5.3 terawatt-hours, representing a 44% increase compared to the same period last year. This rise in output was attributed to favorable weather conditions and enhanced capacity from its expanding portfolio of wind and solar assets.

The Viking onshore wind farm and the Shetland HVDC link, both completed during this period, contributed significantly to this growth.

While a stable market environment affected earnings from its flexible thermal and gas storage operations in the first half, SSE expects full-year adjusted operating profits from these assets to be at least £200 million under current market conditions.

The company also reported advancements in its broader NZAP Plus investment program, which includes the completion of the Slough Multifuel power station and securing government contracts for an additional 190 megawatts of renewable capacity.

SSE stated that although the completion of the Dogger Bank A offshore wind farm is now projected for the second half of calendar year 2025, project returns are not expected to be significantly impacted.

On the financing front, SSE’s transmission subsidiary issued an €850 million green bond in August 2024, with a total fixed funding cost of 4.95%. The company’s adjusted net debt is projected to be around £10 billion by the end of September.