20 July 2023
If you are covering SSE plc’s Q1 trading statement, please see comment below from Tom Gilbey, equity research analyst at Quilter Cheviot:
“SSE’s trading statement today reported weak renewables output, following exceptionally dry and still weather patterns across the UK and Ireland. In total, the shortfall represents 5% of the annual forecast total output. However, the company has reiterated its guidance for full year adjusted earnings per share of more than 150p.
“SSE seems to be on track with its major projects, with the 114th and final Vestas turbine was installed at Seagreen offshore wind farm in June, and around 90 of the turbines are now commissioned. And, positively, first power is expected from its Dogger Bank A offshore win farm in the coming weeks and SSE continues to develop options that could see it invest up to £40bn over the next decade.
“While we like the fundamental drivers of SSE which offers exposure to the networks and renewables, we prefer National Grid due to its more defensive characteristics.”
