08 February 2024
If you are covering SSE’s Q3 statement, please see the following comment from Tom Gilbey, equity research analyst at Quilter Cheviot:
“SSE has reaffirmed its confidence in its financial performance and growth prospects, despite facing some headwinds in its renewable and thermal businesses.
“The company has maintained its EPS guidance for FY24 and expects to invest £2.5bn in its core assets and projects. SSE has highlighted the progress it has made in its transmission and generation portfolio, especially in the offshore wind sector, where it has a stake in the world's largest wind farm, Dogger Bank. However, turbine installation has been impacted on Dogger Bank A due to challenging weather, vessel availability and supply chain issues. Full operations might not be achieved until 2025 but don’t expect this to materially change returns.
“Pleasingly, the company has welcomed the supportive policy environment in the UK, which could enable it to pursue more opportunities in emerging technologies such as CCS, hydrogen and energy storage.
“SSE's valuation reflects its attractive dividend yield and its integrated business model, which provides resilience and diversification. We believe SSE is well-positioned to capitalise on the energy transition and deliver long-term value for its stakeholders.”
