22 May 2024
If you are covering SSE’s latest results, please see the following commentary from Tom Gilbey, equity research analyst at Quilter Cheviot:
"SSE’s financial results for 2024 were slightly better than expected. Although it did not provide specific guidance for 2025, it did reiterate it was on track for its 2027 guidance. Key highlights include an Earning per Share (EPS) for 2024 of 158.5p which is a 5% decrease compared to last year but still 3% better than expected. Adjusted operating profit decreased by 4% to £2.5billion and the dividend for 2024 was 60p.
SSE invested £2.5 billion in critical national energy infrastructure over the year, including starting construction on the Eastern Green Link 2 subsea transmission cable, reaching full power at the Seagreen offshore windfarm and progressing the Dogger Bank offshore wind project, although this project is slightly delayed due to weather and vessel availability. Looking ahead, the company expects transmission to be lower due to changes in accounting, distribution to significantly increase driven by inflationary adjustments in tariffs, renewables to see a substantial year on year increase, and thermal and gas storage to be significantly lower due to reduced power prices.
"SSE reaffirmed their target of achieving an EPS of 175p by 2027, with the transmission segment expected to contribute more towards profit and the contribution from renewables slightly less. SSE’s strategic integrated business model, leading growth in transmission and distribution and strong potential for renewable energy growth puts it in a good position for overall growth."
For more information, please contact Alex Berry on + 44 (0)7741151931
