SSE points to sharp drop in half-year earnings
Perth-based energy company SSE Plc said it expects first-half profits to fall by up to a third, but is guiding to growth over the full year with the majority of annual earnings being delivered in the second half.
In a half-year trading update on Thursday, the company said it expects to report adjusted earnings per share of between 33p and 37p for the six months to 30 September, down from 49.8p reported the year before but "in line with usual seasonal averages".
However, the the full financial year to 31 March, adjusted EPS guidance remains 175p to 200p, comfortably ahead of the 160.9p earned the year before.
Delivery in the networks side of the business continues to accelerate, with adjusted investments expected to be up 60% over last year at £1.1bn in the first half after three large transmission projects received green lights.
In renewables, strong operational availability over the summer was offset by unfavourable weather conditions in April and May, with first-half output expected to be around 2% lower than last year.
Total capital expenditure and investment is expected to be around £1.5bn for the first half, with adjusted net debt and hybrid capital expected to be around £11.5bn.
Shares were down nearly 4% at 1,699.5p after the update on Thursday morning.
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