Water cascades over the SSE Hydro Dam in a controlled release, in Pitlochry, Scotland, Britain October 8, 2023. REUTERS
April 2 (Reuters) – British utility SSE on Thursday raised its annual earnings forecast by lifting the lower end of its guided range, supported by increased renewable generation output and network investments.
The profit upgrade comes as energy and fuel prices rise amid conflict in the Middle East, spurring the UK government to weigh measures to protect households from higher costs, and as global renewable power output and demand rise.
Output from SSE’s renewable division is expected to rise 10% to 14.5 terawatt hours in the fiscal year 2025/26, helped by increasing capacity from its construction programme, while its regulated networks businesses are seen delivering around a 60% increase in capital investment year-on-year.
The electricity provider launched a 33 billion pound ($43.59 billion) five-year investment plan in November to boost its renewables portfolio, highlighting the wider need to modernise Britain’s ageing grid amid growing power demand from the electric vehicle and artificial intelligence sectors.
SSE now expects adjusted earnings per share of between 147 and 152 pence for the year ending March 31, with capital investment reaching around 3.5 billion pounds for the year. The company had previously forecast adjusted earnings per share to be between 144 and 152 pence per share.
SSE said it continues to monitor developments in the Middle East but has seen no immediate impact on its performance given the resilience of its business mix.
Reporting by Raechel Thankam Job in Bengaluru; Editing by Ronojoy Mazumdar and Mrigank Dhaniwala
