SE recurs to its original forecast, embracing the newly found clarity following the dispute over zonal pricing
Scottish renewable power giant SSE has reaffirmed its annual guidance for adjusted earnings per share, despite a decrease in quarterly renewables output. The decline, which was primarily due to unfavourable weather conditions in April and May, has not deterred the company from maintaining its positive financial outlook.
Alistair Philips-Davies, SSE's outgoing chief executive, leads the company's transformation into a national clean energy champion. As he prepares to sit through his final AGM today, he remains proud of all that has been achieved over his 12 years at the helm.
In the first quarter ending June 30, SSE's Networks segment showed strong performance, while Renewables generated 2.5 million gigawatts compared to 2.6 million gigawatts a year earlier, causing the drop in renewables output. However, SSE expects SSE Renewables to deliver higher adjusted operating profit year-on-year, and SSE Thermal & Gas Storage profits are forecasted to be largely flat.
Adjusted operating profits reported for 2025 are GBP 1.04 billion for SSE Renewables, GBP 322.5 million for SSEN Transmission, and GBP 736 million for SSEN Distribution, indicating solid profitability across segments. The company has also announced plans to build a new EUR300 million renewable power station in Ireland, signaling continued investment in growth areas.
For financial year 2026, SSE has reaffirmed its targets set out in May, showing confidence in its strategic outlook despite short-term dips in renewable output. Notably, SSEN Transmission aims for adjusted operating profit 1.5 times higher than in 2025, although SSEN Distribution expects some profit decline due to prior inflationary cost recoveries reversals.
Barry O'Regan, SSE's chief financial officer, states that SSE continues to deliver thanks to its resilient and balanced business and disciplined approach to capital investment. The long-term financial outlook for SSE remains robust, backed by strong segment profits and ongoing investment in renewables.
SSE welcomes the decision to keep a national pricing system for wholesale electricity, and the company aligns itself with an energy transition that is creating value for both shareholders and society. Alistair Philips-Davies has full confidence that SSE will continue to thrive under its new leadership, with Martin set to take over as the new chief executive.
While SSE is unlikely to meet its 2030 renewables goal, the recent drop in renewables output is seen as temporary and weather-related rather than indicative of a fundamental performance weakness. This reassures investors of sustainable earnings growth and the company’s resilience in fluctuating conditions.
The transformation of SSE into a national clean energy champion, under the leadership of Alistair Philips-Davies, extends across various sectors, including the energy, finance, and business industries. Despite a temporary drop in renewables output due to unfavorable weather conditions, SSE anticipates higher adjusted operating profit for SSE Renewables and expects SSEN Thermal & Gas Storage profits to remain largely flat, demonstrating resilience and adaptability in the transport sector.
