🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

SSE shares rise on strong half-year results

Published 11/13/2024, 04:36 PM
© Reuters
SSE
-

Investing.com -- Shares of SSE plc (LON:SSE) rose on Wednesday after it delivered strong half-year results, reporting adjusted EPS of 49.8p, surpassing its earlier guidance of at least 45p. 

SSE has also reaffirmed its full-year EPS target and is maintaining guidance for adjusted EPS between 175-200p by FY27.  

The energy giant remains on track with its £20 billion clean energy investment program, having spent £1.3 billion in capex so far this fiscal year. 

Net debt stands at £9.8 billion, with the company projecting capital expenditure of around £3 billion in FY25. Despite the high spending, SSE expects its net debt-to-EBITDA ratio to stay at the lower end of the 3.5-4.0x range.  

The company’s Networks division was a key driver of growth, with EBIT rising 50% to £504 million. SSEN Distribution contributed £346.3 million, a 188% surge, as inflation adjustments boosted revenues. 

Meanwhile, the Transmission segment faced a 27% drop in EBIT due to the impact of capital allowances.  

In Renewables, SSE benefited from increased operating capacity and favorable wind conditions in Scotland, which were about 14% stronger than in the previous year. This lifted EBIT by 286% to £335.6 million.  

However, the Thermal Energy segment reported an EBIT loss of £44 million, reflecting limited opportunities for flexible thermal and gas operations in a more stable market environment. 

Seasonal factors also weighed on gas storage. However, the company reiterated its full-year adjusted operating profit forecast of £200 million for these assets.  

Separately, CEO Alistair Phillips-Davies will retire in 2025. He plans to remain in his role until a successor is appointed, ensuring a smooth transition.

“The move to ensure a smooth leadership transition should be well received, whilst we expect that gas prices may be a focus of the call alongside any further details that can be provided on offshore project timings/costs,” said analysts at RBC Capital Markets in a note.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.