SSE plc Shares Rise Following Positive Trading Update

Shares of SSE plc (LON:SSE) (OTC:SSEZY) rose on Thursday following a positive trading update ahead of its half-year results.

At 7:10 am (1110 GMT), SSE was trading 2% higher at £1,911.

The UK-based energy company reported better-than-expected performance in several key areas, particularly its renewables division, and maintained its full-year outlook.

SSE expects to report adjusted earnings per share of over 45 pence for the first half of its financial year ending September 30. This reflects the seasonal nature of its operations, with the company typically generating the majority of its annual earnings in the latter half of the year.

The company also reported a renewable energy output reaching around 5.3TWh, marking a 44% increase compared to the same period last year.

The boost in output was due to favorable weather conditions and increased capacity from its expanding portfolio of wind and solar assets. The Viking onshore wind farm and the Shetland HVDC link, both completed during the period, played key roles in delivering this growth.

Despite a stable market environment that tempered earnings from its flexible thermal and gas storage operations in the first half, SSE continues to expect full-year adjusted operating profits from these assets of at least £200m under current market conditions.

SSE also reported progress in its broader NZAP Plus investment programme, including the completion of the Slough Multifuel power station and securing government contracts for an additional 190MW of renewable capacity.

The company noted that while completion of the Dogger Bank A offshore wind farm is now expected in the second half of calendar year 2025, project returns are not anticipated to be materially impacted.

On the financing side, SSE’s transmission subsidiary issued an €850 million green bond in August 2024, with a fixed all-in funding cost of 4.95%. The company’s adjusted net debt at the end of September is expected to be around £10 billion.