SSE Sees Renewables Output Increase, Profit Outlook Cautious
(Reuters) -British utility SSE reported on Wednesday that its renewables output increased in the nine months ending Dec. 31, helped by capacity growth, although the power generator and network operator issued a cautious profit outlook.
SSE forecast adjusted earnings of 154-163 pence per share for the year ending March 31, or 158.5 at the midpoint, compared with analysts' estimate of 163.1 pence, according to a poll of six analysts compiled by LSEG.
Jefferies analysts said the forecast was in line with their consensus.
The United Kingdom was hit by a cold spell in the end of 2024 and low wind speeds, but the renewables division at SSE, whose key focus is on the UK and Ireland, still posted 26% output growth for the nine months to Dec. 31.
Record-breaking wind speeds from the recent Storm Eowyn that left several homes and businesses without power in Ireland, also posed challenges in the current quarter for SSE's grids, which the company said it overcame.
Britain also faced heavy snow, rain and flooding last month.
"We were able to provide a swift and effective response to Storm Eowyn, with our teams expertly managing widespread network disruption," finance chief Barry O'Regan said in a statement.
Its shares were up 0.6% at 1025 GMT. The FTSE-100 component did not provide any update on its search for a new chief executive ahead of Alistair Phillips-Davies' retirement this year.
SSE maintained its profit outlook of 175-200 pence per share for the year ending March 31, 2027, as it ramps-up investments to meet the UK's electricity and de-carbonisation goals.
In the last fiscal year, SSE reported a profit of 158.5 pence per share.
In December, SSE said its power network arm SSEN Transmission will invest at least 22 billion pounds ($27.50 billion) in grid infrastructure over a five-year period beginning in April 2026.
($1 = 0.8001 pounds)
(Reporting by Raechel Thankam Job and Pushkala Aripaka in Bengaluru; Editing by Sumana Nandy and Toby Chopra)
