SSE net-zero disposal plan 'on track'

Thu, 22nd Jul 2021

SSE has said it has made 'good progress' on disposing of non-core assets and businesses that are not a good fit with its net zero strategy. It expects to realise more than £2 billion from the sales, part of which includes the disposal of SSE's Contracting business to Aurelius which was first announced in April and completed at the end of June. SSE has initiated a sale process for its stake in SGN, targeting an agreed sale by the end of the calendar year. On 1 July, SSEN Distribution published its stakeholder-led draft business plan for 2023 to 2028, setting out how it will deliver improvements for customers and accelerate investment in its networks to 'power communities to net zero' over the course of the RIIO-ED2 price control period. The plan includes £4.1bn of investment, representing an increase of around 35% compared to an equivalent period in ED1, and would see SSEN Distribution's regulated asset value increase to over £6bn from around £4bn at the end of the current price control. The company said it expects that capital expenditure and investment will total around £2bn in 2021/22, net of project finance development expenditure refunds. Looking further ahead, SSE is seeking to add to its pipeline in renewables and has submitted bids, with its partners Marubeni and CIP, for a number of sites through the ScotWind seabed leasing process. Gregor Alexander, SSE's finance director, said: 'We have delivered on our purpose through the coronavirus pandemic and are continuing to progress growth opportunities and options arising from our net zero strategy. 'We have an enviable offshore wind pipeline which we are seeking to expand and diversify, options to develop new thermal and pumped storage hydro technologies that will be vitally important in the transition to net zero, and we see significant RAV growth potential in our regulated electricity businesses. 'This represents an exciting future for SSE, and we look forward to updating the market on our capital expenditure and investment plans at our interim results in November. In the meantime, our focus remains on strategic delivery across the group, in doing so creating sustainable value for shareholders and society.' Story provided by StockMarketWire.com

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