21st May 2025 08:50
(Alliance News) - SSE PLC on Wednesday reported a decline in profit during its most recent financial year, as wider market uncertainty weighs on its top line.
The Perth, Scotland-based electricity generator said pretax profit for the year that ended March 31 was GBP1.85 billion, falling 26% from GBP2.50 billion the year before.
Revenue declined 3.2% to GBP10.13 billion from GBP10.46 billion, while cost of sales increased 2.6% to GBP6.27 billion from GBP6.11 billion a year prior. Operating costs were up 11% to GBP2.05 billion from GBP1.85 billion.
The earnings decline was partly driven by "wider economic turbulence and the expected normalisation of commodity price volatility," SSE explained.
SSE declared a final dividend of 43.0 pence per share, bringing the total dividend for the year to 64.2p, up 7.0% from 60.0p the year before. The company guides for an interim dividend of 21.4p in financial 2026.
"SSE continues to prove the benefits of a portfolio that is built to withstand risk and uncertainty and a strategy that is focused on creating sustainable value. We have met our financial goals for the year and evolved our investment plans to reflect the changing world around us - leaning into the opportunities presented in networks and redoubling our capital discipline across our energy businesses," said Chief Executive Officer Alistair Phillips-Davies.
"We are particularly well placed to contribute to future energy systems in our home markets built on renewables, networks and flexibility. This opportunity, alongside our balance sheet strength and the increased proportion of index-linked revenue we anticipate, gives us every confidence in our FY27 target of 175-200p earnings per share and sustainable growth to 2030 and beyond."
Looking ahead, SSE reduced its five-year investment expectations by GBP3 billion to around GBP17.5 billion, "reflecting financial discipline in a changing macro environment across the energy businesses and consent phasing in networks".
Within its SSEN Transmission arm, adjusted operating profit for financial 2026 is expected 1.5 times higher than in financial 2025. Adjusted operating profit in its SSEN Distribution unit, however, is anticipated at less than half of its financial 2025 level, as SSE expects allowed revenue to fall around GBP400 million with the reversal of one-off inflationary cost recoveries.
SSE Renewables is expected to deliver higher adjusted operating profit on-year, and SSE Thermal & Gas Storage profit is forecast to be broadly flat. Profit for its Energy Customer Solutions business is expected lower as income from legacy wind farm contracts start to unwind.
Shares in SSE were up 1.4% at 1,823.00 pence each in London on Wednesday morning.
By Emily Parsons, Alliance News reporter
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