SSE PLC on Wednesday reported an interim profit as cost of sales dramatically decreased.
The Perth, Scotland-based energy firm said in the six months to September 30, it swung to a pretax profit of £573.3 million from a loss of £511.0 million a year prior.
The company’s adjusted pretax profit climbed 1.0% to £565.2 million from £559.4 million. The adjusted figures exclude discontinued operations relating to the sale of the gas production business.
SSE noted ‘major progress’ on its flagship projects, including first power at Dogger Bank and full power at Seagreen offshore wind farms in the North Sea. It also secured the planning and supply chain for Eastern Green Link 2 subsea transmission cable, which will be built between Aberdeenshire and North Yorkshire.
Revenue fell 15% to £4.79 billion from £5.63 billion.
Notably, cost of sales came in 46% lower at £3.29 billion compared to £6.13 billion, more than offsetting a rise in operating costs, which more than doubled to £847.9 million from £396.0 million.
The company declared an interim dividend of 20.0 pence per share, down 31% from 29.0p a year prior.
SSE targets a full-year dividend of 60.0p per share for the current financial year ending on March 31, lowered by 38% from 96.7p from financial 2023.
Further, it confirmed its guidance for expected earnings growth. It expects to deliver adjusted earnings per share of over 150p, down from 166.0p in financial 2023, and will provide updated guidance later in the financial year.
Chief Executive Officer Alistair Phillips-Davies said: ‘With an enduring broad political consensus behind the need to build the electricity infrastructure required for net zero, a supportive power price outlook, balance sheet strength underpinned by world-class assets and unrivalled optionality across the clean energy value chain, we have increased confidence in our earnings forecasts not only for this year, but out to 2026/27.’
SSE shares rose 2.5% to 1,754.00 pence each on Wednesday morning in London.
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