SSE (LON:SSE) shares climbed 2.3% on Wednesday morning after the utility said adjusted earnings are expected to fall in the current financial year, even as it reported solid operational performance across its core businesses.
The company forecast adjusted earnings per share of between 144p and 152p for the year to March, down from 160.9p a year earlier. RBC Capital Markets noted the mid-point of the range, 148p, sits slightly below the Bloomberg consensus forecast of 149.9p.
In a trading update, SSE said operating profit expectations across its business units remain unchanged. Investment in its regulated networks business rose 64% compared with the first nine months of the previous financial year, as delivery of its strategy accelerated.
Generation output from SSE Renewables over the first nine months of the financial year was 7% higher year on year, supported by increased capacity from its construction programme, despite mixed weather conditions.
The update follows the launch of SSE’s £33 billion five-year investment plan, aimed at upgrading the UK’s electricity networks and expanding its renewables portfolio.
Chief financial officer Barry O’Regan said recent steps by government and regulators, including progress on transmission pricing and offshore wind auctions, underline the value of SSE’s integrated business model and support long-term delivery.