SSE (LSE: SSE) reaffirmed its full-year earnings guidance on Thursday, albeit within a “narrower” range, causing its share price to slip 1.9% by mid-morning.
The company said renewable energy output was around 15% below target in its fiscal third quarter due to unfavourable weather conditions and temporary plant outages.
Its Thermal division continues to face headwinds from lower spark spreads and market volatility compared to last year but still expects to deliver adjusted operating profit above £750 million. However, this would be a 27% decrease from £1.03 billion in financial year 2023.
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SSE says it remains on track to meet its £2.5 billion capital expenditure target thanks to “the strength of our balanced business mix,” said CFO Barry O’Regan. The company also reconfirmed its earnings per share guidance of more than 150 pence for the full year.
SSE continues to make progress on its £18 billion net-zero acceleration program to transform Britain’s energy system, a strategy Mr O’Regan said “remains unchanged and will deliver sustainable value for shareholders and society.” The company warned its final full-year results remain subject to plant availability, market conditions and normal weather.
The stock is down 11.7% year to date.