SSE trims earnings guidance as 'variable weather' weighs on renewables growth

SSE trims earnings guidance as ‘variable weather’ weighs on renewables growth

Published on: April 2, 2025

By MIKE SHEEN

Updated: 09:52 BST, 2 April 2025

SSE trimmed full-year earnings guidance on Wednesday as ‘variable weather’ conditions continue to impact the group’s renewable energy output.

Wind output has been bolstered by investment in capacity, but cold spells and stormy weather have weighed on SSE’s distribution network.

The power generator operator expects to post renewables output of around 13 terawatt-hours for the 12 months to 28 March, 17 per cent higher than the prior year.

SSE, which named Martin Pibworth as its chief executive last month, said this reflects ‘capacity additions’ but also ‘variable weather conditions which have continued in the final months of the year’.

The group also narrowed earnings guidance last month as it said weather conditions had limited renewables output growth to 26 per cent for the nine months to 31 December.

It now forecasts annual adjusted earnings per share of 155p to 160p, down from February guidance of 154p to 163p.

The power generator operator expects to post renewables output of around 13 terawatt-hours for the 12 months to 28 March

But SSE shares were up 0.8 per cent at 1,593p in early trading, as it assured investors its regulated networks business continued to deliver ‘strong’ operational performance and group profit expectations remains unchanged.

Shares remain nearly one-fifth below their September 2024 peak, reflecting a general reduction in energy generation pricing and assumptions on the returns that can be made on wind assets.

SSE is investing around £3billion this year ‘with a focus on value and efficiency’, It said.

The group is targeting adjusted earnings per share of 175p to 200p for fiscal year 2026/27.

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SSE trims earnings guidance as ‘variable weather’ weighs on renewables growth

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SSE trims earnings guidance as ‘variable weather’ weighs on renewables growth