SSE Share Price Rose 3.19% on Positive Six-Month Earnings Results

The SSE PLC (LON: SSE) share price rose 3.19% after releasing its interim results for the six months ended 30 September 2023. The company reported significant progress on its flagship projects, including producing the first power at its Dogger Bank and reaching full power at Seagreen offshore wind farms.

The multinational energy company has also secured the supply chain and planning for its Eastern Green Link 2 subsea transmission cable. These achievements underscore SSE's commitment to renewable energy development.

The company reported adjusted earnings per share of 37.0p, surpassing pre-close guidance. This performance reflects the seasonal nature of operations, with most annual earnings typically realised in the second half of SSE's financial year.

SSE maintains a robust balance sheet, with 91% of its adjusted debt carrying a fixed rate. Additionally, the company expects less than £1.5 billion of long-term debt refinancing over the next 24 months, ensuring financial stability and flexibility.

Safety remains a paramount concern for SSE. The company has implemented various initiatives to enhance safety, mainly as increased construction activity has led to a Total Recordable Injury Rate of 0.24, a slight increase from the previous rate of 0.15.

SSE reaffirms its guidance for full-year 2023/24, aiming for more than 150p in adjusted earnings per share. This reflects the company's confidence in its operational and financial performance.

SSE has upgraded its capital investment expectations to £20.5 billion for the five-year program. This adjustment is driven by improved visibility of regulated network spending and associated supply chain costs. Approximately 90% of the increased investment plan will be allocated to electricity networks and renewables.

Alistair Phillips-Davies, SSE’s Chief Executive, said: “Our performance in the first half of 2023/24 demonstrates SSE's well-balanced business mix and our ability to adapt and create value while maintaining capital discipline in a fast-evolving energy landscape. As visibility of growth options improves, we have upweighted our capex plans to meet the ambitions of the NZAP Plus plan. 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 share price. 

The SSE share price rose 3.19% to trade at 1770.3p from Tuesday’s closing price of 1715.5p.