NOTIFICATION OF CLOSED PERIOD

RNS Number : 3095G

SSE PLC

29 March 2022

 

SSE plc

notification of closed period

29 march 2022

· 2021/22 adjusted earnings per share expected to be in the range of 92p to 97p

· Published Net Zero Transition Plan detailing actions to achieve SSE's net zero ambition

· Received £1,286m proceeds on completion of disposal of investment in Scotia Gas Networks

SSE plc is due to publish its financial results for the year ending 31 March 2022 on 25 May 2022.

Financial outlook

Since SSE's Q3 Trading Statement, weather conditions have meant that the shortfall in output from renewable sources has decreased from 19% below plan for the nine months to 31 December 2021, to around 12% below plan as at 22 March. At the same time, the good performance from flexible thermal and hydro plant has continued in volatile market conditions, demonstrating its value to the energy system.

In light of this, SSE is updating the market that it expects full-year 2021/22 adjusted earnings per share to be in a range of between 92 and 97 pence compared to previous guidance of at least 90 pence. SSE still intends to recommend a full-year dividend of 81p per share plus RPI for 2021/22 and continues to target an RPI linked dividend in 2022/23, followed by a rebase to 60p in 2023/24 and at least 5% increases in 2024/25 and 2025/26.

SSE also remains on track to report full-year 2021/22 capex in excess of £2bn as it continues to execute its strategic £12.5bn Net Zero Acceleration Programme, launched in November, at pace. With completion of the disposal of its investment in Scotia Gas Networks (SGN) on 22 March for cash proceeds of £1.3bn, adjusted net debt is expected to be below £9bn at 31 March 2022.

SSE's Net Zero Transition Plan

SSE has today published its Net Zero Transition Plan, following on from strong shareholder support for SSE's proposal at its 2021 Annual General Meeting (AGM). The Plan provides SSE's stakeholders with clarity around actions SSE intends to take to achieve a net zero ambition for its scope 1 and scope 2 emissions by 2040 (subject to security of supply requirements) and for the remaining scope 3 emissions, by 2050. Future progress against this Net Zero Transition Plan will be reported annually and summarised in a report which will be put to shareholders at SSE's AGM each year.

Market Volatility

In response to the devastating humanitarian cost of the Russian invasion of Ukraine, SSE has donated £1m to the Disasters Emergency Committee. SSE does not have any energy supply contracts with Russian counterparties, and we are ceasing trading activities with these entities.

The war has had significant consequences for energy markets and policy, contributing to historically high and volatile prices. However, SSE has so far been served well by its prudent hedging approach and has successfully managed any increasing credit and collateral requirements. The impact of a prolonged or escalated conflict on SSE's businesses is difficult to predict. In any event, SSE benefits from the breadth of its businesses across the energy value chain which balances risk in periods of volatility and its £12.5bn net zero aligned investment programme is helping to reduce system reliance on imported gas.

Finance Director Gregor Alexander said:

"SSE's integrated and balanced business model has performed well in turbulent market conditions, with expected financial performance now broadly aligning with our internal projections at the beginning of the year. At the same time, we have made further progress with the SGN disposal and we have a number of attractive options to support accelerated electrification of the economy.

"Our significant investment programme will make a huge contribution towards both net zero and energy security whilst publication of our Net Zero Transition Plan gives stakeholders more detail on how we will decarbonise our businesses."

SSE's Full-year Results presentation and Q&A session, to be held on 25 May 2022, will be conducted virtually.

Enquiries
Investors	SSE Investor Relations	[e-mail]	Sally Fairbairn, Michael Livingston	[phone]
Media	SSE Media	[e-mail]	Sam Peacock, Glenn Barber	[phone]
	MHP Communications		Oliver Hughes	[phone]
			Simon Hockridge	[phone]

 

END

 

 

MSCBCGDXSXDDGDI