Shares fall as SSE confirms green investment boost
08:39, 17 November 2021
Energy producer SSE has announced a 30% surge in pre-tax profits along with a new Net Zero Acceleration Programme (NZAP). Pre-tax profits came in at £174.2m ($234.2m) compared to almost £133.9m for the same period last year.
Adjusted earnings per share rise by 44%
SSE’s new renewable investment NZAP will see an extra £1bn of capital expenditures deployed each year. SSE was also keen to highlight its £12.5bn strategic capital investment plan that will be rolled out over the next five years along with 2031 targets that are aligned with net-zero and 1.5-degrees targets.
The energy multinational says profits were helped by higher volumes and revenue allowances from its regulated network. Renewable power output was cut 25% lower due to unfavourable weather conditions.
Adjusted earnings per shares climbed by 44% to 10.5p, which was just above SSE’s predicted range of between 7.5p and 10p. The statement said that this reflected “improved performance across a number of businesses in the second half of September”.
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Shares fall in early trading
SSE’s adjusted net debt and hybrid capital stand at £9.6bn as a result of increased investment and capital expenditure. The group said that it remains committed to its five-year dividend plan, which will run until March 2023, "and expects to recommend a full-year dividend of 81 pence plus RPI inflation in line with that plan."
SSE’s stock price has risen by 15% over the last year but its shares fell more than 6.4% to £15.43 in early trading in London. By 08:30 GMT (UTC+0), the share price’s downward curve was flattening with shares selling at around £15.85.
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