SSE reiterates medium-term targets as FY earnings top guidance

(Sharecast News) - Utilities provider SSE reported a small decline in annual profits but adjusted earnings above the upper end of guidance, delivering an upbeat outlook following a record year for capital investment.

Adjusted pre-tax profits totalled �2.03bn over the 12 months to 31 March, down 6% over the year before, though adjusted earnings per share of 153.5p came in comfortably ahead of last month's guidance range of 147-152p.

The firm said it made a strong operational performance during the year, while a "resilient business mix" means it has seen no immediate impact from current macroeconomic volatility.

SSE held on to near and medium-term profit growth targets for FY27 and FY30, targeting adjusted earnings per share of 168-193p and 225-250p respectively.

The company also recommended a final dividend of 47.3p, taking the full-year dividend 7% higher to 68.7p.

Investment and capital expenditure totalled �3.58bn, up 23% year-on-year, with much of the spend focused on the SSEN Transmission business, which is responsible for the electricity transmission network in the north of Scotland. Total capex is expected to rise to over �5bn over FY27.

Chief executive Martin Pibworth said SSE's planned �33bn investment plan through to 2030 was "well under way".

"That investment is central to longterm value creation. It is reducing the UK's exposure to volatile global energy markets and providing more stable, predictable returns through the energy transition, while supporting economic growth and cutting bills for consumers," he said.

Looking ahead, the company said its increasing exposure to regulated, index-linked earnings provides "embedded financial resilience" amid significant macro-economic, political or regulatory uncertainty.

See the latest RNS on Investegate.