SSE Plc
SSE is a multinational energy company listed on the London Stock Exchange. It operates in both the United Kingdom and Ireland.
It is currently the leading generator of renewable electricity and one of the largest electricity network companies in the UK.
Employees: 10,754
Operating Profit: £3.7 billion in FY22 (SSE doesn’t publish revenue figures)
HQ Location: Perth, Scotland, UK
What they do:
Their core focus is regulated electricity networks and renewables.
They also develop, build, operate, and invest in low-carbon infrastructure in support of the transition to net zero, including onshore and offshore wind, hydropower, electricity transmission, and distribution networks, and telecom services alongside providing energy products and services for businesses and other customers.
SSE sold SSE Energy Services, its retail energy division, to OVO Energy in 2020 to focus solely on the generation and transmission of electricity.
Their vision and priorities:
To be a leading energy company in a net zero world.
To create value for shareholders and society in a sustainable way by developing, building, operating, and investing in the electricity infrastructure and businesses needed in the transition to net zero.
“Our vision is to be a leading energy company in a net zero world. Our core renewables and networks businesses, as well as our complementary businesses in thermal, distributed energy and customer solutions, all have important roles to play in delivering that vision.” - Chief Executive, Alistair Phillips-Davies
Business Goals for 2030
Financial Goals
They are investing around £12.5bn over five years to March 2026, with further opportunities that could take the total to over £25bn this decade in the UK and Ireland alone. This direct investment is primarily in offshore wind, UK electricity networks, and flexible thermal that will create the technologies to support long-term energy security.
They remain on course to report record FY23 capital expenditure in excess of £2.5bn (including acquisitions).
Their outlook to 2026 and beyond:
7-10% adjusted EPS CAGR, upgraded from 5 – 7% at FY22
Targeting a 5x increase in renewable output to 50TWh by FY31
Networks RAV growth of >10% (gross) across FY21 – FY26, and proposed 25% divestment of the Networks businesses
Attractive growth options and returns across the energy value chain, including CCS, Solar, Hydrogen, and Storage
Growth-enabling dividend plan, rebased to 60p in FY24; 5%+ growth in FY25 & 26; aiming for mid-single digit growth thereafter
Three things to know right now
The first power achieved at 1075MW Seagreen offshore wind project is expected in Summer 2023.
They have diversified and enhanced pipelines through the acquisition of a Southern European onshore wind development platform which enables the onshore program to be built over the course of this decade
They completed the acquisition of 1.3GW Triton Power, in a 50:50 Joint Venture with Equinor to support the long-term decarbonisation of the UK power system.
What does each business unit do?
SSE Renewables
From onshore and offshore wind to hydroelectric power, SSE Renewables develops, operates, and owns the low-carbon infrastructure which will support the net-zero transition.
SSEN Distribution
Scottish and Southern Electricity Networks powers 4 million homes and businesses across the north of Scotland and central southern England.
SSE Thermal
Their flexible thermal generation supports the net zero transition with efficient gas power, energy-from-waste, and storage activities. It has a core focus on decarbonising its energy generation through emerging carbon capture and hydrogen technology.
SSE Energy Solutions
This division supplies sector-leading green energy solutions for businesses, from small start-ups to large national corporates and public sector clients, across the UK.
SSE Enterprise
This division provides the essential cutting-edge energy infrastructure and related services needed for a low-carbon future to businesses and public sector customers. These include distributed energy solutions, mechanical and electrical contracting, and telecoms services.
SSE Airtricity
Through this division, they supply green electricity, natural gas, and energy-related services to around 750,000 homes and businesses in Ireland and Northern Ireland.
Their financial calendar
Q1: April-June - Earnings 20th July 2023
Q2: August-October - Earnings 16th November 2023
Q3: November-December - Earnings 20th January 2023
Q4: January- March - Earnings April 2023
Next Earnings Report:
Around 24th May 2023
Positives from the last earnings report Q3FY23
SSE Renewables
The output of electricity from renewable sources in which SSE has an ownership interest across the UK and Ireland was 0.76TWh, or around 10%, below plan in the nine months to 31 December 2022 but 0.94TWh higher than the equivalent period last year. The third quarter has continued to see periods of unseasonably calm and dry weather with delays to the Seagreen project also contributing to the shortfall against the plan.
Construction on Seagreen continues, alongside Dogger Bank and Viking, with Seagreen still expected to be completed in summer 2023 assuming normal weather and planned vessel availability
SSE Thermal
Strong availability across the existing fleet during the last quarter, combined with market conditions, has meant output of electricity from SSE’s gas-fired generation plant for the nine months to 31 December 2022 was 27% higher than the same period last year as SSE’s fleet helped ensure the security of supply for customers.
Commissioning of Keadby 2 CCGT is due to recommence on 22 January with the performance validation period continuing to be expected to complete on 11 February 2023.