Following strong interim results, we will continue with our c.£20bn investment programme in mission-critical clean power infrastructure through 2027.
Our Chief Executive Alistair Phillips-Davies has also announced his intention to retire from SSE during 2025 after 27 years with the group and 11 years as Chief Executive.
Key half-year financial results
We have published our interim financial results, for the six months to the end of September 2024. Key highlights include:
- adjusted earnings per share of 49.8p, up 35%, in line with previous guidance
- increased contribution from Electricity Networks and Renewables more than offsetting lower Thermal earnings
- interim dividend of 21.2p, up 6%
- £1.3bn invested in the first half focused on delivering clean power infrastructure
- 443MW Viking onshore wind farm and 260km Shetland HVDC subsea link completed
- ongoing installation of turbines on Dogger Bank A offshore wind farm
- work started on 500km Eastern Green Link 2, Great Britain's largest transmission project
- expectations unchanged for full year
Electricity networks adjusted operating profits increased to £504m from £336m. As expected, lower revenue in Transmission was more than offset by multi-year inflation catch-up through distribution tariffs.
Renewables adjusted operating profit increased to £326m from £87m in the prior year period. This increase was supported by a 1GW+ increase in operating capacity. And favourable weather conditions alongside an increase in hedged prices.
Thermal adjusted operating losses of £44m compared to a £226m in the prior year period. This is a result of a more stable market environment, driven by a return to favourable renewables weather conditions over the period.
Alistair Phillips-Davies, SSE Chief Executive, said:
“This is a strong set of interim results including delivery of higher-quality earnings and the mission-critical infrastructure that shows SSE is at the heart of the clean energy transition.
“We are also encouraged by the increasing attractiveness of our main markets and our alignment with the new UK Government’s mission to achieve Clean Power by 2030.
“SSE will be a key delivery partner with our ~£20bn investment programme and the scale and quality of our project pipeline that spans renewables, electricity networks and flexible power plants – which will all be required to make clean power a reality.
“Our unique position gives us exceptional growth opportunities and clear targets that will deliver long-term value to shareholders and society.”
Chief Executive, Alistair Phillips-Davies, to retire from SSE in 2025
Alistair Phillips-Davies intends to retire from SSE during 2025 after more than 11 years of leading the company. Alistair will remain in place until a successor is appointed to ensure a smooth and orderly transition. He and the rest of the executive team will remain fully focused on the delivery of SSE’s strategy.
SSE Chair, Sir John Manzoni, will now lead a thorough and extensive recruitment process for Alistair’s’ successor. The process will take account of SSE’s highly experienced and capable internal team, as well as the wider market, supported by independent recruitment specialists KornFerry.
Sir John Manzoni, Chair of SSE, said:
“Alistair has been an exceptional Chief Executive. Under his leadership, the Group has transformed into a genuine energy transition leader, sharpening its focus on networks, renewables and flexibility, whilst successfully entering new markets.
“Over his 11 years as Chief Executive he has assembled a world-class team around him and created a legacy of critical clean electricity infrastructure.
“Alistair has also grown SSE’s UK and Irish core, whilst expanding into selected overseas markets, leaving the Company extremely well positioned to continue creating long-term, sustainable value for society and shareholders under his successor.
“There will be a smooth and orderly transition with Alistair continuing to lead the Company until a successor is appointed and of course our net zero aligned strategy remains unchanged.”
Alistair Phillips-Davies, Chief Executive, said:
“Being Chief Executive of SSE is an immense privilege and I am extremely proud of what we have achieved over the past decade – right across the Group – as we have steadily grown into becoming the UK and Ireland’s clean energy champion.
“We have come a long, long way thanks to the hard work and talent of countless colleagues during that time, and it has been an amazing experience to be part of this great team in the UK, Ireland and now further afield.
“I remain fully committed to growing the business until my successor is found and continue to be fully focused on delivering our clean power strategy with the rest of our highly capable executive team.”
Delivering mission-critical clean power
We are investing c.£20bn between 2022 and 2027 on renewables, flexibility and electricity networks. We're now halfway through our investment programme. £1.3bn was invested in the first half, including:
- Full energisation of Shetland HVDC link. And completion of associated 443MW Viking wind farm. The 260km subsea transmission cable connected the islands to the GB energy grid for the first time.
- Construction commenced on Eastern Green Link 2 (EGL2). The 2GW subsea HVDC project is in partnership with National Grid. It will be the UK’s single largest electricity transmission project. The link will transport enough electricity to power two million UK homes.
- SSEN Transmission received final consents for Argyll and Kintyre 275kV upgrade. They commenced construction on £900m+ Orkney-Caithness link.
- SSEN Distribution have framework agreements worth £1.3bn+ having been with delivery partners. Over 750MW of distributed flexibility has been procured under the business plan.
- Progress has continued on 3.6GW Dogger Bank offshore wind farm which. When complete, it will be the world’s largest wind farm. Completion of the first phase, Dogger Bank A, is expected in the second half of 2025.
- The refurbishment of Tummel Bridge Hydropower Station. £50m was invested to increase capacity to 40MW, extending the plant's working life by at least 40 years.
- Commercial operations commenced on 55MW Slough Multifuel, a Joint Venture with CIP. The facility is expected to process around 480,000 tonnes of residual waste each year.
- Internationally, ~100MW onshore wind is under construction across Spain, France and Italy.
We had success at auctions during the last six months, including:
- the UK's sixth Contract for Difference auction (AR6) with 130MW Cloiche onshore wind farm
- Ireland’s fourth Renewable Electricity Support Scheme auction with 60MW Drumnahough onshore wind farm joint venture
- in the Netherlands with 2GW Ijmuden Ver Alpha offshore wind farm joint venture.