Half Year 2026 SSE PLC Earnings Call Transcript
Key Points
- SSE PLC (SSEZF) announced a transformational, fully funded investment plan of £33 billion, focusing 80% on networks, which is expected to grow the regulatory asset base by a compound annual growth rate of around 25% to 2030.
- The company aims to achieve between 225 to 250 earnings per share by 2030, supported by a sustainable and progressive dividend policy.
- SSE PLC (SSEZF) has a strong track record of delivering complex projects, such as the Shetland HVDC connection and Viking Wind Farm, and continues to make significant progress on major transmission and renewable projects.
- The investment plan is largely self-funded, with 90% of the funding coming from operational cash flows and net debt, ensuring a strong balance sheet.
- SSE PLC (SSEZF) is strategically positioned to benefit from the energy transition, with a focus on homegrown, secure, and clean energy infrastructure in the UK and Ireland.
- The company's adjusted operating profit for the first half fell by £84 million in the combined networks businesses, with distribution profits lower due to nonrecurring inflation adjustments.
- SSE PLC (SSEZF) faces uncertainties in planning consents for major transmission projects, which are outside of its control and could impact timelines.
- The renewables segment experienced a 20% decrease in hedge prices, affecting adjusted operating profits despite increased capacity.
- The flexibility segment saw a decline in adjusted operating profits due to lower volumes and a bad debt release in the previous period.
- The company is dependent on regulatory decisions, such as Ofgem's final determination on Rio T3, which could impact the execution of its investment plan.
Mr President, good morning everyone, and thank you for joining us today as we set out our transformational, fully funded investment plan to deliver high-quality capital and earnings growth.
As I give my first presentation as Chief Executive, I am delighted to say that before us lies the most exciting period of growth I have seen in my near 3 decades at the SSE.
And by leaning into the UK networks opportunity, we are underlining our position as a top tier European energy player.
Over the course of the next 30 minutes, we will outline how we have been ramping up delivery of game changing infrastructure, provide a brief update on our financial performance, and finally, lay out the detail behind a bold new plan that faces into the paradigm shift underway in our sector.
Before I hand over to our Chief Financial Officer Barry O'Regan to run through our results for the half year, I want to briefly set the context for how our integrated strategy optimizes growth and creates long-term sustainable value.
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