Full Year 2026 SSE PLC Earnings Call Transcript
Key Points
- SSE PLC (SSEZF) has successfully met its safety goals, with no life-changing injuries reported and stable injury rates despite increased contractor hours.
- The company is executing a significant £33 billion investment plan, focusing on networks, renewables, and flexibility, which promises long-term growth and energy independence.
- SSE PLC (SSEZF) has delivered an 80% increase in transmission investment year-on-year, with construction underway on five major projects in Scotland.
- The company has a strong balance sheet, with 90% of its debt held at fixed rates and a robust investment grade credit rating.
- SSE PLC (SSEZF) is making progress in renewables, with successful turbine installations at Dogger Bank and a competitive CFD for Berwick Bank, enhancing its homegrown energy capacity.
- FY26 earnings were lower than the previous year due to reduced distribution earnings and dilution from a November equity raise.
- The company faces challenges with impairments on two onshore wind farms in Scotland due to delayed grid connections and increased CapEx.
- There is ongoing cost inflation in the value chain, particularly for raw materials, which could impact the company's network CapEx budgets.
- SSE PLC (SSEZF) did not secure contracts for life extensions through the UK capacity mechanism this year, affecting its conventional thermal generation earnings.
- The company is experiencing mixed conditions in its renewables business, with variability in hydro conditions and lower expected year-on-year hedging prices.
(video playing) Good morning and welcome to today's presentation. I'm pleased to share my first full year results as SSE's Chief Executive and I'm joined today by Barry O'Regan, our Chief Financial Officer.
Protecting the people who work for us is always our top priority, so let me start with a few words on safety performance.
We met our overriding safety goal of no life changing injuries and our combined total recordable injury rates has remained similar year on year.
Over the last five years we've seen a doubling of contractor hours worked as investment accelerates, however injury rates have remained flat across that time.
We believe this has been meaningfully aided by our industry leading immersive training programme in which around 14,000 people have now taken part.
As our construction program continues to grow, investments in building and maintaining a strong safety culture will be more important than ever.
We'll be delighted to take your questions on our results, but
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