SSE’s output of electricity from its own renewable sources across the UK and Ireland was 10% lower than planned for the nine months to 31 December 2022.
The Perth-headquartered energy group's third quarter trading update explained that it was impacted by unseasonably calm and dry weather, along with delays to the Seagreen offshore wind project, which is still expected to complete this summer.
Meanwhile, output of electricity from SSE’s gas-fired generation plant was 27% higher than the same period last year.
Even though Britain broke its previous wind power record in December, there were many days across the year when wind speeds dropped. Over the past year, 36% of Britain’s power has come from renewables, and 41% from gas.
SSE upgraded its full-year underlying Earnings Per Share (EPS) guidance from at least 120p to more than 150p, helped by the diversity of its revenue streams and reflecting increasing clarity over wholesale energy prices and state levies on electricity generators.
The intention to pay a full-year dividend of 85.7p per share was reiterated, although this is expected to drop to 60p in 2023/24 and increase by 5% per year for the next two years to help support “significant” investment and growth plans.
SSE's shares rose 2.8% this morning, following the announcement.
"With market volatility expected to continue in the near term, uncertainties such as plant availability, weather conditions and the extent to which market conditions lead to further optimisation of flexible generation plant, will determine the final full-year outturn," read the statement.
The group remains on course to deliver record investment in 2022/23, with capital expenditure - including acquisitions - still expected to be in excess of £2.5bn.
December's Accelerated Strategic Transmission Investment framework announcement clears the way for SSEN Transmission to build the assets required to support 50GW of offshore wind by 2030 and work continues on agreeing a final settlement for SSEN Distribution to implement its £3.6bn business plan, following Ofgem's recent final determination, which saw baseline allowances increasing by £300m from draft determinations.
Following the completion of a minority stake sale of SSEN Transmission in November, SEE's net debt to earnings ratio is anticipated to be well below the target 4.5 times for this financial year.
Finance director Gregor Alexander said: "Our fully-funded £12.5bn Net Zero Acceleration Programme is progressing at pace as we build the renewables, networks and flexible energy assets needed for a cleaner, more secure energy system.
"SSE is performing well in a shifting and volatile energy landscape, underlining the strength of our balanced business mix and the quality of our assets, and we are well placed to deliver a strong financial performance for the full year.
"We are responding to the cost of living and energy crises by investing record amounts and remain committed to investing additional profit we make into critical low-carbon electricity infrastructure."
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, commented: "The turbo-charged efforts to accelerate its transition to renewables is a bold and admirable move - this push to be at the forefront of the UK’s energy transition puts the group in a unique position to potentially enjoy steeper growth ahead.
"However, renewables carry an inherent risk, which this latest trading update highlights - they’re not always reliable sources of energy.
"To some degree, you’re at the mercy of mother nature," he continued, adding: "Unseasonably calm and dry weather this winter left the group’s renewable output some 10% lower than planned, which means that gas-fired generation plants will still have to make up the energy shortfall for now."
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