SSE has reported first quarter performance slightly exceeding expectations.
The trading update stated that progress across its various capital expenditure projects "continues at pace", with first power from Seagreen offshore wind farm expected by the end of this month and construction on Viking onshore wind farm and Dogger Bank A, B and C offshore wind farms progressing.
The Perth-headquartered energy group expects to report full year adjusted earnings per share of at least 120 pence and anticipates adjusted capital expenditure and investment to total in excess of £2.5bn - including acquisitions, but net of project finance development expenditure refunds - this financial year.
Progress continues to be made on the disposal of a 25% minority stake in SSEN Transmission, with the formal process now under way. An agreed sale is being targeted by the end of the calendar year, with completion following receipt of regulatory approvals.
Finance director Gregor Alexander said: "The strength of SSE's integrated and balanced business model, combined with our commitment to positive engagement with key stakeholders, is serving us well through a period of market, political and regulatory complexity.
"Meanwhile, CfD success at Viking, progress on our Southern European pipeline acquisition, the positive outlook for Transmission from the recent Holistic Network Design and new hydrogen options at Saltend all position us well for the long term.
"We remain confident in our financial outlook for strong earnings growth this year and look forward to updating the market on performance in our interim results statement on 16 November."
Within SSE Renewables, output of electricity from renewable sources in which SSE has an ownership interest across the UK and Ireland was 93GWh - or around 5% - ahead of plan, mainly due to weather conditions.
For SSE Thermal, output of electricity from SSE's gas-fired generation plant for the three months to 30 June was overall slightly ahead of the same period last year, reflecting market conditions and individual plant availability.
Stuart Lamont, investment manager at Brewin Dolphin, commented: "SSE was expected to deliver a robust update against the backdrop of high power prices and the company appears to have delivered, with performance exceeding management’s expectations.
"The business continues to make progress on its strategy which, over the long term, is designed to support spending on major projects and an attractive dividend.
"At the same time, SSE should benefit from the transition to net zero and the current macro-economic backdrop, but political risks remain elevated."
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