SSE Q1 renewables output falls 4% as weather weighs on generation

Investing.com -- SSE plc (LON:SSE) on Thursday reported a 4% year-on-year decline in renewable energy output for the quarter ended June 30, citing unfavorable weather, but maintained its full-year financial and operational guidance.

Total (EPA:TTEF) renewables output in the three-month period was 2,499GWh, compared with 2,606GWh in the same quarter last year. 

Onshore wind generation accounted for 1,233GWh, offshore wind 863GWh, conventional hydro 335GWh, pumped storage 58GWh, and battery storage 10GWh. 

The company cited weak wind conditions in April and May as the primary factor behind the lower output, though asset availability remained strong.

Thermal generation for the quarter totaled 3,186GWh. Gas-fired generation in Great Britain contributed 2,901GWh, the Republic of Ireland 217GWh, and energy from waste and biomass added 68GWh. 

The figures include oil-fired generation and reflect restated comparatives following operational changes in SSE Thermal’s asset portfolio.

SSE reaffirmed its adjusted earnings per share guidance of 175–200p for fiscal year 2026/27. It did not provide EPS guidance for fiscal year 2025/26, consistent with previous first-quarter practices. 

“We infer the components result in ~£2.3-2.4bn adj. operating profit, which compares with Bloomberg consensus £2.3bn. We do not expect meaningful changes to consensus at this time,” said analysts at Morgan Stanley (NYSE:MS) in a note.

“We note FY27 will be year 1 of new ET reg period with Final Determination ~Dec this year,” Morgan Stanley added.

The company also reiterated its May guidance of £2.3–2.4 billion in adjusted operating profit for the current fiscal year, aligning with Bloomberg consensus estimates.

Capital expenditure in networks rose by approximately £0.5 billion compared to the same period last year. 

The company said this reflected progress in infrastructure projects under its £17.5 billion five-year investment plan. SSE reported continued momentum in its networks and renewables segments, with no change to full-year investment outlooks.

In policy and regulatory developments, SSE welcomed the UK Government’s decision to retain national electricity pricing. 

It also acknowledged Ofgem’s Draft Determination for the RIIO-T3 price control, describing it as a step forward but stating that further improvement is needed ahead of the final determination expected in December.

The company announced Scottish Government approval for the Skye Reinforcement transmission project, designed to strengthen regional energy capacity. 

A final investment decision was taken to construct the 170MW Platin power station in Ireland, which will operate initially on Hydrotreated Vegetable Oil and later transition to hydrogen. 

Planning consent is being sought to allow limited natural gas use. The project is expected to be completed by 2028.

SSE also completed a dual-tranche hybrid capital issuance, comprising a 5.25-year sterling note at 4% and an €500 million, 8-year euro note at 5.625%. 

The proceeds will support general corporate purposes and upcoming hybrid redemptions.

There was no update on the Dogger Bank wind project, which remains on schedule as per the company’s May results statement.