Investing.com -- Shares of SSE plc (LON:SSE) rose on Wednesday after it delivered strong half-year results, reporting adjusted EPS of 49.8p, surpassing its earlier guidance of at least 45p.
SSE has also reaffirmed its full-year EPS target and is maintaining guidance for adjusted EPS between 175-200p by FY27.
The energy giant remains on track with its £20 billion clean energy investment program, having spent £1.3 billion in capex so far this fiscal year.
Net debt stands at £9.8 billion, with the company projecting capital expenditure of around £3 billion in FY25. Despite the high spending, SSE expects its net debt-to-EBITDA ratio to stay at the lower end of the 3.5-4.0x range.
The company’s Networks division was a key driver of growth, with EBIT rising 50% to £504 million. SSEN Distribution contributed £346.3 million, a 188% surge, as inflation adjustments boosted revenues.
Meanwhile, the Transmission segment faced a 27% drop in EBIT due to the impact of capital allowances.
In Renewables, SSE benefited from increased operating capacity and favorable wind conditions in Scotland, which were about 14% stronger than in the previous year. This lifted EBIT by 286% to £335.6 million.
However, the Thermal Energy segment reported an EBIT loss of £44 million, reflecting limited opportunities for flexible thermal and gas operations in a more stable market environment.
Seasonal factors also weighed on gas storage. However, the company reiterated its full-year adjusted operating profit forecast of £200 million for these assets.
Separately, CEO Alistair Phillips-Davies will retire in 2025. He plans to remain in his role until a successor is appointed, ensuring a smooth transition.
“The move to ensure a smooth leadership transition should be well received, whilst we expect that gas prices may be a focus of the call alongside any further details that can be provided on offshore project timings/costs,” said analysts at RBC Capital Markets in a note.