SSE stock steady following adjusted EPS guidance

Published 05/02/2025, 10:28
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Investing.com -- Shares of SSE PLC (LSE:LON:SSE) remained unchanged today after the company issued a trading update for the third quarter, providing guidance on adjusted earnings per share (EPS) for the fiscal year 2024/2025 and operational performance details.

The anticipated adjusted EPS range of 154-163 pence per share is slightly below the current Bloomberg consensus of 161 pence per share, but the company maintains its operating profit expectations for its business units.

SSE’s trading statement highlighted a strong operational performance despite variable weather conditions in the third quarter. The company is targeting an EPS of 175-200 pence per share in FY27, indicating confidence in its long-term prospects. Renewables output was 26% higher YoY at 9.3 GWh, benefiting from capacity additions and favorable weather conditions.

Notable project updates include the achievement of first power at the 101 MW Yellow (OTC:YELLQ) River and the final investment decision (FID) on the 208 MW Strathy South. Progress continues on the Dogger Bank wind project, with turbine installation ongoing and expected completion in the second half of 2025.

In the transmission sector, SSE plans to submit the remaining ASTI projects for planning in the upcoming months. The thermal division announced the FID on Tarbet NextGen, backed by a 10-year capacity agreement and scheduled to be operational by late 2027. Additionally, SSE secured 522 MW of de-rated electricity generation capacity in Ireland’s T-4 2028/29 Capacity Auction.

An analyst at RBC commented on the update, stating, "Current consensus is in the range, although slightly above the midpoint of the guided range. Elsewhere, operationally the business continues on plan, with timings on Dogger Bank reiterated and networks seemingly delivering in line with expectations."

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