SSE PLC
LSE:SSE
SSE PLC
In the dynamic landscape of the energy sector, SSE PLC stands as a robust player primarily operating within the United Kingdom and Ireland. Established through decades of evolution, SSE has strategically positioned itself in both the generation and supply domains of electricity and gas. The company primarily generates revenue by producing and supplying electricity and gas to millions of homes and businesses. Crucially, SSE has invested significantly in renewable energy, thus broadening its portfolio and aligning with global trends towards sustainability. Wind farms, both onshore and offshore, form a considerable portion of its energy production, allowing SSE to tap into cleaner and increasingly cost-effective energy sources.
While its roots are deeply embedded in traditional energy generation, a significant part of SSE's business model hinges on the regulated networks it owns and operates. These infrastructure assets ensure the transmission and distribution of electricity—an essential service that guarantees a stable revenue stream. Furthermore, SSE’s venture into energy-related services helps enhance its value proposition in a highly competitive market. Whether it's performing maintenance on energy installations or improving energy efficiency for large-scale facilities, these services provide additional revenue channels, reinforcing its commitment to an integrated approach of delivering reliable energy solutions while supporting the transition to a low-carbon economy. Through such multifaceted operations, SSE PLC continues to navigate and adapt amid a rapidly evolving industry landscape.
In the dynamic landscape of the energy sector, SSE PLC stands as a robust player primarily operating within the United Kingdom and Ireland. Established through decades of evolution, SSE has strategically positioned itself in both the generation and supply domains of electricity and gas. The company primarily generates revenue by producing and supplying electricity and gas to millions of homes and businesses. Crucially, SSE has invested significantly in renewable energy, thus broadening its portfolio and aligning with global trends towards sustainability. Wind farms, both onshore and offshore, form a considerable portion of its energy production, allowing SSE to tap into cleaner and increasingly cost-effective energy sources.
While its roots are deeply embedded in traditional energy generation, a significant part of SSE's business model hinges on the regulated networks it owns and operates. These infrastructure assets ensure the transmission and distribution of electricity—an essential service that guarantees a stable revenue stream. Furthermore, SSE’s venture into energy-related services helps enhance its value proposition in a highly competitive market. Whether it's performing maintenance on energy installations or improving energy efficiency for large-scale facilities, these services provide additional revenue channels, reinforcing its commitment to an integrated approach of delivering reliable energy solutions while supporting the transition to a low-carbon economy. Through such multifaceted operations, SSE PLC continues to navigate and adapt amid a rapidly evolving industry landscape.
Major Investment Plan: SSE announced a fully funded GBP 33 billion investment plan through 2030, with 80% of capital going to electricity networks and the remainder to renewables and flexibility.
EPS Growth Target: Management guided for adjusted earnings per share to reach 225p-250p by 2030, a CAGR of 7% to 9% from the FY25 base of 160.9p.
Dividend Policy: The company reaffirmed its plan to grow dividends per share by 5% to 10% per year through 2030, extending its progressive policy.
Funding Structure: The plan is primarily self-funded, with GBP 2 billion coming from a new equity placing and another GBP 2 billion from targeted asset disposals, mostly toward the end of the plan.
Network Focus: SSE is shifting its strategy to emphasize regulated networks, expecting these to constitute about 80% of group earnings and to triple the networks regulatory asset value to GBP 40 billion by 2030.
Guidance Reaffirmed: Management reconfirmed segmental guidance for FY26 and FY27 and expressed confidence in meeting its FY27 earnings targets.
Strong H1 Performance: H1 adjusted operating profit of GBP 655 million and adjusted EPS of 36.1p were both in line with expectations.
Cost Efficiencies: SSE is targeting GBP 200 million in recurring annual cost efficiencies by 2028.
