SSE, the leading UK-based electricity infrastructure company, has published its full-year 2024/25 financial and operational performance. In it, it confirms a record investment of £2.9bn in energy infrastructure over the last year.
Setting out its results for the 2024/25 financial year, the Group has confirmed:
- Adjusted operating profit of £2,419m.
- Adjusted earnings per share of 160.9p, in line with guidance.
- A revised capex programme of around £17.5bn over the five years to 2027.
In the last year, the group has:
- Reached a milestone of 50% of turbines installed on Dogger Bank A, continuing progress on the 3.6GW offshore wind farm. Completion of Dogger Bank A is expected in the second half of the year.
- Fully energised the Shetland HVDC link – a 260km cable linking Shetland to the GB grid – and completed the associated 443MW Viking wind farm, representing a combined investment of more than £1bn.
- Started construction on the UK’s single largest electricity transmission project, Eastern Green Link 2 (EGL2). The project between SSE and National Grid involves the construction of a 500km subsea electricity transmission link between Peterhead in Aberdeenshire, Scotland, and Drax in North Yorkshire, England.
- Submitted all major substation consents for ASTI and LOTI transmission projects, with remaining consents to be submitted in the summer.
- Made progress in the construction of Eastern Green Link 2 ASTI project.
These projects are part of a programme which has delivered a record £2.9bn investment in energy infrastructure over the last twelve months. This equates to investing around £8m every day over the last year in vital energy infrastructure, supporting the UK government’s clean power mission.
Reflecting a changing macroeconomic environment and wider delays to policy and planning processes, the company has revised its capital investment plan for the five years to 31 March 2027 to around £17.5bn.
Commenting on his last set of financial results as SSE’s Chief Executive,?Alistair Phillips-Davies?said:
“SSE continues to prove the benefits of a portfolio that is built to withstand risk and uncertainty and a strategy that is focused on creating sustainable value. We have met our financial goals for the year and evolved our investment plans to reflect the changing world around us – leaning into the opportunities presented in networks and redoubling our capital discipline across our energy businesses.
“We are particularly well placed to contribute to future energy systems in our home markets built on renewables, networks and flexibility. This opportunity, alongside our balance sheet strength and the increased proportion of index-linked revenue we anticipate, gives us every confidence in our FY27 target of 175-200p earnings per share and sustainable growth to 2030 and beyond.”
Financial performance by business unit
The Group’s balanced business mix delivered another strong financial performance in the year despite continued wider economic turbulence and the expected normalisation of energy commodity price volatility.
Within this, the adjusted operating profit contribution from Networks and Renewables increased on prior year, contributing a combined 87% of the total adjusted operating profit compared to 63% in the prior year.
This increase reflects the strong operating performance and continued investment in both businesses this year, in addition to one-off cost recoveries in networks through the regulatory price control. As expected at the start of the year, the significant decrease in market spark spread price volatility meant that adjusted operating profits from the flexible Thermal business declined 75% on the prior year.
Finally, Energy Customer Solutions continued to see supply margins return to more sustainable levels whilst delivering tariff reductions to customers as energy prices stabilised.
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Source: SSE
