SSE reaffirms annual profit forecast, warns on project delay
Reuters
Published Feb 08, 2024 07:58
Updated Feb 08, 2024 10:48
(Reuters) -British power generator and network operator SSE (LON:SSE) kept its annual profit forecast on Thursday, but warned one of its major projects may face a delay to full operations.
The company, which reiterated its adjusted earnings per share forecast for the full year ending in March of more than 150 pence, said challenging weather and operational conditions that saw 10 named storms hurt its renewables output in the third quarter of 2023.
The company also said its Dogger Bank A offshore wind farm may not be fully operational until 2025 rather than this year as initially expected.
It said challenging weather, availability of vessels and supply chain delays had slowed its development.
The project is expected to have a total capacity of 1.2 gigawatts, capable of powering around 2 million homes.
SSE said the delay would not materially change the project's returns.
Shares in the company, which have gained more than 8% in 2023, were trading down almost 2% at 1,620 pence at 1022 GMT.
SSE Renewables production over the first three quarters of the year was 15% below the company's planned output, impacted by mixed weather conditions and short-term plant outages.
This weather has continued into January, SSE said, adding that annual earnings outcome was subject to plant availability, supportive market conditions and normal weather for the remainder of the year.
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Written By: Reuters
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