Energy network firm SSE reports dip in profits amid multibillion-pound investment

Energy network firm SSE has revealed a dip in profits as it pushes forward with a multibillion-pound investment plan.

It came as the group reported financial results “at the upper end” of forecasts for the past year.

The power company hailed a “strong operational performance” and told shareholders its mix of operations meant it has seen no immediate impact from wider global volatility.

It revealed that pre-tax profits dipped by 1% to £1.84bn for the year to March, compared with a year earlier, while adjusted pre-tax profits were 6% lower.

It reported earnings per share of 153.5p, at the top end of its guidance.

SSE also reported that its capital investment jumped by 23% to £3.6bn for the year, driven by its transmission division.

The company said it plans to increase capital investment to more than £5bn for the current financial year.

Martin Pibworth, chief executive of the group, said: “This year has demonstrated the strength and resilience of SSE’s integrated model.

“By operating our business efficiently and optimally, while accelerating electrification and building energy infrastructure to unlock homegrown renewables, we are strengthening energy security and lowering system costs over time.

“With record levels of capital investment in line with our plan and strong momentum across the group, we are well placed to deliver sustainable growth and value creation for our shareholders while helping to build a more affordable and secure energy system for the UK.”

Duncan Ferris, investment writer at Freetrade, said: “SSE’s transmission business saw profits and investment both sharply higher, underlining how much now rests on its UK grid upgrade.

“For the moment, SSE’s energy transition plans and operations are on track, and the business appears to be bearing the weight of investment well.

“That’s just as well, as buildout projects like SSE’s are an important part of the UK energy infrastructure puzzle.”