SSE Swings to Profit on Higher Power Prices
By Christian Moess Laursen
SSE swung back to a full fiscal-year profit and beat analysts' estimates on higher power prices boosting its renewables segment, offsetting energy prices coming down from last year's peaks.
The U.K. energy infrastructure company said Wednesday that it swung to a pretax profit of 2.495 billion pounds ($3.17 billion) in the year ended March 31 from a loss of GBP205.6 million in fiscal 2023.
Analysts had forecast GBP2.15 billion, based on a FactSet poll of seven estimates.
Adjusted earnings per share rose to 158.5 pence, up from a loss per share of 14.7 pence, in line with the FTSE 100-listed company's guidance of 152 to 160 pence.
Operating profit increased to GBP2.61 billion from a loss of GBP146.3 million, boosted by its renewables segment reporting 47% higher contribution, and offsetting a significant drop in the thermal and gas-storage business.
The Scotland-based energy company declared a final dividend of 40 pence, taking the full-year payout to 60 pence, down from 96.7 pence a year prior.
In line with previous years, SSE didn't provide full-earnings guidance. SSE reiterated its target of 175 to 200 pence adjusted EPS for fiscal 2027.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
May 22, 2024 02:40 ET (06:40 GMT)
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