TIDMSSE
RNS Number : 0543G
SSE PLC
22 July 2021
SSE PLC
Q1 2021/22 TRADING STATEMENT
22 JULY 2021
This Trading Statement provides an update on operational
performance ahead of today's AGM and captures key developments
since the publication of SSE's Preliminary Full-year Results
Statement on 26 May 2021. SSE remains committed to the five-year
dividend plan to March 2023, and will provide guidance on full-year
adjusted earnings per share later in the year.
KEY DEVELOPMENTS
-- Setting out a strong, stakeholder-led business plan in Distribution
On 1 July, SSEN Distribution published its ambitious
stakeholder-led draft business plan for 2023 to 2028, setting out
how it will deliver improvements for customers and accelerate
investment in its networks to 'power communities to net zero' over
the course of the RIIO-ED2 price control period. The plan includes
GBP4.1bn of investment, representing an increase of around 35%
compared to an equivalent period in ED1, and would see SSEN
Distribution's regulated asset value increase to over GBP6bn from
around GBP4bn at the end of the current price control.
-- Creating value from non-core disposals
Good progress continues to be made on SSE's disposals programme
which is on course to realise more than GBP2bn from the sale of
non-core assets and businesses that are not a good fit with SSE's
net zero strategy. The sale of SSE's Contracting business to
Aurelius, first announced on 1 April, was successfully completed on
30 June 2021. As reported in May, SSE has initiated a sale process
for its stake in SGN, targeting an agreed sale by the end of the
calendar year.*
-- Projects under construction and future pipeline
Construction continues to progress on SSE's major projects in
Transmission and in Renewables, in line with the update provided in
May. These include building the world's largest offshore wind farm
at Dogger Bank, Scotland's largest offshore wind farm at Seagreen
and one of Europe's most productive onshore wind farms at Viking on
Shetland, as well as the associated link connecting the island to
the mainland.
SSE continues to expect that capital expenditure and investment
will total around GBP2bn in 2021/22 (net of project finance
development expenditure refunds).
Looking further ahead, SSE is seeking to add to its considerable
pipeline in Renewables and has submitted bids, with its partners
Marubeni and CIP, for a number of sites through the ScotWind seabed
leasing process.
-- Pursuing growth options in Transmission
SSEN Transmission remains on track to submit Initial Needs Cases
to Ofgem for the Skye Reinforcement this summer and the Argyll
275kV upgrade this autumn. A Final Needs Case for the first of two
planned East Coast HVDC links from Peterhead to England is also
expected to be submitted by the end of 2021. These are over and
above SSEN Transmission's RIIO-T2 Certain View which, alongside
additional Uncertainty Mechanism expenditure needed to deliver a
pathway towards net zero, could bring total RIIO-T2 expenditure to
over GBP4bn, with the associated Transmission RAV potentially
increasing to over GBP6bn over the same period.
-- Appointing new members of the SSE Board
In June, SSE announced the appointment of two new non-Executive
Directors, The Rt Hon Elish Angiolini QC and Debbie Crosbie, both
of whom will join the Board and Nomination Committee on 1 September
2021.
Gregor Alexander, Finance Director, said:
"We have delivered on our purpose through the coronavirus
pandemic and are continuing to progress growth opportunities and
options arising from our net zero strategy.
"We have an enviable offshore wind pipeline which we are seeking
to expand and diversify, options to develop new thermal and pumped
storage hydro technologies that will be vitally important in the
transition to net zero, and we see significant RAV growth potential
in our regulated electricity businesses.
"This represents an exciting future for SSE, and we look forward
to updating the market on our capital expenditure and investment
plans at our interim results in November. In the meantime, our
focus remains on strategic delivery across the group, in doing so
creating sustainable value for shareholders and society."
*Given a sales process has been initiated, SSE expects its share
of SGN will be treated as held for sale for the 2021/22 financial
year.
OPERATIONAL PERFORMANCE
SSE Renewables
Output of electricity from renewable sources in which SSE has an
ownership interest across the UK and Ireland was 403GWh, or around
19%, below plan in the quarter to 30 June 2021, mainly due to
weather conditions. This shortfall represents less than 4% of the
annual forecast total output.
Actual output Planned output Actual output
for 3 months for 3 months for 3 months
to to to
30 June 2021 30 June 2021 30 June
2020
Onshore wind generation output
- GWh inc. constrained off
output 791 988 878
-------------- --------------- --------------
Offshore wind generation
output - GWh inc. constrained
off output 290 393 410
-------------- --------------- --------------
Conventional hydro generation
output - GWh 593 696 674
-------------- --------------- --------------
Total renewables output (excl.
pumped storage) - GWh 1,674 2,077 1,962
-------------- --------------- --------------
Pumped storage generation
output - GWh 48 - 26
-------------- --------------- --------------
Total renewables output -
GWh 1,722 - 1,988
-------------- --------------- --------------
Wind output based on SSE's contractual share.
Output in the three months to 30 June 2021 includes 28GWh of
onshore and 0.5GWh of offshore compensated constrained off
generation, the same period in 2020 includes 132GWh of onshore, and
nil offshore, compensated constrained off generation.
Pumped storage volumes excluded from planned comparison as
financial performance of site less affected by volumes
generated.
SSEN Distribution
3 months 3 months
to to
30 June 2021 30 June 2020
Customer minutes lost (SHEPD) - average
per customer 10 10
-------------- --------------
Customer minutes lost (SEPD) - average
per customer 11 10
-------------- --------------
Customer interruptions (SHEPD) - per 100
customers 13 14
-------------- --------------
Customer interruptions (SEPD) - per 100
customers 10 12
-------------- --------------
Electricity transported through SSEN Distribution
- TWh 8.7 7.7
-------------- --------------
SSE Thermal
Output of electricity from SSE's gas-fired generation plant for
the three months to 30 June was around 9% lower than in the same
period in 2020, reflecting plant availability and market
conditions. Flexible thermal generation continues to play a key
part in the GB and Irish energy markets as we transition to net
zero, creating value by providing vital balancing services to the
system.
3 months to 30 3 months to 30
June 2021 June 2020
Gas-fired generation output
(GB)- GWh 2,840 3,467
--------------- ---------------
Gas-fired generation output
(ROI)- GWh 911 654
--------------- ---------------
Total gas-fired generation output
- GWh 3,751 4,121
--------------- ---------------
Output includes 177GWh of oil-fired generation in the three
months to 30 June 2021 and 64GWh of oil-fired generation in the
same period in 2020, primarily older Irish plant.
SSE announced the sale of its stake in Ferrybridge and Skelton
Grange multifuel assets on 13 October 2020.
AGM AND NOTIFICATION OF CLOSE PERIOD
This Trading Statement is published in advance of SSE's Annual
General Meeting 2021, which takes place today, 22 July, at 12.30pm
in Perth. SSE will issue a further business update with its
Notification of Close Period statement on 29 September 2021.
ENQUIRIES
Investors and analysts ir@sse.com +44(0)345 0760 530
Media media@sse.com +44(0)345 0760 530
S
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFFFVIDSILFIL
(END) Dow Jones Newswires
July 22, 2021 02:00 ET (06:00 GMT)
Sse (LSE:SSE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Sse (LSE:SSE)
Historical Stock Chart
From Apr 2023 to Apr 2024
