SSE PLC (LSE:SSE) has reaffirmed its full-year earnings guidance after a strong first quarter marked by surging renewables output and accelerating networks investment.
The FTSE 100 energy group said it remained firmly on course to invest a record £5 billion this year, forming part of an ambitious five-year, £33 billion capital plan.
Networks investment rose sharply to £888 million in the quarter, up from £484 million a year earlier, representing an 83% increase as major transmission projects gathered pace.
Renewables output climbed to 3,264 gigawatt hours from 2,499 gigawatt hours in the same period last year, reflecting both favourable weather conditions and the addition of new generating capacity.
Adjusted earnings per share guidance of 168p to 193p for 2026/27 was left unchanged, with the longer-term target of 225p to 250p for 2029/30 also maintained.
Chief financial officer Barry O’Regan said recent momentum had given increased visibility over the delivery of the group’s 2030s pipeline as the system operator’s strategic plans began to crystallise and further transmission projects emerged.
O’Regan added that the company was underpinning compounding, long-term earnings growth and creating significant value for investors.
The group flagged a substantial potential boost after the National Energy System Operator identified more than £12 billion of additional potential investment for its transmission arm, taking newly identified spend under the Future Uncertainty Mechanism to more than £17 billion, subject to regulatory and planning approvals.
Construction has begun on the Netherton Hub near Peterhead, which will support the Spittal to Peterhead and Eastern Green Link subsea projects, while early work has also started on the Western Isles HVDC link.
Progress at Dogger Bank B has been particularly notable, with 30 turbines installed and the installation pace significantly exceeding that of the first phase of the world’s largest offshore wind farm.
SSE’s Coire Glas pumped hydro scheme secured inclusion in Ofgem’s provisional list for cap and floor investment support, though the company noted significant detail still needed to be resolved.
To support its investment programme, SSE raised £1.1 billion of hybrid debt and £1.3 billion of senior debt during the quarter, diversifying its funding sources in the process.
John Pettigrew, former National Grid chief executive, is set to join the SSE board as a non-executive director in December, strengthening its energy sector credentials at a critical juncture.