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SSE cuts annual earnings forecast but expects renewables to grow in UK

SSE cuts annual earnings forecast but expects renewables to grow in UK

SSE, a British network operator and power generator, lowered its guidance on earnings per share for the year but kept its long-term profits expectations.

It now expects to earn between 155 pence and 160 pence in the fiscal year 2025, compared to its previous guidance of 163 pence to 154 pence.

SSE will benefit from Britain's aim to decarbonise the electricity sector by 2030, with a rapid expansion of renewable energy sources, like wind and solar. Major investments in grid connection are also planned.

The company plans to invest approximately 3 billion pounds ($3.87billion) this year under its Net Zero Accumulation Programme (NZAP Plus) plan.

SSE's renewables production grew by 9.8% in fiscal year 2024 compared to the previous year.

SSE anticipates that renewables production will have increased by 17% for the year ending March 31, boosted in part by a capacity increase. This is despite the cold spells and stormy conditions in Britain which have disrupted SSE's distribution network over recent months.

SSE, who last week promoted their chief commercial officer to chief executive, has reaffirmed that they will aim to earn between 175 and 200 pences per share in the fiscal year ending on March 31, 2027. $1 = 0.7748 pounds (Reporting and editing by Mrigank Dahniwala, Joe Bavier).

(source: Reuters)