How Scottish energy giant SSE is powering UK’s green future and supporting 50,000 jobs

“Renewables, flexible power and electricity networks are the building blocks of a cleaner and more secure energy system” – CEO Alistair Phillips-Davies

Power giant SSE is at the heart of Britain’s energy revolution and its latest results, which appeared to reassure City investors, have highlighted its growing green credentials.

Unveiling its full-year figures, the Perth-headquartered group said it had delivered investment of £2.5 billion in “critical” national energy infrastructure, including kicking off the construction of the largest subsea transmission cable in the UK and progressing the world’s largest wind farm at Dogger Bank in the North Sea. It also hailed a full power milestone at Seagreen, the world’s deepest fixed bottom offshore wind farm.

The FTSE-100 firm said it was making a major contribution to communities, adding £6bn to UK gross domestic product (GDP), supporting more than 50,000 UK jobs with a further €1bn (£850 million) contribution to Ireland’s GDP and in excess of 3,000 Irish jobs supported.

Perth-headquartered FTSE-100 company SSE is one the world's largest investors in onshore and offshore wind power.

SSE - formerly Scottish & Southern Energy - posted adjusted operating profits of £2.4bn for the year to the end of March, a little down on before but at the upper end of previous guidance. Profits cooled markedly at its thermal and gas storage division amid a normalisation in energy commodity prices. Underlying earnings per share of 158.5p were towards the top end of guidance. A final dividend of 40p per share will take the full-year pay-out to 60p, in line with the group’s growth aligned dividend plan.

Chief executive Alistair Phillips-Davies said: “Renewables, flexible power and electricity networks are the building blocks of a cleaner and more secure energy system. With world-class assets and capabilities, and enhanced visibility of growth in transmission, SSE is ideally placed to benefit from this structural trend, creating value for shareholders and society.”

John Moore, senior investment manager at wealth firm RBC Brewin Dolphin, said: “SSE has delivered a steady set of results, despite some challenges in the past year. Unfavourable weather has had a temporary impact and the company still managed to deliver towards the upper end of previous guidance.

“SSE is in a sweet spot in terms of the energy transition and the direction of policy, and the company is making significant investments and becoming an increasingly important part of the UK’s infrastructure. At the same time, there is a good balance with shareholder returns, which could make it an attractive option for income-minded investors.”

Aarin Chiekrie, equity analyst at investment platform Hargreaves Lansdown, noted: “SSE managed to electrify investors by delivering full-year profits at the top end of its target. The transition to becoming a renewable energy powerhouse has continued at pace, with a large chunk of its £2.5bn worth of investment directed into greener assets last year.

“Flexible gas-fired plants are still part of the energy mix and complement the renewables assets well given the latter’s somewhat unreliable nature. The flexibility that these plants offer is needed for energy security as it turns out the wind doesn’t always blow, even in Scotland. Profitability from this division wasn’t as impressive as in the prior year due to lower volatility as prices normalised from their peak.”

Perth power giant SSE pledges record green investment as profits swell