SSE generates £3.4 billion for Scottish economy as green investment accelerates

Power giant SSE said it was generating nearly £10 billion for the UK economy, including £3.4bn in Scotland, as it looks to reduce the nation’s exposure to “volatile” global energy markets.

Chief executive Martin Pibworth said the Perth-headquartered group was delivering on its five-year, £33bn investment plan as he unveiled an adjusted operating profit of just under £2.24bn for the year to the end of March, 8 per cent lower than the year before but in line with expectations.

Overall, the group invested more than it made in adjusted operating profit over the year, which it said underlined its focus on building “critical national infrastructure”.

Work being undertaken by SSE on electricity pylons.

The record £3.6bn of investment contributed £9.7bn of gross value added (GVA) - a measure of economic output - to the UK economy and supported more than 83,000 jobs, according to the FTSE-100 giant.

SSE said major projects were now “well under way” across electricity networks, renewables and flexible generation, helping to “unlock homegrown energy and reduce long-term system costs”.

Pibworth told investors: “This year has demonstrated the strength and resilience of SSE’s integrated model. We met all our financial and operational targets and delivery of our fully-funded £33bn investment plan to 2030 is well under way.

“That investment is central to long‑term value creation. It is reducing the UK’s exposure to volatile global energy markets and providing more stable, predictable returns through the energy transition, while supporting economic growth and cutting bills for consumers.

“By operating our business efficiently and optimally, while accelerating electrification and building energy infrastructure to unlock homegrown renewables, we are strengthening energy security and lowering system costs over time.”

Renewables profits rose by around 4 per cent during the year, despite poorer weather conditions, while profits in the group’s Flexibility business - including gas‑fired and multifuel generation and energy supply - were around 15 per cent lower, reflecting market conditions.

SSE, which employs more than 14,500 people, is recommending a final dividend of 47.3p per share, taking the full-year dividend to 68.7p, an increase of 7 per cent.

Pibworth added: “With record levels of capital investment in line with our plan and strong momentum across the group, we are well placed to deliver sustainable growth and value creation for our shareholders while helping to build a more affordable and secure energy system for the UK.”

The group’s adjusted earnings per share of 153.5p were towards the upper end of guidance and said to reflect continued strong operational performance during a period of “macro-economic uncertainty”. Its earnings targets of between 168p and 193p per share for 2026/27 (adjusted for equity issuance) and between 225p and 250p for 2029/30 are unchanged.

Full year 2026/27 capital expenditure is expected to significantly increase to more than £5bn, with net debt continuing to be “comfortably” within the group’s recently reaffirmed strong investment grade credit ratings.

Hargreaves Lansdown analyst Aarin Chiekrie noted: “Looking ahead, we think SSE is stepping into a new era of growth. The group’s set to spend £33bn over the five years to 2030 upgrading its energy infrastructure, marking a 300 per cent uplift in its investment levels over the prior five years.”

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