SSE Enters Japanese Offshore-Wind Market; Forecasts 1st Half Adjusted EPS Drop

By Jaime Llinares Taboada

SSE PLC said Wednesday that it has signed a deal to enter the Japanese offshore-wind market, and forecast lower adjusted earnings per share for the first half of the fiscal year.

The Scotland-based energy company has agreed to create a joint ownership company with Japanese renewable-energy company Pacifico Energy to pursue offshore-wind projects in the country. The deal involves the acquisition by SSE of an 80% stake in an offshore-wind development platform from Pacifico for $208 million.

SSE will acquire a number of early-stage offshore-wind development projects, which are expected to use a mixture of fixed and floating technology. The two most advanced projects have already secured grid access, the company said.

In addition, SSE warned that the performance of its renewables business has been affected by market volatility and unfavorable weather in the first half of the fiscal year, with power output 32% below plan in the period to Sept. 22. This represents a 11% shortfall on forecast total generation for the whole year.

SSE expects to report adjusted earnings per share of between 7.5 pence and 10 pence for the six months ending Sept. 30. This would be down from 11.9 pence a year earlier.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

September 29, 2021 02:38 ET (06:38 GMT)

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