Maybe we don't need renewable energy after all, there is still plenty to burn in the world... |
Yes another low of the year |
Could do with a bit of a jump start here.
Very disappointing atm.
ng out of favour too.
Suet |
P/E of 9 is too low for a defensive utility with renewables/growth. |
Make that 2+ years! |
Another lnew low of year.. |
If the renewable market does not get a profitable return on CAPEX then it will not attract funding and any aspirations of net zero will get kicked further down the endless road. HMG needs to make it attractive to invest or it's optimistic targets will get pushed further back in its face. |
My 1st tranch. |
Bought some too. Average down. Probably will keep going south |
Was activist investor on board here ? Anyone? |
Lowvof year or near? |
Pull-back also because govt U-turns on new O+G licenses? |
 this might be the reason for teh sell off.
If it comes to pass, then electricity prices for SSE's existing wind generation in Scotland will fall.. a lot!
Viz "While it might also spur the development of new capacity, generators fear the shift could upend the investment case for existing projects."
The UK’s energy regulator has shifted its position on a controversial market reform, with Ofgem Chief Executive Officer Jonathan Brearley now backing dividing the country into different pricing zones.
The UK is reviewing the current structure that has a single wholesale price for electricity. It could recommend splitting the country into zones, with cheaper tariffs for areas, such as Scotland, with lots of wind farms and higher rates in places where demand is stronger.
While Ofgem has previously not taken a strong stance — wary of disrupting ongoing investment in renewable capacity — Brearley told the Montel News podcast that shifting to a zonal model would be better for consumers.
“It is not economically credible for British consumers to leave it as it is,” Brearley said.
Some electricity retailers and the UK’s grid operator also back zonal pricing, saying it would deliver on the Labour government’s election promise to cut bills and give the British economy a boost. While it might also spur the development of new capacity, generators fear the shift could upend the investment case for existing projects.
The government, which is targeting a clean power system by 2030, is expected to make a decision later this year. |
Sharp sell off.
Why? |
Looks like the results will come in slightly below consensus of 163.5p, but 2027 still on target. I was astonished at the growth of thermal - emphasising how much we rely on gas in a cold or windless winter. |
.
· 2024/25 full year adjusted earnings per share expected to be between 154 - 163 pence
· Renewables output up 26% year-on-year for the first three quarters, reflecting the impact from capacity additions and variable weather conditions
· The drive to clean power continues to gather pace, including publication of SSEN Transmission's RIIO-T3 Business Plan
This Trading Statement updates on expectations for 2024/25 full year earnings, as well as strategic progress and operational performance for the period ending 31 December 2024.
TRADING UPDATE
It is expected that 2024/25 adjusted earnings per share will be between 154 - 163 pence, reflecting good operational performance against variable weather conditions in particular over the third quarter. Business unit operating profit expectations remain unchanged.
Generation output from SSE Renewables over the first nine months was 26% higher than the same period in prior year, reflecting the impact from capacity additions and weather conditions. January has seen the renewables fleet continue to experience periods of variable weather conditions.
In electricity networks, the businesses have continued to deliver strong operational performance to date.
The Group's full-year earnings outturn remains subject to a number of factors over the remainder of the fourth quarter such as weather, market conditions, and plant performance.
SSE plc will provide an update on performance for the final months of the year in its Notification of Closed Period statement on 2 April 2025.
strategic PROGRESS
In December 2024, SSEN Transmission published its RIIO-T3 Business Plan which set out a bold blueprint to deliver at least £22bn of critical grid infrastructure in the five years to 2031, enabling the UK and Scotland's energy security and net zero goals. The plan also highlights an additional £9.4bn of potential future expenditure, which could bring total investment over the price control period to around £32bn. The business expects to have completed the submission of its remaining ASTI projects into planning within the coming months.
SSE Renewables continues with delivery of its pipeline, with first power achieved at the 101MW Yellow River onshore wind farm and a financial investment decision taken on 208MW Strathy South onshore wind farm. Turbine installation continues on the first phase of Dogger Bank offshore wind farm, with completion still expected in the second half of calendar year 2025. And in December, it was confirmed that a second vessel has been reserved from 2026 to support turbine installation across the second and third phases of the project.
SSE Thermal has taken a Final Investment Decision on construction of Tarbert Next Generation power station in Co Kerry. Backed by a 10-year capacity agreement and scheduled for completion in late 2027, this 300MW sustainable biofuel plant will support energy security and a low-carbon future in Ireland. This follows news of 522MW of de-rated electricity generation capacity secured in the Ireland T-4 2028/29 Capacity Auction, at a significantly increased clearing price of €149,960/MW.
Barry O'Regan, Chief Financial Officer, said:
"We are pleased to report good operational performance during the quarter and, more recently, we were able to provide a swift and effective response to Storm Eowyn, with our teams expertly managing widespread network disruption. Looking further ahead, our resilient and balanced business mix continues to give us confidence in achieving targeted adjusted earnings per share of between 175 - 200p in 2026/27.
"Thanks to our focus on renewables, networks and system flexibility, we are a key delivery partner in the UK's Clean Power Action Plan. As we look to the opportunities presented by decarbonisation our focus remains on capital discipline, strategic delivery and the efficient operation of our value-creating assets." |
Not here as well, here's another relevant link for you!
[Re previous post now removed by advfn]
Report spam here: |
FWIW and take your pick :-
Deutsche Bank Research cuts SSE price target to 1,900 (2,000) pence - 'buy'
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Citigroup raises SSE to 'neutral' (sell) - price target 1,712 (1,708) pence |
FWIW :- UBS raises SSE to 'buy' (neutral) - price target 1,970 (1,935) pence |
The move to net zero will always play second fiddle to economic forces, so it remains a well meant aspiration that will cost governments too many votes. Except in China where they don't have to worry about votes ... |
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