The following is a summary of the SSE Plc (SSEZF) Q4 2024 Earnings Call Transcript:
Financial Performance:
SSE reported an adjusted operating profit of £2.4 billion, a decrease of 4% from the previous year.
The adjusted earnings per share (EPS) were 158.5p, indicating performance in the upper end of predicted guidance.
With an investment of £2.5 billion this year, the company's adjusted net debt increased to £9.4 billion.
The company proposed a full-year dividend of 60p per share.
Earnings from Renewables' operating increased by 48% to £833 million.
SSE remains on track for its 2027 earnings guidance and predicted significant returns from Thermal & Gas Storage in the future.
Business Progress:
SSE saw the full operation of the Seagreen offshore wind farm which resulted in a net capacity increase of 527 megawatts.
The company reported growth in earnings from increases in allowed revenues under RIIO T2 and a positive timing impact from tariffs.
SSE is on track to deliver full Dogger Bank's capacity by H1 2025. Dogger Bank phase is expected to generate around 6 terawatt hours of clean electricity annually.
Future developments will focus on optimizing data and processes and increasing value in distribution.
SSE aims to provide 10 gigawatts of renewables by 2026 through its strategic net zero first investments.
Significant investments are planned into the mid-2030s, underpinned by growth prospects in transmission and distribution networks.
Collaboration with local partners is being pursued for attractive auctions to produce up to 800 megawatts of onshore wind in the next decade.
SSE plans to increase capital expenditures in support of Microsoft Cloud growth and increased demand for the AI platform.
Despite future political uncertainties, the company maintains its focus on achieving net zero energy.
Increased profits from transmission business improved the quality of earnings as it provides more predictability compared to the merchant pieces.
SSE confirmed plans for increased capital in the transmission business and continued building of its renewable capacity.
The company confirmed its commitment to invest in larger capital projects and grow through the NZAP Plus initiative.
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