SSE upgraded its full-year outlook for a second time in two months after its gas and hydro-power plants benefited from the market volatility caused by the war in Ukraine.
Russia’s invasion has sent energy markets from coal to electricity to new highs this year even after the records during last year’s energy crisis. The Scottish utility’s gas and hydro plants, which can produce when called upon, offset a decline in renewables generation.
“The war has had significant consequences for energy markets and policy, contributing to historically high and volatile prices,” the company said in a statement. “SSE has so far been served well by its prudent hedging approach and has successfully managed any increasing credit and collateral requirements.”
SSE expects full-year adjusted earnings per share to be in a range of 92p (€1.10) to 97p, it said. More favourable weather conditions mean that the shortfall in output from renewable sources is expected to be 12 per cent compared with a previous expectation of 19 per cent for the year.
The company's mixed portfolio of assets has also been one of the pillars in its defence against activist investor Elliott Investment Management, which has been calling for the company to split its renewables and grid businesses.
SSE also said it doesn’t have any energy supply contracts with Russian counterparties, and is “ceasing trading” activities with Russian companies.
SSE will present full-year results on May 25th. – Bloomberg
