British renewable power generator and network operator SSE Plc posted a 30% rise in interim pre-tax profits and increased its spending plans on Wednesday despite a drop in renewable power output.
The company turned its focus to renewable power and networks after selling its household energy supply and services arm to OVO Energy at the beginning of 2020. It pledged on Wednesday to invest 12.5 billion pounds ($16.83 billion) to 2026 in clean energy projects.
Under the investment plan, which represents 1 billion pounds of additional capital expenditure per year over its previous spending programme, SSE will expand its renewable power five fold to 50 terrawatt hours a year by 2031, it said.
Adjusted pre-tax profits for the six months to Sept. 30 2021 were 174.2 million pounds, up from 133.9 million pounds in the same period last year.
Profits were boosted by higher volumes and revenue allowances in its regulated network business and a strong performance from non-core businesses such as its gas storage site, the company said, offsetting a fall in renewable power generation.
Renewable power output was down 25% compared with the same period last year, which SSE said was due to “exceptionally unfavourable weather conditions,” such as low wind speeds.
The 1.225 billion pounds sale of SSE’s 33% stake in Scotia Gas Networks (SGN) to Ontario Teachers’ Pension Plan Board and Brookfield Super-Core Infrastructure Partners is expected to be complete within the 2021/22 financial year.
($1 = 0.7429 pounds)
(Reporting by Susanna Twidale; Editing by Jan Harvey and Edmund Blair)
