LONDON, Nov 16 (Reuters) – UK power producer and network operator SSE Plc (SSE.L) saw interim profit before tax increased 30% on Wednesday and increased its spending plans on Wednesday despite a decline in renewable electricity generation.
The company focused on renewable energy and grids after selling its household energy supply and services division to OVO Energy in early 2020. It pledged on Wednesday to invest £ 12.5 billion ($ 16.83 billion) in clean energy projects by 2026.
As part of the investment plan, which represents an additional £ 1 billion annually over its previous spending program, SSE will quintuple its renewable electricity to 50 terawatt hours per year by 2031, it said.
Adjusted profit before tax for the six months ended September 30, 2021 was £ 174.2 million, compared to £ 133.9 million for the same period last year.
Profits were boosted by higher volumes and revenue entitlements in its regulated grid business and strong performance from non-core businesses like its gas storage site, the company said, offsetting a decline in renewable electricity production.
Electricity generation from renewable energies fell by 25% compared to the same period of the previous year, which, according to SSE, was due to “exceptionally unfavorable weather conditions” such as low wind speeds.
The sale of SSE’s 33% stake in Scotia Gas Networks (SGN) to the Ontario Teachers’ Pension Plan Board and Brookfield Super-Core Infrastructure Partners for £ 1.225 billion is expected to be completed within fiscal 2021/22. Continue reading
($ 1 = 0.7429 pounds)
Reporting by Susanna Twidale; Adaptation by Jan Harvey and Edmund Blair
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