In a recent earnings call, SSE plc (LON: SSE .L) CEO Alistair Phillips-Davies provided an overview of the company's financial performance and future prospects. SSE reported a 4% decrease in adjusted operating profit to £2.
4 billion for the fiscal year 2023/24, with strong network and renewable segments performance balancing out weaker areas. The company's focus remains on safety, with the launch of Scotland's first immersive safety training center. SSE is confident in meeting its earnings guidance and delivering value, with a target EPS of 175p to 200p by 2027.
Despite increased net debt, which stood at £9.4 billion, SSE is well-positioned to fund its £20.5 billion Net Zero Acceleration Program Plus (NZAP Plus) investment and capitalize on the energy transition and electrification.
Key Takeaways SSE's adjusted operating profit declined by 4% to £2.4 billion in the 2023/24 fiscal year. The company has a compound earnings growth target of 13% to 16% per annum.
SSE's net debt increased to £9.4 billion but remains within a comfortable range. The Net Zero Acceleration Program Plus is fully funded, and the company is set to benefit from the shift to electrification.
SSE is confident in achieving an EPS target of 175p to 200p by 2027. Company Outlook SSE expects increased operating profit in Distribution and a decrease in Thermal & Gas Storage profitability due to lower power prices. Timing differences in Transmission will lead to lower profits, but renewables should see a sign.