SSE PLC reiterated its full-year earnings guidance despite a drop in quarterly renewable energy output, as the company pivots its investment strategy towards its electricity networks.
The British energy company said in May it was cutting its five-year investment plan by 3 billion British Pounds to 17.5 billion British Pounds, reducing spending on renewables by 1.5 billion British Pounds while increasing its focus on regulated networks.
The shift was reflected in its first-quarter performance, where renewables output fell 4% compared to the prior year due to unfavorable weather, the company said on Thursday.
In contrast, adjusted investment in its transmission and distribution networks rose nearly 70% to around 500 million British Pounds in the quarter, according to the company.
SSE confirmed it is on track to deliver adjusted earnings per share of 175 pence to 200 pence for the fiscal year ending March 2027.
The company said it welcomed a UK government decision to retain a national pricing system for wholesale electricity, which it said sends a strong investment signal.
"SSE continues to deliver thanks to our resilient and balanced business, coupled with our disciplined approach to capital investment," Chief Financial Officer Barry O'Regan said in a statement.
"At the same time, further clarity on growth opportunities for the Group are emerging, with positive policy developments giving us even greater confidence in our ability to create value from our high-quality project pipeline."
The company also announced a final investment decision on a new 300 million euro power station in Ireland.
The update was released ahead of the final Annual General Meeting for outgoing Chief Executive Alistair Phillips-Davies.
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