SSE launches £33bn network plan, raises £2bn equity

SSE PLC launched a 33 billion British Pounds five-year investment plan and will raise approximately 2 billion British Pounds in an equity sale to help fund it, the company said Wednesday.

The plan, running to 2030, will see around 80% of the capital, or 27 billion British Pounds, invested in its regulated UK electricity networks, marking a significant acceleration of its strategy to focus on that part of the business.

The remainder will be selectively invested in renewables and flexible power generation projects, according to the company.

Chief Executive Martin Pibworth said the plan will "help build a cleaner, more secure and more affordable energy system."

"Upgrading the UK electricity network offers a once-in-a-generation opportunity for accelerated investment that is underpinned by secure UK Government regulatory frameworks," Pibworth said in a statement.

The program will be funded by cash from operations, an increase in debt, around 2 billion British Pounds in asset sales, and the concurrent 2 billion British Pounds share placing, the company said.

The announcement came as SSE reported that adjusted earnings per share fell 29% to 36.1 pence for the six months ended Sept. 30, which it said was in line with expectations.

Adjusted capital investment for the period rose 22% to 1.6 billion British Pounds.

SSE reaffirmed its full-year performance expectations.