Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. SSE plc
  6. News
  7. Summary
    SSE   GB0007908733


Real-time Estimate Quote. Real-time Estimate Cboe Europe - 01/20 04:20:57 am
1575.75 GBX   +0.53%
01/19SSE : acquires its first 30MW solar project in its role as the UK's clean energy champion
01/18Today on Wall Street: Changes
01/18HSBC Downgrades SSE To Hold From Buy, Lowers PT
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

SSE Plans Stake Sales, Dividend Cut to Fund GBP12.5 Billion Investment Plan; Shares Fall -- Update

11/17/2021 | 04:14am EST

By Jaime Llinares Taboada

Shares in SSE PLC fell Wednesday morning after the company unveiled plans to cut the dividend and sell stakes in its electricity network divisions to speed up investment on energy infrastructure through fiscal 2026.

The energy company's Net Zero Acceleration Program includes a capital investment plan of 12.5 billion pounds ($16.79 billion) to 2026, it said. This represents a 65% increase in annual investment on the previous plan, or GBP1 billion a year. The money allocated to expand the renewables business will account for 40% of the total, and has more than doubled from the previous program.

To fund it, SSE plans to rebase the dividend to 60 pence a share in fiscal 2024, the company said. This compares with plans to pay 81 pence plus inflation for the current year ending March 31, 2022. SSE said that the dividend cut will be followed by annual growth of at least 5% to March 2026, and that it expects to pay at least 350 pence a share across the five years to fiscal 2026.

In addition, the capital-expenditure plan will also be funded through the sale of a 25% stake in both SSEN Transmission and SSEN Distribution businesses, the company said.

In the six months ended Sept. 30, SSE reported that those two divisions contributed GBP335.0 million to the group's GBP376.8 million adjusted operating profit, as renewable power generation was hurt by unfavorable weather, it said.

"The big question for the market in advance of today was how this [capital-expenditure plans] would be funded. SSE has gone for the tried and tested route of asset disposals, and has confirmed market fears that this would come with a dividend cut," RBC Capital Markets said.

Shares at 0839 GMT were down 5.4% at 1,569 pence.

SSE said the investment plan will add 4 gigawatts of renewable capacity, doubling current capacity, and increase the asset value of its power networks to GBP9 billion--net of assumed 25% stake sales.

As a result, the company said it expects to increase its adjusted earnings per share at a compound annual growth rate of 5% to 7% to March 2026.

"Today's announcement means SSE will maximize its long-term potential and capture growth opportunities during a critical time for the energy sector, strengthening and growing its core businesses, creating jobs, delivering for wider society and offering attractive shareholder returns," Chief Executive Alistair Phillips-Davies said.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

11-17-21 0414ET

Stocks mentioned in the article
ChangeLast1st jan.
SSE PLC 0.57% 1573.5 Delayed Quote.-4.94%
All news about SSE PLC
01/19SSE : acquires its first 30MW solar project in its role as the UK's clean energy champion
01/18Today on Wall Street: Changes
01/18HSBC Downgrades SSE To Hold From Buy, Lowers PT
01/18ANALYST RECOMMENDATIONS : AirBnb, Alibaba, Aviva, ConocoPhillips, Dollar General, Gap, Und..
01/17SSE : Marubeni-CIP win right to develop giant floating offshore wind farm in ScotWind succ..
01/17SSE Awarded New Offshore Wind Lease in Scotland, Boosting Renewables
01/17SSE Consortium Gets Seabed Rights for Up to 2.6-GW Offshore Wind Project in Scotland
01/17Scottish wind sale nets nearly $1 billion with Shell, BP among winners
01/17Integrated Wind Solutions Begins Development Of Construction Service Operation Vessel
01/13SSE's UK Gas Storage Site Experiences Fire, Gas Trip
More news
Analyst Recommendations on SSE PLC
More recommendations
Sales 2022 7 221 M 9 839 M 9 839 M
Net income 2022 1 127 M 1 535 M 1 535 M
Net Debt 2022 8 560 M 11 663 M 11 663 M
P/E ratio 2022 18,2x
Yield 2022 5,35%
Capitalization 16 586 M 22 607 M 22 601 M
EV / Sales 2022 3,48x
EV / Sales 2023 3,42x
Nbr of Employees 11 865
Free-Float -
Duration : Period :
SSE plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SSE PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 20
Last Close Price 1 567,50 GBX
Average target price 1 769,84 GBX
Spread / Average Target 12,9%
EPS Revisions
Managers and Directors
Alistair Phillips-Davies Chief Executive Officer & Executive Director
Gregor Alexander Finance Director & Executive Director
John Alexander Manzoni Chairman
Sue Bruce Independent Non-Executive Director
Peter John Lynas Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
SSE PLC-4.94%22 607
NEXTERA ENERGY-11.54%162 053
ENEL S.P.A.-3.34%78 552
IBERDROLA, S.A.-3.98%70 058