By Joe Hoppe
SSE PLC said Friday that it has raised fiscal 2023 adjusted earnings per share expectations to more than 150 pence ($1.86) from at least 120 pence, reflecting the strength of its business mix and certainty from strong operational performance.
The FTSE 100 energy company said it is on track to report a capital expenditure in excess of GBP2.5 billion for the fiscal year.
The net debt to earnings before interest, taxes, depreciation and amortization ratio is expected to be well below the target of 4.5 times for the year after the completion of a minority stake sale of SSEN Transmission in November.
The company also said total renewables output in the nine months ended Dec. 31 rose to 7,065 gigawatt hours from 6,076 gigawatt hours a year earlier, but missed targets due to project delays and unseasonably calm and dry weather.
The board proposed a full-year dividend of 85.7 pence a share, plus retail price index. However, the dividend would be rebased to 60 pence in fiscal 2024, to support investment and growth plans, and then increased by at least 5% a year.
"SSE is performing well in a shifting and volatile energy landscape, underlining the strength of our balanced business mix and the quality of our assets, and we are well placed to deliver a strong financial performance for the full year," Finance Director Gregor Alexander said.
Write to Joe Hoppe at joseph.hoppe@wsj.com