Shares of SSE plc (LON: SSE) are trading up this morning after the energy company raised its guidance for adjusted earnings on a per share basis.
SSE plc to post record investment this year
The British multinational now expects to earn at least £1.60 ($1.97) a share in its current financial year. Its previous guidance was for £1.50 per share instead.
On Thursday, SSE plc also said that its flexible generation plant has more than offset the weakness in its renewables business. In the press release, Finance Director Gregor Alexander said:
Strong performance leaves us well positioned to continue our significant investment programme and we will update the market with more detail in May.
The London-listed firm is on track to invest a record more than £2.5 billion this year, he added. SSE plc stock is up 7.0% for the year at writing.
SSE plc to cut its dividend payout next year
SSE plc reiterated today that it will pay 85.7 pence a share of dividend in fiscal 2023 but will shrink the payout to 60 pence per share next year to fuel growth.
Afterwards, though, the dividend will increase by 5.0% a year at least. The power company is confident that it’s adjusted net debt lowered to under £9.0 billion in the financial year ending March 31st.
Our balanced business model has performed well in a volatile year, helping to ensure security of supply.
At writing, Wall Street currently has a consensus “overweight” rating on the energy stock. Even the lowest price target on SSE plc stock is about £22 that suggests another 23% upside from here.
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