SSE has reaffirmed its commitment to investing approximately £20 billion in clean energy infrastructure by 2027, following the release of strong interim financial results for the six months ending September 2024. The energy giant also revealed that its Chief Executive, Alistair Phillips-Davies, will retire in 2025 after 27 years with the company, including 11 years as CEO.
Strong Financial Performance
SSE’s interim results highlighted a 35% increase in adjusted earnings per share to 49.8p, driven by higher contributions from its Electricity Networks and Renewables divisions. Key achievements include:
- Electricity Networks: Adjusted operating profits rose to £504 million, up from £336 million, supported by multi-year inflation catch-up through distribution tariffs.
- Renewables: Adjusted operating profit surged to £326 million from £87 million, bolstered by a 1GW+ increase in operating capacity and favourable weather conditions.
- Thermal: The division reported adjusted operating losses of £44 million, a significant improvement from the £226 million loss in the same period last year, due to more stable market conditions.
SSE invested £1.3 billion in clean power infrastructure during the first half of the year, with key projects including the completion of the 443MW Viking onshore wind farm and the 260km Shetland HVDC subsea link. The company also began work on Eastern Green Link 2, Great Britain’s largest transmission project.
Alistair Phillips-Davies said: “This is a strong set of interim results including delivery of higher-quality earnings and the mission-critical infrastructure that shows SSE is at the heart of the clean energy transition.”
CEO Alistair Phillips-Davies to Retire
As reported on Scottish Business News, in a significant leadership change, Alistair Phillips-Davies announced his intention to retire in 2025. He will remain in his role until a successor is appointed to ensure a smooth transition. Under his leadership, SSE has transformed into a leader in energy transition, focusing on networks, renewables, and flexibility.
Speaking about his retirement, Phillips-Davies said: “Being Chief Executive of SSE is an immense privilege and I am extremely proud of what we have achieved over the past decade… I remain fully committed to growing the business until my successor is found.”SSE’s Chair, Sir John Manzoni, praised Phillips-Davies’ tenure: “Alistair has been an exceptional Chief Executive… He has assembled a world-class team around him and created a legacy of critical clean electricity infrastructure.”The recruitment process for his successor will be led by Sir John Manzoni and supported by independent recruitment specialists KornFerry.
Future Outlook
SSE remains focused on delivering its clean power strategy as it continues with its substantial investment programme across renewables, electricity networks, and flexible power plants. The company expects full-year results to remain in line with previous guidance.
Phillips-Davies added: “SSE will be a key delivery partner with our ~£20bn investment programme… Our unique position gives us exceptional growth opportunities and clear targets that will deliver long-term value to shareholders and society.”With these developments, SSE is well-positioned to play a pivotal role in achieving the UK Government’s mission for Clean Power by 2030 while continuing to deliver sustainable value for both shareholders and society.
