Profits fire up at SSE, chief executive to step down

13th Nov 2024 07:01

(Sharecast News) - SSE's long-standing chief executive is to stand down, the blue chip confirmed on Wednesday, as it posted a jump in half-year earnings.

The electricity and gas utility said Alistair Phillips-Davies, 57, had decided to retire in 2025 after 11 years at the helm.

He joined Southern Electric in 1997, becoming chief executive in 2013 and playing a key role in reshaping the company as SSE, including a focus on clean energy. Phillips-Davies said he was "extremely proud" of what the company has achieved in the last decade.

The update came as SSE posted adjusted operating profits of £860.2m in the six months to September end, up on last year's £693.2m. On a reported basis, operating profit rose 40% to £902.8m.

Earnings per share jumped nearly 35% to 49.8p, while pre-tax profits rose 26% to £714.5m.

Within that, electricity networks saw operating profits surge 50%, as lower transmission revenues were comfortably offset by multi-year inflation catch-up through distribution tariffs.

Renewables profits also rocketed, to £335.6m from £86.8m.

SSE said the results were in line with expectations.

Looking to the full year, it noted that operating profits in its transmission division would be lower year-on-year. However, profits in distribution and renewables were forecast to be "significantly" higher.

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.

"Our unique position gives us exceptional growth opportunities and clear targets that will deliver long-term value to shareholders and society."

John Manzoni, chair, said: "Under [Alistair's] leadership, the group has transformed into a genuine transition leader, sharpening its focus on networks, renewables and flexibility while successfully entering new markets."