Morningstar

SSE Earnings: Earnings Growth Target Is Raised on Higher Investments and Power Prices

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Securities In This Article
SSE PLC
(SSE)

No-moat SSE SSE released fiscal 2023 results above expectations and set 2024 and 2027 guidance well above ours due to higher investments and power prices assumptions. The firm will pay a GBX 96.7 dividend on fiscal 2023 earnings, in line with the average annual U.K. retail price index rate, that is 12.9% higher than in fiscal 2022. SSE unexpectedly raised its dividend growth target from at least 5% to between 5% and 10% after the rebase to GBX 60 in fiscal 2024. This reflects an improving financial headroom thanks to higher earnings growth than expected.

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About the Author

Tancrede Fulop, CFA

Senior Equity Analyst
More from Author

Tancrede Fulop, CFA, is a senior equity analyst, Europe, for Morningstar*. He covers main European utilities and renewables. His coverage includes the largest diversified utilities like Iberdrola or Enel, pure renewables developers like Orsted and regulated utilities like National Grid.

Before joining Morningstar in 2017, Fulop worked for Schlumberger Business Consulting as a financial and economist analyst. He wrote a piece on the consequences of the COP 21 for the oil & gas industry and conducted financial & operational due diligences of OFS companies. Previously, he was a senior research associate covering European utilities for Raymond James from 2011 to 2015. He built up power price forecasts.

Fulop holds a bachelor’s degree in economics and management and a master’s degree in finance from the University Paris II Pantheon-Assas. He also holds the Chartered Financial Analyst® designation.

* Morningstar Holland BV (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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