SSE profits soar in line with energy prices as windfall tax expansion looms
Energy giant SSE reported a three-fold bump in its profits for the first six months of trading this year.
This was powered by soaring gas and electricity prices this year, alongside robust performance across its thermal power plants and gas storage businesses.
The FTSE 100-listed power generation specialist unveiled monster pre-tax earnings of £559m in its half-year report, up from £174.2m over the same period last year.
This follows a surge in wholesale prices in the UK spurred by the conflict in Ukraine has driven up electricity costs and put the squeeze on household budgets – with The Treasury also scrambling to fill a £60bn fiscal black hole .
Chancellor Jeremy Hunt is widely expected to beef up the windfall tax to cover electricity generators, going further than the revenue limit proposed under the former Truss government.
SSE is one of the largest renewable energy and network operators in the UK.
Group chief Alistair Phillips-Davies said despite “unprecedented volatility” the firm had also doubled down on domestic green investments in line with both the UK’s energy security strategy and its own net zero programme.
He said: “We are investing around £12.5bn in the five years to March 2026, with further opportunities that could take the total to over £25bn this decade in the UK and Ireland alone.
“This direct investment primarily in offshore wind, UK electricity networks and flexible thermal will create the technologies to support long-term energy security.”
SSE also confirmed its adjusted earnings targets of at least 120p remains unchanged.
Despite the strong update, shares were down 1.27 per cent at close of play yesterday on the London Stock Exchange, ahead of the expected tax hike tomorrow.
Earlier this month, Cornwall Insight argued it would be disproportionate to expand the windfall tax to electricity generators.
It suggested generators had proved more vulnerable to rising interest rates and easing commodity prices than oil and gas operators..