SSE Airtricity owner ups earnings outlook on soaring energy prices

The company has raised prices four times across Ireland and the UK in just over a year.

Shares in British energy utility SSE – which operates in Ireland as SSE Airtricity – briefly rose to a record high after the company upgraded its full-year outlook for a second time in two months as some of its power plants benefited from record market volatility and soaring prices.

Russia’s invasion of Ukraine has sent energy markets, from coal to electricity, to new highs this year on top of the records during last year’s energy crisis. 

The Scottish utility’s gas and hydro plants, which can produce a stable supply of electricity, offset a decline in intermittent renewables generation.

SSE rose as much as 1.7% to a record after the company said it expects full-year adjusted earnings per share to be in a range of between 92 pence and 97 pence (€1.15). 

More favourable weather conditions mean that the shortfall in output from renewable sources is expected to be 12%, compared with a previous expectation of 19% for the year.

SSE also said it doesn’t have any energy supply contracts with Russian counterparts and is “ceasing trading” activities with Russian companies. Last month SSE said it was targeting better-than-expected annual earnings on the back of rising energy prices. 

The company has raised prices four times across Ireland and the UK in just over a year. The SSE Airtricity division made a €3.4m loss in the first half of its financial year, with customer numbers dipping slightly.

- Additional reporting Bloomberg