SSE, a leading energy company in the UK, has announced that its chief executive, Alistair Phillips-Davies, will step down next year after more than a decade at the helm. This comes as the company reported a significant increase in its half-year earnings, with profits rising by over 25%.
The chair of SSE, Sir John Manzoni, praised Phillips-Davies for his leadership, highlighting how he expanded the company’s core operations in the UK and Ireland while also pursuing international growth. Manzoni assured that the transition to new leadership will be “smooth and orderly,” and Phillips-Davies will stay on until a replacement is appointed.
In financial news, SSE revealed that its adjusted pre-tax profits for the six-month period ending in September reached £714.5 million, marking a 26.4% increase. This surge was largely attributed to favorable weather conditions as well as an increase of over 1 gigawatt in renewable energy capacity, which propelled operating profits in that sector to rise nearly four times, with power output climbing approximately 45%.
The company’s electricity networks division also saw adjusted operating profits jump by 50%, driven by increased distribution tariffs that reflect several years of inflation.
SSE, recognized as one of the UK’s foremost renewable energy companies, produced 5.4 terawatt-hours of renewable electricity during this six-month period. This amount is sufficient to power over 1.6 million homes for a year, primarily through onshore wind sources.
Currently, SSE is in the midst of a substantial £20 billion investment plan spanning five years. This plan includes crucial projects such as connecting Shetland to the UK energy grid for the first time and establishing a 2GW subsea cable originating from Peterhead in Scotland and heading to North Yorkshire.
Phillips-Davies expressed confidence in the company’s alignment with the Labour government’s vision for a zero-carbon electricity system by 2030, which aims to double the capacity of onshore wind, triple solar power, and quadruple offshore wind. He mentioned that the “main markets” are becoming increasingly attractive for their growth potential.
Looking forward, SSE anticipates completing the first stage of the Dogger Bank project, which is set to be the largest offshore wind farm in the world at 3.6GW, by the second half of next year. The second phase of the project is progressing well, and despite some delays in turbine installation, projected returns for all three project phases have exceeded internal targets.