SSE Energy has cut its dividend to shareholders to 60p per share for the full year, in a bid to continue its growth-enabling plan.

The group said that in the year to 31 March 2024, it had delivered £2.5bn in investment in "critical" national energy infrastructure, including starting on the construction on the eastern green link 2 subsea transmission cable, which is the largest in the UK, and is working at full power at Seagreen, the world’s deepest fixed offshore wind farm.

In this period, SSE saw its operating profit drop by 4% to £2.4bn, with revenue also falling from £12.5bn to £10.5bn.

While its profit before tax dropped marginally from £2.18bn to £2.17bn, the group said that this reached the top end of its guidance.

Equity research analyst at Quilter Cheviot, Tom Gilbey, said: "SSE’s financial results for 2024 were slightly better than expected. Although it did not provide specific guidance for 2025, it did reiterate it was on track for its 2027 guidance. Key highlights include an earning per share (EPS) for 2024 of 158.5p which is a 5% decrease compared to last year but still 3% better than expected. Adjusted operating profit decreased by 4% to £2.5bn and the dividend for 2024 was 60p.

"SSE invested £2.5bn in critical national energy infrastructure over the year, including starting construction on the Eastern Green Link 2 subsea transmission cable, reaching full power at the Seagreen offshore windfarm and progressing the Dogger Bank offshore wind project, although this project is slightly delayed due to weather and vessel availability."

In SSE’s outlook, it said that it will continue to focus of its long-term sustainable financial performance, through the implementation of its five-year plan.

It expects to deliver over £20bn of capital investment on LOTI and ASTI projects over the rest of the decade.

In the short-term, SSE said that its capital expenditure and investment is expected to significantly increase to over £3bn, in what it said is a "ramping up of project delivery" during the 2024/25 financial year.

Furthermore, its net debt to EBITDA ratio is expected to be towards the lower end of the 3.5-4 times targeted range.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said: "SSE managed to electrify investors by delivering full-year profits at the top at the top end of its target. The transition to becoming a renewable energy powerhouse has continued at pace, with a large chunk of its £2.5bn worth of investment directed into greener assets last year. That figure’s set to jump to over £3bn this year as the speed of project completions ramps up.

"This investment looks achievable, but it’s set to stretch the balance sheet, with net debt levels likely to be pushed up to the lower end of the group’s 3.5-4.0 times cash profits (EBITDA) target. While a moderate amount of debt isn’t a bad thing, especially for a business with such reliable revenue, it does add pressure to keep delivering."

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