UK energy group SSE (SSE.L) posted an operating profit of nearly £2 billion in its preliminary results for the first quarter of 2025, a 25% decline compared to the same period last year, as the company absorbed exceptional charges and adjusted its investment strategy.
The reported profit includes £309.7 million in exceptional costs, most notably a non-cash impairment of £249.5 million related to SSE’s Southern Europe Renewables pipeline. The company cited sector-wide delays in permitting and grid connections for the impairment, noting that these challenges have slowed project development across the region.
Reflecting broader macroeconomic pressures, SSE said it would reduce its five-year capital investment forecast by £3 billion to approximately £17.5 billion. Around 60% of this revised investment is expected to go towards regulated networks, with roughly 30% directed at renewable energy projects.
Chief Executive Alistair Phillips-Davies said the company is adapting to shifting market conditions while maintaining a focus on long-term value. “We have met our financial goals for the year and evolved our investment plans to reflect the changing world around us—leaning into the opportunities presented in networks and redoubling our capital discipline across our energy businesses,” he said.
Despite the impairment, SSE highlighted continued progress in key areas. Construction of all three phases of the Dogger Bank offshore wind farm remains on schedule, with Phase A set for completion in the second half of 2025.
The company also secured new onshore wind capacity through recent government auctions. This includes 130MW from the Cloiche project under the UK’s sixth Contract for Difference round (AR6) and 60MW from the Drumnahough joint venture in Ireland’s fourth Renewable Electricity Support Scheme (RESS 4).
Phillips-Davies added that SSE remains confident in its long-term earnings trajectory: “This opportunity, alongside our balance sheet strength and the increased proportion of index-linked revenue we anticipate, gives us every confidence in our FY27 target of 175–200p earnings per share and sustainable growth to 2030 and beyond.
