(Bloomberg) -- SSE Plc’s chief executive officer Alistair Phillips-Davies is set to retire next year as the company reaches the halfway point in its five-year £20.5 billion ($26.1 billion) green investment plan.
Phillips-Davies will remain until a successor is appointed, according to a statement on Wednesday. The British power generator also announced a delay to it’s flagship Dogger Bank A offshore wind farm as installing the turbines is taking longer than expected. The project will now be completed in the second half of 2025.
Investors will be looking out for more details on the cost impact of the delay, according to RBC Europe Ltd.
The UK has an ambitious plan to build out offshore wind capacity and eliminate emissions from power generation by 2030. Delays to wind projects could put that goal at risk and make it more challenging for the government to deliver on a promise to lower bills. Achieving a tripling of offshore wind capacity by 2030 is difficult on a short time line and delays could make the task even bigger.
SSE reported adjusted earnings per share at 49.8 pence for the first six months compared to 37 pence last year. Full year guidance for operating profit remained unchanged with SSE saying it will give specific full year EPS guidance later in the financial year.
Profit from SSE’s local power grid distribution business soared by 188% to £346.3 million compared to a year earlier. Higher wind speeds also meant adjusted operating profit at the company’s renewable business increased 287% from the prior period.
SSE’s thermal power unit swung to a loss in the first six months compared to a profit of £312.9 million last year as higher gas prices impacted profitability of burning gas for power generation. The company’s gas storage business made a loss in the first six months but this narrowed compared to a year earlier. SSE expects gas storage to reverse and return to profit in the second half of the financial year.
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