Performance
against our strategy

We use a number of financial and non-financial measures to track progress against our strategy of developing, operating and owning energy-related assets and businesses.

“2018/19 presented challenges... but the Company has emerged with a clear purpose and opportunities for the future.”
Alastair Phillips-Davies Chief Executive

Quote

SSE delivered a full-year dividend of 97.5 pence per share; and made good progress in its programme of capital and investment expenditure in support of future value creation. This is already reflected in the Regulatory Asset Value (RAV) of its energy networks and in its capacity for generating renewable electricity.

Charts

Dividend Per Share (pence)
2019
97.5
2018
94.7
2017
91.3
Strategic relevance:

The first financial objective of SSE’s strategy is to remunerate shareholders’ investment through the payment of dividends.

Performance:

In 2018/19, SSE delivered on the first step in its five-year dividend plan.

Adjusted and Reported Earnings Per Share (£m)
2019
67.1
135.2
2018
98.8
64.3
2017
104.3
144.4
Adjusted
Reported
Strategic relevance:

In order to provide a meaningful measure of underlying financial performance over the medium-term, SSE focuses on adjusted EPS.

Performance:

SSE’s Earnings Per Share of 67.1p reflects mainly the loss incurred by Energy Portfolio Management.

Adjusted and Reported profit before tax (£m)
2019
725.7
1,370.6
2018
1,179.3
864.4
2017
1,276.5
1,599.4
Adjusted
Reported
Strategic relevance:

SSE’s objective is to earn a sustainable level of profit over the medium term.

Performance:

Adjusted PBT reflects the operating loss incurred by Energy Portfolio Management.

Adjusted and Reported operating profit by segment (£m)
Wholesale
191.9
652.1
Networks
830.2
738.5
Retail
122.0
122.0
Adjusted
Reported
Strategic relevance:

The Wholesale, Networks and Retail segmental structure reflects how SSE’s businesses were managed in 2018/19.

Performance:

The majority of SSE’s Operating Profit is derived from renewable energy and regulated electricity networks.

“SSE’s long-term strategic focus on renewable energy and regulated networks is clear.”
Gregor Alexander Finance Director
Adjusted capital and investment expenditure (£m)
2019
1,422.9
2018
1,503.0
2017
1,726.2
Strategy relevance:

SSE applies strict financial discipline that supports investment in assets that provide returns that are greater than the cost of capital.

Performance:

Investment Expenditure in 2018/19 of £1.42bn included more than £1bn investment in renewable energy and regulated electricity networks.

Adjusted EBITDA (£m)
2019
1,868.6
2018
2,291.8
2017
2,297.6
Strategic relevance:

Extracting interest, tax, depreciation and amortisation from earnings provides a useful measure of SSE’s operational performance.

Performance:

Adjusted EBITDA for the core renewable energy and regulated electricity networks businesses was more than £1.5bn, or 83% of Group total.

Investment and capital expenditure by segment (£)
Wholesale
542.4
Networks
684.7
Retail
123.6
Strategic relevance:

The main focus of SSE’s investment and capital expenditure is on low-carbon renewable energy and regulated electricity networks.

Performance:

SSE is one year into a five-year, £6bn spending programme, 70% of which is expected to be devoted to renewables and networks.

Regulated Asset Value (£m)
2019
8.729
2018
8,304
2017
7,679
Strategic relevance:

SSE has an ownership interest in five economically-regulated networks, each of which has a Regulated Asset Value or RAV.

Performance:

Completion of the Caithness- Moray link helped take Transmission RAV to more than £3.25bn.

"In 2018 we took the important decision to create SSE Renewables, in line with our strategy to give greater focus to our renewable energy assets, operations and developments."
Martin Pibworth Energy Director
Economic contribution in UK/Ireland
2019
£8.9bn
€689m
2018
£8.6bn
€806m
2017
£9.3bn
€779m
UK
Ireland
Strategy Relevance

SSE depends on a healthy and thriving economy to enable its business success, which is why it calculates the value it adds to UK and Irish GDP each year.

Performance

SSE has added a total of £75.4bn and €6.8bn (in 2018/19 prices) of value to the UK and Irish economies since 2011/12.

Taxes paid in the UK/Ireland
2019
£404m
€14.6m
2018
£484m
€22.6m
2017
£385m
€16.5m
UK
Ireland
Strategic relevance:

Taxes support the public services everyone relies on. When companies do well, they should share their success with society through the payment of taxes.

Performance:

Total taxes paid reduced significantly in 2018/19. This was driven by lower profits earned yet capital allowances received as a result of significant ongoing investment.

Renewable output (inc. pumped storage) (GWh)
2019
9,779
2018
9,428
2017
7,955
Strategic relevance:

Renewables are core to SSE’s business strategy which is centred around the low-carbon transition.

Performance:

2018/19 was a record year for SSE Renewables, with output increasing to 9,780GWh. This was mainly driven by an increase in average generation capacity as Stronelairg and Beatrice began to operate.

Total recordable injury rate per 100,000 hours worked (employees and contractors combined)
2019
0.16
2018
0.20
2017
0.22
Strategic relevance:

Safety is SSE’s number one core value, and everybody in the company operates to the safety license of ‘if it’s not safe, we don’t do it’.

Performance:

2018/19 is SSE’s best ever safety performance making significant progress in achieving its target of halving its TRIR by 2020/21 since 2017/18.

Carbon intensity of electricity generated (gCO2e per kWh)
2019
284
2018
305
2017
302
Strategic relevance:

As a significant generator of electricity, SSE has a responsibility to reduce its carbon intensity in line with climate science.

Performance:

The carbon intensity of the electricity generated reduced by 7% this year, contributing to the company’s target to halve its carbon intensity by 2030.

Jobs supported in UK and Ireland
2019
284
2018
305
2017
302
Strategic relevance:

SSE relies on the people that work for it in order to operate, with its activities supporting jobs in both urban and rural areas.

Performance:

Across its operations in the UK and Ireland, SSE supports 101,170 and 4,080 jobs respectively.