By Scott Wright

PERTH-based SSE has lifted its profits forecast for the second time in two months against the backdrop of soaring energy prices.

The energy giant cited weather conditions as it reported the shortfall in output from its renewable sources had decreased from 19 per cent below plan for the nine months to December 31 to around 12% below plan at March 22. And it said its flexible thermal and hydro plant has continued in volatile market conditions, “demonstrating its value to the energy system”.

SSE now expects full-year adjusted earnings per share to be in the range of 92p to 97p per share, with the upgrade coming shortly after it lifted profit expectations to at least 90p per share from at least 83p in early February. It still intends to recommend a full-year dividend of 81p per share plus RPI for 2021/22.

SSE said its “prudent hedging approach” has served it well amid the disruption caused by Russia’s assault on Ukraine.

It received nearly £1.3 billion on completion of the sale of its stake in Scotia Gas Networks.

Shares closed up 16.5p at 1,708p.

Finance director Gregor Alexander said: “SSE’s integrated and balanced business model has performed well in turbulent market conditions, with expected financial performance now broadly aligning with our internal projections at the beginning of the year. At the same time, we have made further progress with the SGN (Scottish Gas Networks) disposal and we have a number of attractive options to support accelerated electrification of the economy.

“Our significant investment programme will make a huge contribution towards both net zero and energy security whilst publication of our Net Zero Transition Plan gives stakeholders more detail on how we will decarbonise our businesses.”