SSE (SSE)

[Dod101]

Transaction in Own Shares.

SSE plc (the "Company") announces that it has purchased the following number of its ordinary shares of 50 pence on the London Stock Exchange through Morgan Stanley and Co. International ("MSI"). These purchases were made as part of the Company's £125 million share buyback programme as announced on 28 September 2022. All shares were purchased from MSI as an "on exchange" transaction subject to the rules of the London Stock Exchange and in accordance with the authority granted by shareholders at SSE's Annual General Meeting on 21 July 2022 and Chapter 12 of the Listing Rules.

https://www.investegate.co.uk/sse-plc-- ... 00032899F/

They seem to like doing this lately. I'd toy with adding to my SSE holdings myself, but I might have enough already, and the forthcoming dividend reduction puts me off tbh. Happy to continue holding SSE though.

Ian.

It is not that they 'like doing this' They are simply following their previously announced plan to buy back £125 million of shares to cover part of the final dividend paid as scrip dividend. These buybacks are of no significance (and to me a waste of the Company's resources)

Dod

[idpickering]

Transaction in Own Shares.

SSE plc (the "Company") announces that it has purchased the following number of its ordinary shares of 50 pence on the London Stock Exchange through Morgan Stanley and Co. International ("MSI"). These purchases were made as part of the Company's £125 million share buyback programme as announced on 28 September 2022. All shares were purchased from MSI as an "on exchange" transaction subject to the rules of the London Stock Exchange and in accordance with the authority granted by shareholders at SSE's Annual General Meeting on 21 July 2022 and Chapter 12 of the Listing Rules.

https://www.investegate.co.uk/sse-plc-- ... 00032899F/

They seem to like doing this lately. I'd toy with adding to my SSE holdings myself, but I might have enough already, and the forthcoming dividend reduction puts me off tbh. Happy to continue holding SSE though.

Ian.

It is not that they 'like doing this' They are simply following their previously announced plan to buy back £125 million of shares to cover part of the final dividend paid as scrip dividend. These buybacks are of no significance (and to me a waste of the Company's resources)

Dod

I hear you Dod thanks. My comment was with my tongue firmly in my cheek lol.

Ian.

[daveh]

Transaction in Own Shares.

SSE plc (the "Company") announces that it has purchased the following number of its ordinary shares of 50 pence on the London Stock Exchange through Morgan Stanley and Co. International ("MSI"). These purchases were made as part of the Company's £125 million share buyback programme as announced on 28 September 2022. All shares were purchased from MSI as an "on exchange" transaction subject to the rules of the London Stock Exchange and in accordance with the authority granted by shareholders at SSE's Annual General Meeting on 21 July 2022 and Chapter 12 of the Listing Rules.

https://www.investegate.co.uk/sse-plc-- ... 00032899F/

They seem to like doing this lately. I'd toy with adding to my SSE holdings myself, but I might have enough already, and the forthcoming dividend reduction puts me off tbh. Happy to continue holding SSE though.

Ian.

It is not that they 'like doing this' They are simply following their previously announced plan to buy back £125 million of shares to cover part of the final dividend paid as scrip dividend. These buybacks are of no significance (and to me a waste of the Company's resources)

Dod

If they are just going to buy back the shares they offer as a scrip dividend, why bother offering a Scrip dividend, just offer a drip scheme for those who want to reinvest the dividend - wouldn't that be easier and cheaper for SSE?

[Dod101]

Transaction in Own Shares.

SSE plc (the "Company") announces that it has purchased the following number of its ordinary shares of 50 pence on the London Stock Exchange through Morgan Stanley and Co. International ("MSI"). These purchases were made as part of the Company's £125 million share buyback programme as announced on 28 September 2022. All shares were purchased from MSI as an "on exchange" transaction subject to the rules of the London Stock Exchange and in accordance with the authority granted by shareholders at SSE's Annual General Meeting on 21 July 2022 and Chapter 12 of the Listing Rules.

https://www.investegate.co.uk/sse-plc-- ... 00032899F/

They seem to like doing this lately. I'd toy with adding to my SSE holdings myself, but I might have enough already, and the forthcoming dividend reduction puts me off tbh. Happy to continue holding SSE though.

Ian.

It is not that they 'like doing this' They are simply following their previously announced plan to buy back £125 million of shares to cover part of the final dividend paid as scrip dividend. These buybacks are of no significance (and to me a waste of the Company's resources)

Dod

If they are just going to buy back the shares they offer as a scrip dividend, why bother offering a Scrip dividend, just offer a drip scheme for those who want to reinvest the dividend - wouldn't that be easier and cheaper for SSE?

I totally agree. It is simply a waste of money for them to roundtrip the issue of new shares for the scrip dividend and the buy most of them back afterwards. I complained to HSBC about that and could not have been the only one because some time later they cancelled the option for a scrip dividend. Might write to the Co Sec of SSE along the same lines.

Dod

[idpickering]

Transaction in Own Shares.

SSE plc (the "Company") announces that it has purchased the following number of its ordinary shares of 50 pence on the London Stock Exchange through Morgan Stanley and Co. International ("MSI"). These purchases were made as part of the Company's £125 million share buyback programme as announced on 28 September 2022. All shares were purchased from MSI as an "on exchange" transaction subject to the rules of the London Stock Exchange and in accordance with the authority granted by shareholders at SSE's Annual General Meeting on 21 July 2022 and Chapter 12 of the Listing Rules.

https://www.investegate.co.uk/sse-plc-- ... 00084507F/

Ian.

[Itsallaguess]

These buybacks are of no significance

I totally agree Dod...

I can just about see the relevance of posting RNS buy-back announcements on this site where companies might initially announce that they're launching a large buy-back programme with what are often substantial company-held funds, but I see absolutely no value at all in attracting people to open up company-specific threads that have got new posts in them, only to then regularly find that many new posts are then just highlighting mundane and granular 'Transaction in new shares' purchases within those previously-announced schemes...

Cheers,

Itsallaguess

[idpickering]

These buybacks are of no significance

I totally agree Dod...

I can just about see the relevance of posting RNS buy-back announcements on this site where companies might initially announce that they're launching a large buy-back programme with what are often substantial company-held funds, but I see absolutely no value at all in attracting people to open up company-specific threads that have got new posts in them, only to then regularly find that many new posts are then just highlighting mundane and granular 'Transaction in new shares' purchases within those previously-announced schemes...

Cheers,

Itsallaguess

You're entitled to your opinion of course. I reserve the right to put these items here on Company News, which imho is exactly what they are. If I'm wrong I'm sure our mods would've told me already. That is not the case thus far. If you're not interested in the post, don't read it...simples. In fact, I will report this post and ask for mod opinion on this.

Ian.

[BullDog]

These buybacks are of no significance

I totally agree Dod...

I can just about see the relevance of posting RNS buy-back announcements on this site where companies might initially announce that they're launching a large buy-back programme with what are often substantial company-held funds, but I see absolutely no value at all in attracting people to open up company-specific threads that have got new posts in them, only to then regularly find that many new posts are then just highlighting mundane and granular 'Transaction in new shares' purchases within those previously-announced schemes...

Cheers,

Itsallaguess

You're entitled to your opinion of course. I reserve the right to put these items here on Company News, which imho is exactly what they are. If I'm wrong I'm sure our mods would've told me already. That is not the case thus far. If you're not interested in the post, don't read it...simples. In fact, I will report this post and ask for mod opinion on this.

Ian.

Don't bother. It's fine. IMO, of course.

[Dod101]

These buybacks are of no significance

I totally agree Dod...

I can just about see the relevance of posting RNS buy-back announcements on this site where companies might initially announce that they're launching a large buy-back programme with what are often substantial company-held funds, but I see absolutely no value at all in attracting people to open up company-specific threads that have got new posts in them, only to then regularly find that many new posts are then just highlighting mundane and granular 'Transaction in new shares' purchases within those previously-announced schemes...

Cheers,

Itsallaguess

You're entitled to your opinion of course. I reserve the right to put these items here on Company News, which imho is exactly what they are. If I'm wrong I'm sure our mods would've told me already. That is not the case thus far. If you're not interested in the post, don't read it...simples. In fact, I will report this post and ask for mod opinion on this.

Ian.

It is not worth getting all het up about but these SSE buybacks are of no significance whatever. Not even people who dislike buybacks could have any interest in the matter.

Dod

[idpickering]

Transaction in Own Shares

SSE plc (the "Company") announces that it has purchased the following number of its ordinary shares of 50 pence on the London Stock Exchange through Morgan Stanley and Co. International ("MSI"). These purchases were made as part of the Company's £125 million share buyback programme as announced on 28 September 2022. All shares were purchased from MSI as an "on exchange" transaction subject to the rules of the London Stock Exchange and in accordance with the authority granted by shareholders at SSE's Annual General Meeting on 21 July 2022 and Chapter 12 of the Listing Rules.

https://www.investegate.co.uk/sse-plc-- ... 00045904F/

This may be of interest to some hereabouts, and as has been mentioned, others not so, and that's cool too.

Ian.

[csearle]

Moderator Message:

I can just about see the relevance of posting RNS buy-back announcements on this site where companies might initially announce that they're launching a large buy-back programme with what are often substantial company-held funds, but I see absolutely no value at all in attracting people to open up company-specific threads that have got new posts in them, only to then regularly find that many new posts are then just highlighting mundane and granular 'Transaction in new shares' purchases within those previously-announced schemes...

I wholeheartedly agree with this. Please only post transaction-in-own-shares type news in broad accordance with the view above, reserving this board for news of more significance. Trivial posts will probably be removed without further comment. Thanks. - Chris.

[idpickering]

Moderator Message:
I wholeheartedly agree with this. Please only post transaction-in-own-shares type news in broad accordance with the view above, reserving this board for news of more significance. Trivial posts will probably be removed without further comment. Thanks. - Chris.

Message received Chris. I respect your view, and thank you for your input/guidance.

Ian.

[idpickering]

Half Year Report.

NAVIGATING VOLATILITY TO DELIVER CRITICAL ENERGY INFRASTRUCTURE AND A STRONG PERFORMANCE

· Investing at record levels, far greater than profits, in projects that will enhance energy security while creating green jobs and supporting local communities.

· Reporting adjusted earnings per share of 41.8p, in line with pre-close guidance, reflecting strength of balanced, integrated business model and importance of assets for system security.

· Making strategic progress on SSE's £12.5bn Net Zero Acceleration Programme, which is the optimal pathway for SSE to deliver long term growth as the UK's clean energy champion.

· Strong balance sheet with prudent use of debt markets, meaning minimal long-term debt refinancing expected until FY25 and a strong liquidity position for cash collateral requirements.

· In the context of the prevailing volatile, complex and challenging market conditions, SSE's guidance of adjusted earnings per share for 2022/23 of at least 120p remains unchanged. Also continue to expect 2022/23 capital investment (including acquisitions) in excess of £2.5bn and leverage well below the target 4.5x net debt to EBITDA ratio.

· Total Recordable Injury Rate reduced to 0.15 from 0.16 in the same period last year.

And later;

An interim dividend of 29.0p per ordinary share (2022: 25.5p) has been proposed and is due to be paid on 9 March 2023 to those shareholders on the SSE plc share register on 13 January 2023. The proposed interim dividend has not been included as a liability in these financial statements. A scrip dividend will be offered as an alternative.

https://www.investegate.co.uk/sse-plc-- ... 00045278G/

Ian

[Dod101]

I have commented on the losses arising from their hedged positions contained in these results on the HYP Board. Hedging works both ways of course and this time it has certainly been against them particularly in the renewables side, but they seem not too concerned about this. This has always seemed to me to be a well run business but there is just to me an element of smoke and mirrors about it. having to pay large amounts in compensation to unwind the hedging contracts would not have been in the plan, especially at these very high prices, but they airily say that the costs are well covered by increased borrowings and selling parts of the business. I see that they are proposing selling minority stakes in their core businesses of transmission and distribution, not it would seem directly related to hedging but to release funds for further investment in renewables.

Not sure what to think about this. I think it is a reasonable income play but at all sure about being a growth share. Share price down 1.64% as I write this.

Dod

[monabri]

"Investing at record levels, far greater than profits, in projects that will enhance energy security while creating green jobs and supporting local communities."

Clearly a message to Mr Sunak et al regarding imposition of possible windfall taxes!

To the casual reader ( ie me!), the message - based on the info above- seems to read " no surprises to report " and here's an increase in the dividend.

One concern, Net debt to EBITDA >4.5X - and yet the dividend is increased ....significantly, percentage wise!

(The issue about hedging is not highlighted in the snippet headlines above but might increase debt pressure further....the money has to come from somewhere .....and yet there is a 13% divi increase, is that wise?).

[Dod101]

"Investing at record levels, far greater than profits, in projects that will enhance energy security while creating green jobs and supporting local communities."

Clearly a message to Mr Sunak et al regarding imposition of possible windfall taxes!

To the casual reader ( ie me!), the message - based on the info above- seems to read " no surprises to report " and here's an increase in the dividend.

One concern, Net debt to EBITDA >4.5X - and yet the dividend is increased ....significantly, percentage wise!

(The issue about hedging is not highlighted in the snippet headlines above but might increase debt pressure further....the money has to come from somewhere .....and yet there is a 13% divi increase, is that wise?).

I have been thinking about this as well. They are keeping to their dividend plan and I suspect it is a bit like some ITs which plan a dividend based on the NAV with little regard for the actual trading results. In other words, it is basically just another cost, and I think that is how SSE sees the dividend, not like a 'normal' trading company where the dividend is a share of the profits of the business.

The hedging problems show that renewables, certainly windfarms, are not a one way ticket to profits.

Dod

[tjh290633]

I think that it is worth looking further into the report, particularly at the Cash Flow statement. The bottom line is:

Cash and cash equivalents at the end of period (2023) £289.3m (2022) £232.7m

TJH

[idpickering]

Interim Dividend Timetable.

https://www.investegate.co.uk/sse-plc-- ... 36026707G/

Ian.

[idpickering]

SSE AGREES SALE OF 25% STAKE IN TRANSMISSION BUSINESS FOR 1.465BN TO UNLOCK FURTHER GROWTH.

SSE plc ("SSE") has reached agreement to sell a 25% minority stake in its electricity transmission network business, SSEN Transmission - which operates under its licenced entity, Scottish Hydro Electric Transmission plc - to Ontario Teachers' Pension Plan Board (Ontario Teachers') in a transaction that will help unlock significant growth in both the Transmission business and across the wider SSE Group.

The transaction follows SSE's announcement on 17 November 2021 of its intention to extend the partnering approach that has been successful in SSE Renewables to its core electricity distribution and transmission network assets through the sale of minority stakes in both businesses as part of SSE's fully funded Net Zero Acceleration Programme (NZAP). The stake sale process for SSE's electricity distribution business is expected to commence in early 2023.

The transaction is based on an effective economic date of 31 March 2022, and total cash proceeds of £1,465m for the 25% stake are expected at completion. The transaction is expected to complete shortly.

As at 31 March 2022, SSEN Transmission had a RAV of £4,155m (with RAV at 31 March 2023 forecast to be almost £5bn) and net debt and debt-like items of £2,488m, including £780m of SSE shareholder loans. These shareholder loans to SSEN Transmission will remain in place and are expected to be replaced with external debt as they mature.

This successful transaction reflects both the current value and significant growth potential of SSEN Transmission as one of Europe's fastest growing transmission networks. SSE continues to believe SSEN Transmission has a central role to play in meeting net zero and bolstering the UK's energy security by unlocking the vast renewable resources in the north of Scotland and transporting that homegrown low carbon power to demand centres further south.

https://www.investegate.co.uk/sse-plc-- ... 00045677H/

Ian.

[idpickering]

SSEN DISTRIBUTION RESPONSE TO RIIO-ED2 FINAL DETERMINATION.

SSEN Distribution, part of SSE plc, has today received Ofgem's Final Determination for the RIIO-ED2 electricity distribution price control, which will run from 1 April 2023 to 31 March 2028.

The final determination, which follows detailed engagement with Ofgem and stakeholders, allows SSEN Distribution £3.59bn of baseline total expenditure for the five-year period against an initial business plan ask of £4bn. This reflects positive movement from the Draft Determination in June, with baseline allowances increasing by £300m, and represents a 21% increase in allowed expenditure compared to an equivalent period in RIIO-ED1.

Ofgem is also allowing a headline regulatory cost of debt of 3.01% in SEPD and 3.07% in SHEPD and cost of equity of 5.23% real (CPIH) indexed.

SSEN will now carefully examine the full details of Ofgem's Final Determination to gauge the extent to which it correctly represents a fair and balanced outcome for customers and investors. This assessment will run into next year and will take place alongside continued preparations and mobilisation for delivery of the new business plan from April.

https://www.investegate.co.uk/sse-plc-- ... 19550541I/

Ian.