Shares of SSE plc, the Perth-based electricity infrastructure giant, rose as much as 11% to a record high on Wednesday after it announced “a transformational, fully-funded, £33bn five-year investment plan” — with most of it to be invested in regulated UK electricity networks.
SSE, the biggest listed firm run from Scotland, also announced an equity issue to raise £2 billion to help fully fund the investment programme.
The Perth group said the £33 billion investment plan to 2029-30 represents a trebling of investment over the five-year period, with around 80% or £27 billion to be invested in regulated UK electricity networks and around 20% or £6 billion selectively in renewables and system flexibility “all delivering attractive growth and returns.”
Further, SSE published half-year results “in line with expectations, reflecting typical seasonal averages and with full year performance expectations remaining unchanged.”
Profit before tax for the six months to September 30 fell 31% to £586.3 million.
SSE shares rose to an all-time high around £22 to give the firm a stock market value of more than £24 billion.
SSE CEO Martin Pibworth said: “This Transformation for Growth investment plan is built on a once-in-a-generation opportunity to upgrade the UK electricity network and build a cleaner, more secure and more affordable energy system.
“The accelerated investment is underpinned by secure UK Government regulatory frameworks and will unlock much-needed growth across the wider economy and support thousands of jobs over the course of the plan.
“Our world is rapidly electrifying, and we need to build, connect and transport ever greater volumes of homegrown power to homes and businesses to power the digital age.
“SSE’s multi-decade-long track record of delivering major electricity assets means it is strongly positioned to respond to this critical infrastructure investment opportunity and, in doing so, underpin the Group’s position as one of Europe’s largest electricity infrastructure companies.
“Our focused, disciplined and fully-funded investment plan will transform the domestic energy system and improve lives, whilst creating sustainable value for our shareholders and society for decades to come.”