SCOTTISH Hydroelectric owner SSE has said it has made good progress on a range of big renewable energy projects in recent months amid challenging conditions.
The Perth-based giant said it expects the fallout from the pandemic to wipe around £200 million off earnings in the current financial year, while lockdowns have caused logistical complications.
However, SSE said it was well positioned for the future after passing a number of important milestones on the road to transforming itself from a conventional energy firm into a leader in the renewables sector.
READ MORE: Windfarm giant in talks to buy Scottish sites as it plans rapid expansion
In an update on trading in the nine months to December 31, the company noted that it won the backing required from financiers in November to proceed with the giant Dogger Bank windfarm in the North Sea. It then sold a 10 per cent stake in the venture to Italian giant Eni for £202.5m.
SSE noted that construction work started on the Viking windfarm on Shetland and the Seagreen windfarm off Angus during the period.
The company also completed its long-planned exit from the North Sea oil and gas business by selling its production operation to Viaro Energy in December, in a £120m deal.
READ MORE: Cut-price exit from North Sea by heavyweight bodes ill for the area
In October, SSE sold stakes in big waste-to-power plants in Yorkshire to an infrastructure investment fund for almost £1bn in cash.
The group said it has appointed banks to review options for the sale of all or part of its stake in the SGN gas networks business it owns with investors such as the Ontario Teachers Pension Plan.
SSE finance director Gregor Alexander said:“Our robust business model is mitigating the impact of coronavirus, our disposal programme is proceeding at pace and at Dogger Bank we have shown yet again that we can develop opportunities and create value from world-class assets.”
SSE said renewables output was around five per cent below plan in the nine months to December 31, “mainly due to wind resource”.
It expects the impact of coronavirus on operating profit in the year to March 31 to be towards the middle of the £150m to £250m range estimated in June. Impacts have included reduced demand for energy and higher levels of customers’ bad debts.
READ MORE: SSE boss defends treatment of Scottish supply chain amid windfarm row
The group said it has appointed banks to review options for the sale of all or part of its stake in the SGN gas networks business, which it owns with investors such as the Ontario Teachers Pension Plan.
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