SSE turns focus on renewables as retail supply margins suffer

Bloomberg

SSE Plc is to split off its green generation into a separate business known as SSE Renewables under the UK utility’s increased focus on low-carbon generation.
The new company will have 4 gigawatts of capacity by March including onshore and offshore wind, flexible hydro, run-of-river hydro and pumped storage. That compares with 7.3 gigawatts of conventional assets.
We’re starting to get a better sense of the shape of SSE after it hives off its UK retail power arm in a deal with RWE AG’s Npower. After that transaction completes, SSE will focus on renewables and remove itself from the UK retail power business where margins are slimming rapidly with the government price cap. Adjusted earnings per share fell 40 percent, which isn’t a surprise after SSE warned on September 12 that natural gas prices coupled with persistent hot weather over the summer would cut earnings for the year. The company said it will keep its full-year dividend.
Efforts to limit utility earnings in the UK are starting
to bite and will keep falling next year.