- SSE
- 25 October 2024 09:46:11
Source: Sharecast
"SSE has an attractive set of networks and renewable assets," the bank said. "However, we are increasingly concerned around the deployment of its offshore wind fleet and see risks of further delays, which could impact EPS and/or returns.
"With our more cautious view on long term gas (and therefore power) prices, we also see downside risk to merchant earnings, which continue to account for 50% of the renewable output."
Citi noted that together with thermal volumes, merchant exposure is about 15% of group EBIT.
"As a result, we see downside risk to 2026/07 consensus EPS," it said. "Longer term, we question the ability of SSE’s balance sheet to fund its planned growth and affordability of UK energy bills without a correction in commodity prices or further policy intervention."
At 0910 BST, the shares were down 0.7% at 1,833.72p.