Markets will be assessing SSE’s first set of results under new chief executive Martin Pibworth for any steer on net zero, the electricity grid build-out and pricing.
The Perth-based FTSE 100 company has been a big player in wind farm development and is building new power lines to boost capacity on the grid.
Mr Pibworth took over from Alistair Phillips-Davies, who stood down in July after 12 years in the post. Last month, in one of his statements, he said expansion of the grid was vital to enable the benefits of renewables to be fully exploited.
“One of the reasons our bills have been so high is that the cost of electricity is linked to the price of gas, which is one of the most expensive fuels in the system.
“But renewables are setting the wholesale price more and more of the time, bringing down the influence of gas on the power price.
“And as more renewables come online, like the world’s largest wind farm we’re in the process of commissioning at Dogger Bank, this effect is only going to increase.”
Among other points of focus for analysts will be the dividend which SSE cut last year to fund the development of its renewable assets. The plan now is to grow the dividend by 5% to 10% a year out to 2027. The first-half payment a year ago was 21.2p.
The shares are up by just under 6% in the past year and sit close to their all-time highs.
Rolls-Royce
Hargreaves Lansdown says the trading update this week will be closely watched for signs that positive momentum from the first half has been sustained through the third quarter.
“Market forecasts point to full-year underlying revenue growth of around 11% to £19.5 billion, while underlying operating profits are expected to grow at a faster pace of 32% to £3.3 billion,” it notes.
Vodafone
Vodafone’s releases half-year year figures and Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the company was heading into the results “with an optics problem”.
He added: “Core markets like the UK and Germany have been under pressure, and while turnaround efforts are underway, progress has been slow.
“The company has responded with bold moves, job cuts, the completed merger with Three UK, and divestments in Spain and Italy, but investors want evidence these changes are starting to pay off.”
DIARY
Tuesday 11 November
- First-half results from Vodafone
- BRC UK retail sales
- UK unemployment, wage growth and job vacancies
Wednesday 12 November
- First-half results from Experian, SSE
- Trading update from Flutter Entertainment, Taylor Wimpey
Thursday 13 November
- First-half results from 3i, Burberry, QinetiQ, B&M European Value Retail, Premier Foods, United Utilities
- Trading updates or quarterly results from Aviva, Persimmon and Rolls-Royce
- UK GDP growth
- UK construction, manufacturing and industrial production growth
- US inflation (US Government shutdown permitting)
Friday 14 November
- First-half results from Land Securities
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