SSE has upgraded FY22 adjusted EPS guidance to a range of 92-97p/share, up from at least 90p/share previously. Q4 renewables output sees the output shortfall vs. plan narrow to 12% from 19% at 31st December, while the good performance of flexible thermal/hydro continues in volatile markets. Our FY22E for adjusted EPS is 93.3p. There is no change to the dividend policy, and year-end net debt is expected to be below £9bn (INVe £8.7bn). BUY. Weather conditions have improved since SSE’s Q3 trading statement on 8th Feb, with the shortfall in renewables output vs. plan now 12% vs. 19% for the nine months to 31st December 2021. The good performance from flexible thermal and hydro plant has continued in volatile market conditions, demonstrating the need for such assets. Against this backdrop, SSE has increased FY22 adjusted EPS guidance to a range of 92-97p vs. at least 90p previously. Our estimate for FY22 adjusted EPS is 93.3p, within SSE’s guided range. SSE still intends to recommend a full-year dividend of 81p per share plus RPI for 2021/22 and continues to target an RPI linked dividend in 2022/23, followed by a rebase to 60p in 2023/24 and at least 5% increases in 2024/25 and 2025/26. SSE also remains on track to report full-year 2021/22 capex in excess of £2bn (we have £2.01bn) as it executes its strategic £12.5bn Net Zero Acceleration Programme. The disposal of Scotia Gas Networks has completed, and SSE expects adjusted net debt to be below £9bn at 31st March. Our estimate is £8.7bn. FY22 results will be published on 25th May.