Q1 slightly ahead of expectations, EPS guidance remains ‘at least 120p’ Q1 performance has slightly exceeded SSE’s expectations, with renewables output slightly ahead of plan (105% of planned output), driven by onshore wind and conventional hydro. Thermal output is also slightly up vs. the corresponding period last year. No change to FY23 guidance, with SSE expecting to report full year adjusted earnings per share of at least 120p and adjusted capital expenditure and investment in excess of £2.5bn. Our adjusted EPS estimate for FY23E is 138.2p, with our capex estimate at £2.53bn. SSE Transmission stake disposal under way, REMA welcomed The formal process for the disposal of a 25% minority stake in SSEN Transmission is now under way, in line with the narrative outlined in May’s FY22 results. SSE has targeted an agreed sale by the end of the calendar year, with completion following receipt of regulatory approval. SSE has welcomed the recent BEIS Review of Electricity Markets Arrangements (REMA) consultation, believing that an orderly consultative process is the right way to deliver the necessary investment. This chimes with our view that REMA is unlikely to see knee-jerk rushed changes.