UK water utility Pennon's profit dries up as extreme weather takes toll

<html xmlns=""><head><title>UPDATE 2-UK water utility Pennon's profit dries up as extreme weather takes toll</title></head><body>

FY profit plummets 88%

To invest 750 mln stg on environmental targets

Shares down 2.3%

Adds detail on water sector, shares in paragraph 9

June 1 (Reuters) -British water utility Pennon Group's PNN.L annual profit plummeted 88%, the company said on Thursday, squeezed by the driest summer in decades, extreme rainfall and harsh cold winter at a time when it grapples with high costs.

The results come as the British water industry faces scrutiny from lawmakers, regulators and public over under-investments in infrastructure and the dumping of raw sewage.

"As summertime nears, it's touch-and-go whether reservoir levels will be sufficient to keep customers' supplies running at full flow. If not, Pennon could find itself in the regulator's firing line," Hargreaves Lansdown analyst Aarin Chiekrie said in a note.

Pennon said on Thursday it planned to invest 750 million pounds ($947 million) over two years to improve its environmental standards and water treatment methods.

That follows peer Severn Trent's SVT.L announcement last week of capital investment plans of up to 1 billion pounds. United Utilities UU.L also put forward its "biggest environmental programme yet" in October.

Pennon said underlying profit before tax for the year ended March 31 fell to 16.8 million pounds, from 143.5 million pounds a year earlier.

The near-term earnings had been impacted by the drought in the South West, which led to increased levels of operating costs and capital expenditure, the company said.

The company in September had said it expected power costs to almost double during the year.

Shares in Pennon are down 41% from record highs hit in August 2021 and have underperformed peers. The stock fell 2.3% in morning trade on Thursday.

($1 = 0.7923 pounds)

Reporting by Radhika Anilkumar in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila


免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。