Pennon's half year results will be announced on
Key Highlights
Trading in line with management expectations
Water resilience investment delivering demonstrable improvement in the water resource position across the South West - all Temporary Use Bans now lifted
On track to deliver significant K7 environmental investment plan with capex of over
Strategically well positioned to continue to deliver a cumulative doubling of RORE base returns over K7 to 2023/24
Investment in renewable energy generation progressing in line with expectations - accelerating our Net Zero 2030 commitment
Submitted
Gearing expectation for K8 remains within our well-established range of 55-65%.
This plan will create 2000 jobs in our communities, alongside our plan for 1000 apprenticeships and graduates. At the same time, we will do more with less, as we drive efficiency and innovation, with a nature first principle, keeping unwelcome bill increases as low as possible.
We have tested our plan with thousands of customers, and they are confident this is the right deal for right now.'
Robust K7 (2025-30) platform
We continue to build momentum as we plan for the next regulatory period, as demonstrated by
Water resilience
Climate change has shown how unpredictable weather patterns can be, and the impact they can have on our operations. Whilst the South West region still remains in official drought status, as declared by the
Our investment plans to further diversify water resources and boost resilience, including the development of Cornwall's first de-salination facility, are ongoing and progressing well.
Delivering on our significant K7 environmental investment programme
Work to deliver on our largest environmental improvement programme to date continues at pace, with total investment for 2023/24 expected to be in excess of c.
Our c.
As the roll out of our WaterFit interventions continue, we expect to see further improvements to performance and remain confident in achieving our 2025 commitments.
Through our pollutions incident reduction plan, established in 2020, we have consolidated the gains made in reducing pollution incidents by c.50% in K7 to date across the network. Dynamic plans are in place to deliver the trajectory of improvements required to achieve our 2024 target.
Strategically well positioned to double base RORE returns
Across our water and wastewater operations, colleagues have worked around the clock to deliver on our commitments to customers, communities and the environment. These efforts are having a positive impact, and as result we anticipate a reduction in the net ODI penalty for 2023/24.
Given the current macro-environment we now anticipate higher regulated capital value (RCV) growth reflecting updated forward assumptions on inflation. Factoring in this, and all midnight adjustments, we anticipate an opening RCV of c.
Whilst finance costs for 2023/24 are reflective of the elevated inflationary and interest rate environment, our agile and efficient financing strategy has ensured we continue to be strategically well positioned in the current macro-environment. In the current regulatory period to 2023/24 we continue to anticipate a cumulative doubling of base returns on regulated equity (RORE), with the structure of our financing portfolio driving significant financial outperformance.
Financial performance for 2023/24 is expected to be weighted into H2, reflecting lower power costs, and the realisation of further efficiencies as we continue to unlock synergies from the integration of
Investing in renewable generation -
To date we have announced expected investment of c.
Development of these projects is proceeding in line with our expectations, with construction expected to commence during H2 2023/24 at our Dunfermline site, announced in
Full details of the Business Plan, along with an investor summary of the plan can be accessed here.
A spotlight presentation on PR24 will be held for investors and analysts at
PR24: Spotlight Presentation and Conference Call
Conference call dial in details:
Global Dial-In Numbers
Access Code: 372707
Contact:
Tel: +44 (0)1392 443 168
Cautionary statement in respect of forward-looking statements
Certain statements in this announcement are forward-looking statements relating to the Group's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, management. They are subject to a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of the Group to differ materially from any outcomes or results expressed or implied by such forward-looking statements.
The Group's principal risks were described in the 2023 Pennon Group Annual Report which can be viewed online at http://annualreport.pennon-group.co.uk. Such forward looking statements should therefore be construed in light of such risks, uncertainties and other factors and undue reliance should not be placed on them. They are made only as of the date of this announcement and no representation, assurance, guarantee or warranty is given in relation to them including as to their accuracy, completeness, or the basis on which they are made.
No obligation is accepted to publicly revise or update these forward-looking statements or adjust them as a result of new information or for future events or developments, except to the extent legally required. Nothing in this Statement should be construed as a profit forecast.
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