(Alliance News) - Severn Trent PLC on Friday said it was on track to meet full-year guidance in financial 2025, and expected to raise dividends in the coming years.
The Coventry, England-based water company estimates a net outcome delivery incentives reward for the year to March 31 above GBP100 million, in line with expectations. This is before customer-sharing in prices for financial 2017 and 2018.
During Asset Management Plan 7, the five-year period from 2020 to 2025 used by water companies, Severn Trent's net ODI reward is expected to be GBP420 million after customer-sharing.
Severn Trent said it had accepted the final determination for AMP8, with regulatory capital value expected to grow by 45%. The firm is targeting GBP14.9 billion total expenditure in the five-year period.
Expenditure aims to halve water spills by 2030, reduce pollution by 30% and reduce leakage by 16%, Severn Trent said. The company also plans to reach net zero status by the end of AMP8, and invest in 70 waste treatment facilities.
Severn Trent expects to increase the dividend per share in financial 2025/2026 to 126.02 pence, up from 121.71p in financial 2024, based on November's consumer price index.
The water company added that a GBP575 million affordability package is planned for AMP8, in an effort to maintain its reputation as England's second cheapest water provider.
"We will be able to make this investment with extensive regulatory mechanisms in place which offer protection to both customers and investors," Severn Trent said.
Severn Trent shares were down 0.3% at 2,476.00 pence each on Friday morning in London.
By Holly Munks, Alliance News reporter
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