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RNS Number : 4123S
Severn Trent PLC
14 July 2022
Severn Trent Plc Trading Update
Severn Trent Plc today announces the following trading update
for the period to 13 July 2022.
Strong start to the third year of AMP7
-- Operational Performance - We have had a good start to the
year operationally and continue to expect at least GBP50 million in
customer ODI outperformance payments in FY23. As expected, we are
seeing the increase in operating costs, particularly energy and
chemicals, outlined in our technical guidance.
-- Environmental Performance - We are confident we will retain
our 4-star Environmental Performance Assessment rating for 2021 and
expect this to be confirmed by the Environment Agency soon. We also
remain on track to meet or exceed target on 100% of our environment
ODIs this year.
-- Energy Self-generation - We are benefitting from our decade
of investment in renewable energy generation and generated 145 GWh
of energy in the first quarter of this financial year which equates
to over 50% of our consumption. This generation is 4% higher than
the same period in FY22.
-- Sustainable Financing Framework - Our updated Sustainable
Financing Framework will be released in July. This framework
details our environmental, social, and governance performance and
ambitions, enabling Severn Trent Plc and its subsidiaries to raise
financing for sustainable investment and expenditure. The report
will be published on our website at www.severntrent.com.
PR24 draft methodology update
Ofwat issued its PR24 draft methodology on Thursday 7(th) July.
Severn Trent held a briefing via webcast on Tuesday 12(th) July.
The webcast and presentation can be accessed at
www.severntrent.com.
Enquiries
Investors & Analysts
Rachel Martin Severn Trent Plc +44 (0) 7824 624 011
Head of Investor Relations
Dominique Mowle Severn Trent Plc +44 (0) 7967 767 079
Investor Relations
Manager
Media
Jonathan Sibun Tulchan Communications +44 (0) 207 353 4200
Press Office Severn Trent Plc +44 (0) 247 771 5640
Glossary
Environmental Performance Assessment (EPA)
A non-statutory tool for comparing performance between water and
sewerage companies (WaSCs) operating mainly in England. It uses
measurable environmental indicators to provide a meaningful
comparison of performance across the nine WaSCs in England.
Outcome Delivery Incentives (ODIs)
A framework made up of outcomes, measures, targets and
incentives which provides companies with rewards for achieving
stretching performance targets and compensates customers if
performance is below performance targets. This was first introduced
at the 2014 price review (PR14) by the regulator, Ofwat. Outcome
Delivery Incentives are quoted pre-tax in 2017/18 prices. We assume
a 25% rate of corporation tax to be in place when ODIs are taken
into revenue.
PR24
The price review (PR) is a financial review process led by Ofwat
where wholesale price controls for water and sewage companies are
set every five years. PR24 (Price Review 2024) set wholesale price
controls for water and sewerage companies for 2025 to 2030.
Cautionary statement regarding forward-looking statements
This document contains statements that are, or may be deemed to
be, 'forward-looking statements' with respect to Severn Trent's
financial condition, results of operations and business and certain
of Severn Trent's plans and objectives with respect to these
items.
Forward-looking statements are sometimes, but not always,
identified by their use of a date in the future or such words as
'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would',
'should', 'expects', 'believes', 'intends', 'plans', 'projects',
'potential', 'reasonably possible', 'targets', 'goal', 'estimates'
or words with a similar meaning, and, in each case, their negative
or other variations or comparable terminology. Any forward-looking
statements in this document are based on Severn Trent's current
expectations and, by their very nature, forward-looking statements
are inherently unpredictable, speculative and involve risk and
uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future
performance and no assurances can be given that the forward-looking
statements in this document will be realised. There are a number of
factors, many of which are beyond Severn Trent's control, that
could cause actual results, performance and developments to differ
materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to: the
Principal Risks and uncertainties detailed in this document; the
Principal Risks disclosed in our latest Annual Report and Accounts
(which have not been updated since the date of its publication);
changes in the economies and markets in which the Group operates;
changes in the regulatory and competition frameworks in which the
Group operates; the impact of legal or other proceedings against or
which affect the Group; and changes in interest and exchange
rates.
All written or verbal forward-looking statements, made in this
document or made subsequently, which are attributable to Severn
Trent or any other member of the Group or persons acting on their
behalf are expressly qualified in their entirety by the factors
referred to above. No assurances can be given that the
forward-looking statements in this document will be realised. This
document speaks as at the date of publication. Save as required by
applicable laws and regulations, Severn Trent does not intend to
update any forward-looking statements and does not undertake any
obligation to do so. Past performance of securities of Severn Trent
Plc cannot be relied upon as a guide to the future performance of
securities of Severn Trent Plc.
Nothing in this document should be regarded as a profits
forecast.
This document is not an offer to sell, exchange or transfer any
securities of Severn Trent Plc or any of its subsidiaries and is
not soliciting an offer to purchase, exchange or transfer such
securities in any jurisdiction. Securities may not be offered, sold
or transferred in the United States absent registration or an
applicable exemption from the registration requirements of the US
Securities Act of 1933 (as amended).
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END
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