AUS
NZ
UK
CA
USA
IND
Highlights
- Top ODI5 Reward in Sector: Leading performance on Outcome Delivery Incentives, expected to maintain in FY25.
- 4-Star Environmental Rating: Earned highest rating in Environmental Performance Assessment for 2023.
- Improved Earnings: Underlying EPS doubled to 26.8p; interim dividend steady at 17.28p.
United Utilities (LSE:UU) has released its financial and operational results for the six months ending September 30, 2024, showcasing a period of strong performance across key metrics. The company reported sector-leading achievement on Outcome Delivery Incentives (ODI5) and achieved the highest 4-star rating in the Environment Agency’s Environmental Performance Assessment for 2023. United Utilities has also committed to further environmental progress, pledging spill reductions through upgrades to over 1,100 storm overflows by 2030.
In leakage management, United Utilities continues to excel with the adoption of innovative detection techniques, helping to minimize water loss. The company’s support initiatives have expanded, with over 475,000 households now on the Priority Services register and nearly 400,000 customers benefiting from affordability schemes. United Utilities has also taken first place in the Measures of Experience for both developer (D-MeX) and retailer (R-MeX) satisfaction metrics.
Financially, United Utilities reported an underlying operating profit of £336 million, with a reported profit of £333 million. Underlying earnings per share (EPS) doubled to 26.8p compared to the prior year’s 13.2p, while reported EPS stood at 15.1p. The company maintains a low gearing level at 60%, providing financial flexibility as it moves forward with AMP8 funding and £2.6 billion in liquidity extending through FY27. Consistent with its policy, United Utilities declared an interim dividend of 17.28p per share.
For the remainder of the regulatory AMP7 period, United Utilities aims to sustain its high ODI performance into FY25. The company has revised its capital expenditure guidance upward, with anticipated spending between £950 million and £1.1 billion. United Utilities is forecasting a strong average real Return on Regulated Equity (RoRE) between 6-8% and expects nominal compound growth in its Regulatory Capital Value (RCV) at 4-5%. The company’s financial framework emphasizes keeping gearing within its target range of 55-65%, ensuring a solid base for future investments and sustainability efforts.
