AUS
NZ
UK
CA
USA
IND
Summary
- UK water watchdog Ofwat announced plans of investment of up to £2.8 billion in green projects, with over £850 million of additional investment for projects from Severn Trent Water, South Staffs Water, South West Water, a subsidiary of the Pennon Group, Thames Water and United Utilities
- £1.9 billion is set aside for future green projects across the country
UK water watchdog Ofwat announced plans of investment of up to £2.8 billion in the green project, as part of its Green Recovery Program with goals to reduce pollution from the utilities sector.
The water regulator announced to allow additional investments worth over £850 million from Severn Trent Water (LON:SVT), South Staffs Water, South West Water which is a subsidiary of the Pennon Group (LON:PNN), Thames Water and United Utilities (LON: UU.) green projects. The remaining, £1.9 billion has been set aside by Ofwat for future green projects in the country as it is aiming to achieve net zero carbon emissions by 2050.
Ofwat’s green investment goals are subject to a consultation planned for June this year. The move comes after Ofwat had previously asked UK water firms to submit green proposals in July last year.
In this article, we would glance through the performance of these 3 FTSE listed water stocks whom the water regulator has permitted making additional investment.
FTSE 100 listed water utility company Severn Trent PLC said that it is set to invest up to £564.627 million as per Ofwat’s permission for its projects to reduce flooding risk, increase water supplies and transform water stretches. The green recovery program is also expected to create up to 2,500 jobs in the Midlands.
(Source: EODHD/Others, Thomson Reuters)
SVT’s shares were trading at 2,503.00, down by 0.28 per cent, while the broader market index FTSE 100 stood at 7,017.16, down by 0.38 per cent on 17 May as of 10:33 HRS GMT+1.
The company’s market cap was at £5.996 billion, and its year to date returns was at 9.31 per cent.
- United Utilities Group PLC (LON: UU.)
FTSE 100 listed water major United Utilities will invest up to £62.870 million as per Ofwat green projects investment approval towards increasing sewer capacity, develop nature-based solutions through partnerships and identify harm reduction methods from storm overflows.
United Utilities had also announced on 14 May its plans for the upgrade of 110 km stretch of Haweswater Aqueduct drinking water pipeline from South Lakeland to East of Kendal.
(Source: EODHD/Others, Thomson Reuters)
United Utilities’ shares were trading at 981.00, down by 0.81 per cent, while the sectoral index of Gas and Water was trading flat at 4,805.15 on 17 May as of 10:40 HRS GMT+1.
The company’s market cap was at £6.74 billion, and its year-to-date returns was at 9.59 per cent.
Also Read: How are these 2 Utility Stocks Performing: United Utilities Group & Severn Trent?
- Pennon Group PLC (LON:PNN)
South West Water, a subsidiary of FTSE 250 listed Pennon Group, would invest £81.042 million for its Green Recovery Initiative as per approval from Ofwat. Through its five schemes, it will be upgrading water treatment at Knapp Mill and increasing the water supply resilience by supporting water transfers.
(Source: EODHD/Others, Thomson Reuters)
Pennon Group’s shares were trading at GBX 1,041.00, down by 0.43 per cent on 17 May as of 10:42 HRS GMT+1. The company’s market cap was at £4.413 billion, and its year-to-date returns was at 9.58 per cent.
