REG - Severn Trent PLC - Severn Trent Plc Trading Update

Severn TrentAnnouncement

14/07/2022 07:00

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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 £50 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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