United Utilities maintains guidance despite weather effects

14th Feb 2024 07:21

(Sharecast News) - United Utilities reported no significant changes to its financial guidance for the 2024 financial year in an update on Wednesday, despite weather-related challenges.

The FTSE 100 water company said its outcome delivery incentive (ODI) performance had been affected by adverse weather conditions, particularly high rainfall across the north west of England.

Annual rainfall in 2023 exceeded historical averages, with some areas experiencing a 50% increase compared to the prior year and up to 33% higher than the long-term average.

The region had also faced 14 named storms since the beginning of 2023, nine of which happened after September.

It said those weather events led to an approximately £25m impact on United Utilities' ODI performance.

However, the company anticipated a net ODI outperformance of around £40m for the financial year.

United Utilities said it had provided affordability assistance to about 370,000 customers during the current asset management period (AMP).

The company's proposals for the next period, AMP8, included its largest-ever support package, aiming to assist one in six customers with over £500m in support.

United Utilities also noted that it had been ranked as the top water and sewerage company (WaSC) and the fifth utility company overall out of 31 companies in the latest Institute of Customer Service Index survey.

Additionally, the company said it had been acknowledged for its strong sustainability focus, reflected in its improved Sustainalytics ESG Risk Rating for 2023, placing it 12th among approximately 700 global utilities.

United Utilities said it had been included in S&P Global's 2024 Sustainability Yearbook, achieving a Top 10% Corporate Sustainability Assessment (CSA) score within the multi and water utilities industry.

The company maintained its CDP Climate A- score and attained a B rating for its first Water Security Questionnaire, and had been recognised as one of the early adopters of the Taskforce on Nature-related Financial Disclosures (TNFD) following recommendations published in September last year.

United Utilities said it would announce its full-year results for the 2024 financial year on 16 May.

At 0814 GMT, shares in United Utilities were up 1.02% at 1,037.5p.

Reporting by Josh White for Sharecast.com.