Half-year earnings surge at United Utilities

(Sharecast News) - United Utilities posted a surged in half-year earnings and reaffirmed guidance on Thursday, after the water company increased bills.

The blue chip, which provides water and wastewater services across the north west, saw reported revenues rise 11.7% to £1.46bn in the six months to September end, while operating profits were 12.9% higher at £633.8m.

On an underlying basis, pre-tax profits rose 5.3% to £411.9m, while revenues were 9.1% stronger at £1.41bn.

United Utilities called it a "strong" financial performance, with the rise in profits driven "principally" by higher allowed revenues. Regulator Ofwat sets how much water companies can charge.

United Utilities also saw net regulatory capital expenditure jump to £993m, as it continued to make progress on an ongoing upgrade programme during the period.

Louise Beardmore, chief executive, said more than 1,000 projects are now underway.

Looking ahead, she continued: "Our capital investment will grow significantly, with more than £2bn being delivered this year as part of our largest-ever five-year programme. This is on track and fully funded, supported by our robust financial performance and the £800m of new equity we raised in April."

United Utilities also reaffirmed guidance for underlying revenues to come in between £2.7bn and £2.8bn in the full year, while operating costs were expected to rise by around £100m, relating to growth in the asset base and price increases, including business rates.

See latest RNS on Sharecast