Severn Trent PLC (LSE:SVT) said its financial performance remains on track and that the business is well placed to deliver progress.
The water supplier said it made a strong start operationally in the period to 18 July, with reservoir levels at 77%, more than 10% higher than the same period last year.
Financial performance remains on track and the company said it expects to deliver results in line with expectations, including a net reward of at least £50mln in customer outcome delivery incentives.
Severn Trent said its natural economic hedge fund also provides protection against energy volatility and it now has 45% of its net energy exposure for 2024/25 locked in at lower rates than this year.
Capital expenditure is expected to be between £850mln and £1bn for this year, with its investment programme moving at pace, according to a statement.
Operationally, it was also awarded a four-star Environmental Performance Assessment status by the Environmental Agency for 2022, becoming the first company to maintain this position for four consecutive years.
“We recognise that there is more we can do and we are committed to going further, faster, to deliver the best possible outcomes for our customers and the environment,” said chief executive Liv Garfield.
“The business is well placed to deliver the progress needed with a highly engaged workforce, sustained operational leadership and a strong balance sheet, supporting future investment."