Pennon Group PLC (LSE:PNN, OTC:PEGRY) is set to update on plans to plug leaks and clear up sewage discharges in a trading statement next Monday, 2 October.
The FTSE 100-listed company will likely see this statement as a PR opportunity right now, said analysts at Hargreaves Lansdown, given last week’s ruling by Ofwat that the water industry must return £114 million to consumers due to poor environmental standards.
Rival Severn Trent's £1 billion fundraising to help pay for its improvements may also get Pennon investors twitching.
The Bristol Water owner's update will indeed include “plenty” on the firm’s financials and the cost of funding its balance sheet, the analysts expect, especially given Pennon’s subsidiaries are less geared towards debt than rivals.
Pennon unveiled inflation and weather-hit full-year results in June, showing a near 100% fall in post-tax profit to £0.4 million.
Looking ahead, Pennon said full-year revenue was anticipated to rise from the £825 million recorded in 2022 owing to inflation-linked bill hikes.
Penalties and tougher regulation could weigh in though, with Ofwat likely set to unveil a tougher stance on the sector in next year's price review, according to Deutsche Bank.
Shares have been hit recently, falling 13.5% to 558p so far this year.