Severn Trent PLC (LSE:SVT) has told investors that an influx of storms in recent months will not impact the water company’s financial performance for the year.
Despite the UK being hit by 10 named storms since September and suffering the third wettest end to a year on record, Severn Trent reported it had avoided a significant hit.
Outcome Delivery Incentives, which are awarded to utilities for meeting operational targets, will sit at around £50 million for the year, in line with previous guidance.
This would take such rewards to over £250 for the past four years, reflecting some £3 billion worth of investments in improving the likes of its water network.
Guidance for the year was also left unchanged, with revenue expected to come in between £2.15 billion and £2.20 billion, compared to £2.00 billion last year.
Severn Trent’s unchanged outlook will see the firm targeting a 116.84p dividend, against 106.82p in 2023, with investments set to climb from £737 million to £1 billion.
Shares climbed 0.3% to 2,503p.