Pennon Group said Friday it is on track for a strong return to profitability, with earnings expected to rise about 60% this fiscal year, as the British water utility halved pollution incidents.
The owner of South West Water reported that in the eight months to August, pollution incidents fell by 50% and storm overflow spills were down by nearly half compared to the previous year, which it attributed to investments in its wastewater network.
"Whilst there is more to do, our pollution reduction plans are delivering tangible benefits, halving the number of pollutions and spills from storm overflows, reducing our impact on the environment," said Chief Executive Officer Susan Davy, who recently announced her intention to retire.
The company said its financial performance remains on track despite higher operational costs from a hot summer, which increased demand for water.
Pennon's liquidity was bolstered by a recent 300 million British Pound debt issuance to help fund its capital investment program, according to the trading update.
The company also noted that regulatory investigations by the Environment Agency and the Drinking Water Inspectorate are progressing.
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