Pennon Share Discussion Threads

[gateside] 04/7/2016 23:56

Knocking on the door of the FTSE 100. Every chance PNN could be promoted at the next review.

[its the oxman] 25/5/2016 08:40

Deserves to test 900p but not sure it will. All looks very positive.

[essentialinvestor] 25/5/2016 08:38

red, hoping it comes back giving an opportunity to add.

[essentialinvestor] 25/5/2016 08:19

Fantastic set of results IMV.

[essentialinvestor] 17/5/2016 08:51

Hut, it is a valid point though and had assumed the IRV news is
a reason for the recent PNN share price weakness.

[essentialinvestor] 17/5/2016 08:43

They update shortly, PNN already have multiple ERF's completed and
operating as you are probably aware, would have thought it would be an IRV
liability, see what they say with the results.

[huttonr] 17/5/2016 08:38

I'm getting confusing information about Viridor:

1. Interserve, who are building the Glasgow ERF for Viridor are taking a £70m provision against the contract 'months behind schedule - further subcontractor issues to result on cost over-runs and delays'
2. Interserve also have, I think, the Dunbar contract but this is at an earlier stage
3. Last mention in Pennon interims - Glasgow 'moving to early commissioning'

Hopefully the cost over-runs will not get back to Viridor but what is the effect of the delays? and what is really happening?

[essentialinvestor] 12/5/2016 10:39

My concern was about the energy from waste sector and regulatory changes,
however it appears they are managing that unless I am misreading the news flow.

[harvester] 29/4/2016 23:18

Steady price action on a market down-day.Feeling confident about my investment in PNN.

[saltaire111] 21/4/2016 18:06

I topped up on these today. Like the income and should be a safe haven against the on-coming Brexit wobbles.

Salty

[harvester] 11/2/2016 11:48

A good defensive share IMHOCan hold long-term if market turmoil continues.mY guess is that worse market conditions lie ahead.Waiting for proper capitulation. Then will commit more funds to buy quality shares.

[zeppo] 11/2/2016 11:28

Well done!

Wish I had some cash!


z

[harvester] 11/2/2016 10:21

Weak today on a bad day !Hence bought today@808

[zeppo] 15/1/2016 18:30

Strong on a bad day!

z

[zeppo] 15/1/2016 11:09

Strong start today - then the market slipped back.

Any news?


z

[bamburgh] 11/1/2016 16:54

Super company...super investment vehicle in good and troubled times.

[wirralowl] 27/11/2015 16:14

Yes, nice to know you can rely on dividend growth at the rate of +4% year-on-year over and above inflation through to 2020, especially when the starting point is already above 4%. Nice also to see Viridor on BBC news last night, highlighting its Manchester ops as the way forward for landfill sites.

[saltaire111] 27/11/2015 08:11

Great results

[wirralowl] 16/10/2015 13:02

Tipped in IC today.

[yf23_1] 08/10/2015 14:20

flying today

[ohisay] 01/10/2015 08:30

Pennon – Receives provisional clearance of Bournemouth Water merger from CMA.

The CMA has provisionally cleared the acquisition of Bournemouth Water by Pennon and the subsequent merger of Bournemouth Water with South West Water. The CMA concluded that the merger is not likely to prejudice Ofwat’s ability to compare water companies’ performance and set price controls.
A consultation ending 21 October will now be run by CMA on this provisional decision, and a final decision will be made by CMA by 22 November 2015. (Ofwat)

[wirralowl] 28/9/2015 16:45

Bought a few here today, for the LT. Like the large and progressive dividend and the potential boost to revenues offered by the ERF's, not to mention the fact that this could well be a takeover target some time in the future. Admirable share price strength today too, in spite of the general market mood.

[ohisay] 28/9/2015 16:27

HL view.

Pennon offers the highest yield and has the most attractive dividend policy out of the three UK-listed water companies. United Utilities and Severn Trent yield 4.2% and 3.7%, respectively (both variable and not guaranteed) and aim to grow the dividend at least in line with RPI inflation until 2020. Pennon offers a prospective yield of 4.5% (variable, not guaranteed) and aims to grow the pay-out by 4% plus RPI over the same period.

Pennon's high yield is partly a reflection of concerns over its waste management business, Viridor. Viridor once was a predominantly landfill business, but has restructured itself to become a leading renewable energy and recycling provider. Viridor collects household waste and sorts it, then recycles as much as possible. The residual waste is burned in Energy Recovery Facilities (ERFs) and converted into energy. The problem is that lower oil prices are making recycled plastics and metals less competitive versus virgin materials, resulting in lower recyclate prices.

So far, Viridor is coping well with these pressures, and as more of these ERFs come on stream, the profitability of this business should improve. BY 2016/17 the ERF business should be contributing c. £100m to Viridor's EBITDA (earnings before interest, tax, depreciation and amortisation), which compares with market expectations of c. £474m in EBITDA for that year. This is significant, but unlikely to make or break the group, given that the water business will still be responsible for the bulk of profits.

With the shares down 18% year-to-date, concerns over Viridor's profitability are arguably already priced into the shares, given the higher yield and more generous dividend policy on offer compared to its pure-play water peers. Therein lies the opportunity although there are no guarantees.

[ohisay] 28/9/2015 07:39

Encouraging RNS especially for Viridor.

Although there continues to be pressure on commodity prices, recycling EBITDA in the first half of 2015/16 has improved on H2 2014/15. This is as a result of Viridor's ongoing Input, Throughput and Output Optimisation (ITOO) programme, which is addressing the effectiveness and efficiency of operations and is yielding financial benefits.
Viridor remains confident of the long-term regulatory drivers from the EU and UK Government underpinning demand for recycling and the business is well-placed to deliver sustainable returns.