Pennon Share Discussion Threads

[bluemango] 25/1/2018 08:51

Yes, ex div today.

Close to a 3 year low with most utilities having a torrid time in the markets recently.
14 day RSI around 35.

[scoble2] 25/1/2018 08:33

x dividend today?

[wet your knot] 09/1/2018 20:26

RogerRail, you can see the impact on market prices for waste plastic below. With China out of the picture there is a massive oversupply:-

hxxps://www.letsrecycle.com/prices/plastics/plastic-film/plastic-film-2017/

You would expect that in a well managed business the rebates that get paid back to the customer are indexed and adjust as the market value goes up/down.

Refuse Derived Fuel (RDF) for WTE/EfW plants, is, as you say, residual material that's left behind after the "good stuff" has been picked. The China effect may mean that a lot of plastic that previously generated value now attracts a cost for disposal so potentially less picked out and more left as residual for RDF production.

Bigger picture for RDF is still that the majority is exported into Europe (at a cost) and UK EfW would be pretty much running at capacity.

[rogerrail] 03/1/2018 13:16

As I understand it the fuel for WTE plants is whats left after the practicable recyclable content is removed so if Viridor are collecting the waste and segregating into waste streams then no. However if their WTE pants are not at full capacity they could potentially receive low grade waste from other sources potentially even getting paid to take it. However this would not contribute to the recycling targets that C/councils are tasked to achieve.

[huttonr] 03/1/2018 12:14

re the China ban - will this also reduce the cost of fuel for the waste to energy plants?

[rogerrail] 03/1/2018 09:48

Does anyone know if the China Ban impacts Viridor? does it sell on plastic waste to other recyclers? A sharp drop in the value of plastic waste is inevitable.

[ygor705] 02/1/2018 13:03

Is this stock going to be depressed by Corbyn risk this year and get hoovered up by some maverick overseas player on the cheap?

[sllab101] 15/12/2017 17:24

Very heavy volume today?

[ny boy] 11/12/2017 14:32

I don’t think so as it’s fallen out of the trend channel floor 765p/767p, best wait for closes above this level first.

[scoble2] 11/12/2017 13:43

Is it good entry point?

[mj19] 11/12/2017 11:49

Deutsche Bank Lowers Pennon Group (PNN) to HoldPosted by Nicole Wilson on Dec 10th, 2017 // No CommentsPennon Group Plc logoDeutsche Bank cut shares of Pennon Group (LON:PNN) to a hold rating in a report released on Wednesday. They currently have GBX 840 ($11.31) target price

[walbrock82] 29/11/2017 16:51

Pennon Group reported higher sales and operating profit but failed to mention falling operating cash profit by 13% to £211m. It also failed to mentioned rising net borrowings to £2.79bn from £2.66bn.

To see the full analysis report on Pennon, click

[gateside] 29/11/2017 07:24

Dividend up 7.9%At first glance, results look good.

[mj19] 25/9/2017 23:48

Pennon has been doing a very good job with the core water business over recent years. A rigid control on costs has allowed it to generate some of the best returns on regulated business in the sector, while also earning rewards from Ofwat for exceeding the regulator's targets.Viridor collects household waste, sorts it, then recycles as much as possible. The residual waste is burned in energy recovery facilities (ERFs) to generate energy. Pennon is coping well with the pressures of lower recyclate prices, with various cost saving initiatives helping margins rise.Full year EBITDA (earnings before interest, tax, depreciation and amortisation) from the ERF business was £107m, ahead of the £100m target. This represented 22% of total profits.However, the regulated water business remains the senior partner. Here, the group's impressive double digit return on regulated equity helps supports the aim of inflation-beating dividend growth.Indeed, the group plans to increase the dividend by the rate of RPI inflation plus 4%. This, together with its prospective yield of 4.9%, lead us to believe that Pennon is the most attractive option of the three UK listed water utilities, in terms of income at least. Of course these are targets, so are not guaranteed to be met.The dark cloud on the horizon remains the prospects for UK interest rates, especially since the Bank of England has guided investors to expect a first increase in 10 years at some point in the coming months.Not only would higher rates mean the interest on Pennon's debt becomes more of a burden, but the relative appeal of bonds, also traditionally the preserve of income-seeking investors, would rise. There is no doubt then, that a sharp increase in rates has the potential to knock the shares.However, macroeconomic uncertainty means caution is still very much the watchword for policymakers. With this in mind, we feel it's unlikely Carney & co will do more than nudge rates back up to 0.5%, with any increases from there on likely to be slow and steady.

[mj19] 25/9/2017 23:45

Back YahooFINANCE Share2 dividend stocks that could make you a millionFool.co.uk Royston WildFool.co.uk25 septPennon Group (LSE: PNN) moved further away from recent seven-month lows in Monday trading, although a 1% rise following latest trading details was hardly a ringing vote of confidence.The water supplier and waste management play advised that it is "on track" to meet management's expectations across both divisions.Pennon said it "continues to deliver a robust underlying financial performance for 2017/18." And it added: "With our clear strategy and strong balance sheet, Pennon is well-placed to continue to deliver for customers, communities and shareholders."I for one reckon this reassuring update should command more attention from the investment community today.Now, the nature of Pennon's operations means that updates like these are hardly likely to make investors' hearts skip a beat. But the defensive nature of such services means that those seeking reliable earnings growth may want to take a look, even if the company is not totally immune to the impact of a slowing economy. Current broker forecasts put bottom-line growth for the periods to March 2018 and 2019 at 2% and 12% respectively.This means that the FTSE 250 star trades on a forward P/E ratio of 16.6 times, a decent reading if somewhat unspectacular.However, Pennon's solid earnings outlook should certainly catch the eye of dividend chasers, something that analyst predictions certainly point to.In the current fiscal period a total payment of 38.5p per share is forecast, improving from 35.96p last year and yielding a mammoth 4.8% (by comparison Britain's listed blue-chips yield around 3.5%).And the news gets even better for next year -- a predicted 41.3p dividend drives the yield to a lip-smacking 5.2%.On strong foundations

[wskill] 25/9/2017 07:41

Broker forecasts are fine then Eps 48p 2018 and 53p for 2019

[andysaw] 25/9/2017 07:11

Pennon continues to deliver a robust underlying financial performance for 2017/18. With our clear strategy and strong balance sheet, Pennon is well-placed to continue to deliver for customers, communities and shareholders.

[mj19] 25/9/2017 06:21

Good luck to all

[wskill] 24/9/2017 17:37

Political risk will not affect the main business supplying water and waste management thankfully .

[shalder] 24/9/2017 17:06

Problem is political risk. Corbyn & co will, subject to opinion poll figures, try to engineer another election on some pretext or other before too long. Their policy on water is to renationalise/confiscate the companies on the grounds that they "rip off" consumers. The fact that consumers, either directly or indirectly, also own chunks of the companies in their isas, pensions funds etc will get lost in translation. Hence I am wary of this sector at the moment.

[wskill] 24/9/2017 17:01

Bought a good few Friday for my SIPP and will hold long term a decent company with a good growth record as soon as these small problems with Viridor are settled which in itself is also a growth business in the fullness of time.
With the trading statement on Monday this will be the catalyst of the move upwards.

[andysaw] 24/9/2017 16:59

I'm also in it. It is a usual cycle of bottoming out around Sep each year and then going up to the peak. I expect good rise on Monday for PENNON and United Utilities on Tuesday as both have bottomed out as per the chart. IMO

[mj19] 24/9/2017 16:45

Anyone in this? Or just me? I bought and am holding