Severn Trent Share Discussion Threads

[atlantic57] 22/2/2018 22:05

Brinks matt i think yoiur comments are very significant.
I Think the slump in utilities is much more about their role as Bond Proxies and much less about political turmoil.

After all a general election is 2022

[careful] 22/2/2018 21:12

Gove is not criticising at Severn Trent.
It is utilities like Thames water he was referring to.

Thames were taken over by private equity.
They loaded it with debt and withdrew billions.
Then they located offshore and pay no UK corporation tax.
Underperformance on service and investment is commonplace.

It really stinks and is the unacceptable face of capitalism.

[brinks_matt] 22/2/2018 20:46

Backdrop of:
political risk
anticipated tough PR19 determinations
seen as a bond proxy and recent rising bond yields?

I think the dramatic rise in Utilities and other bond proxies at 15:00GMT was possibly a result of a slight drop in the 10 year US Treasury yield:

[gateside] 22/2/2018 20:45

Also Gove is saying he wants to give Ofwat more powers.

[whatsup32] 22/2/2018 20:23

Thanks paa

I thought that had all been priced in but obviously not

[paa65] 22/2/2018 16:49

Corbyn saying he will nationalise water industry. He brought it up again on 5th Feb which accelerared the fall

[whatsup32] 22/2/2018 14:37

Can someone explain the continuing share price drop in this supposed blue chip company.

[whatsup32] 15/2/2018 13:05

Bought at approx 21.50 thinking that was a good buy. Sold at 20.05 taking a loss . In hind site good decision. Unfortunately bought into CNA with the funds

[skinny] 07/2/2018 07:10

Severn Trent, a leading UK water and waste water company, today provides its trading update.

Financial outlook: The Board continues to expect that the Group will deliver FY17/18 trading performance in line with its expectations and guidance previously disclosed at the HY17/18 results presentation on 23rd November 2017. We also reaffirm that at least £50 million customer ODI(1) outperformance payments are expected to be earned this year.

Delivering sustainable performance for all stakeholders:

AMP6(2): We are focused on providing benefits to our customers, communities, colleagues and investors, and we have generated sector-leading outperformance payments on key customer ODIs and continue to do well year-to-date.

We have positive momentum on Waste, particularly on internal and external sewer flooding, category 3 pollutions and serious pollution incidents. We re-confirm that we will hit the AMP6 outperformance cap(3). On Water, we have had more supply interruptions than normal in the last quarter, but are encouraged by the reduction in water quality complaints, which were down 12% year on year. We confirm that we expect to earn at least £50 million customer ODI(1) outperformance payments across Waste and Water this year.

We continue to work hard on improving our SIM(4) scores. We also note that we have one of the sector-leading scores in CCW's(5) independent annual survey on what our customers think.

We have delivered material reductions in our cost of finance. Since our HY17/18 results announcement, a £400m fixed-rate sterling bond with a coupon of 6% matured and was refinanced in part with a £250m five-year sterling bond with a coupon of 1.625%. We continue to explore varied sources of finance to help positon us as an upper-quartile performer in AMP7.

AMP7(2): Ofwat announced its PR19(6) Final Methodology in December 2017, providing welcome clarity on upcoming plans. We expected a tough review, recently restructuring our wholesale business to improve operational effectiveness and our customers' experience. We are encouraged by the enhanced incentive regime, creating strong outperformance opportunities. We are positioning ourselves for continued success in AMP7.

To assist AMP7 planning, we have launched our largest ever customer engagement programme, including a community panel of 10,000 customers, a review of two million customer contacts and analysis of over seven million social media conversations. This helps us understand the core service improvements and wider social and environmental initiatives our customers expect, thereby underpinning future growth in our RCV(7).

Corporate social responsibility: We are conscious of Severn Trent's role in society through the impact on our community, the wider environment, and the importance of workplace diversity. Our work in the community delivers benefits through our extensive customer education and employee volunteering programmes. We are keen to play our part in supporting social mobility and we have a highly-rated apprentice programme. We have reported a gender pay gap of 2.4% and, while we have even further to go, we have made strong progress in supporting workplace diversity and gender pay equality. We have a strong record of environmental performance and through our renewable energy business we are on track to generate the equivalent of 50% of our energy needs by 2020.

[whatsup32] 31/1/2018 16:06

Svt is continuing to take a beating . I thought it was one of the better utilities to invest in

[bountyhunter] 21/1/2018 09:56

Labour's renationalisation to cost every family £6,500

Here's the link...





...if anyone is still here!?

[jak1] 01/12/2017 16:21

And looking likely its going to happen IMO

Morgan Stanley said British utility companies, especially water and power companies, were most at risk from a Labour government, but also warned postal services, telecommunications and travel companies could be affected.

[careful] 06/11/2017 09:36

Good to see SVT doing better.
The recent rebate from the regulator for outperformance is a welcome change.
Changed the mood.
We had got used to the idea that regulation was a stick used to punish utilities for political ends.

[campervan1] 27/9/2017 12:25

Yes and sadly it looks more and more likely that he would win. Let's hope May sits tight and doesn't listen to her 'advisors' again. Was going to buy more PNN for the growing dividend, but see it as risky to increase positions in utilities now. Ditto RMG.

[careful] 24/9/2017 10:52

any holders worried about the Corbyn threat to renationalise?
he would pick these up very cheaply if ever he won the next election.

[bountyhunter] 23/5/2017 07:59

a great set of results ...profits up across the board and an enhanced dividend policy -

"We have enhanced our dividend policy for the remainder of AMP6, with effect from 2017/18, and will now increase the dividend by at least RPI +4% each year"

no wonder the Canadian teachers pension fund has tried to snap this up in the past!

[kingcashbilly] 21/7/2016 11:21

covered in beaufort's morning report:

"Severn Trent’s performance for the period from 1st April 2016 to 19th July 2016 has been in line with its expectations and previous guidance. The company continued to focus on improving customer service and operational and financial performance. The company is progressing well to deliver targeted efficiency savings in the second year of the AMP6 regulatory period. The completion of the formation of JV (Water Plus) with United Utilities is a positive development. The JV would combine the complementary skills of both companies across sales, customer service, business strategy and credit management to deliver an attractive proposition for large and small business customers across England and Scotland. The company plans to invest for enhancing the customer experience. We are buoyed by Severn Trent’s progress and expect it to continue its growth momentum in the current year."

[atlantic57] 14/10/2015 12:56

Camlor what is the rumour mill suggesting please??

[camlor2] 09/10/2015 11:16

Time to short if the rumour mill is right !!

[redartbmud] 10/8/2015 15:13

Did the Canadians get lost crossing the Atlantic?

[atlantic57] 10/8/2015 14:56

It is difficult to see how a £22 share offer would be of any interest as this
is virtually the current share price.The article speaks of a 5 billion pound offer when the current share price appears to value svt at around 4.8 billion.

Surely a bid premium of 25% to 30% would be needed to have any chance of succeeding.!

[redartbmud] 23/6/2015 08:09

Very quiet here, considering the paper comments. Sp ticking back on no news.

[ashbox] 21/6/2015 12:05

Canadians back again?