United Utilities Share Discussion Threads

[wad collector] 20/6/2023 14:04

All UK listed shares Xd days are a Thursday now, except for the one occasion last year when there was an unexpected Thursday Bank Holiday.

[tuftymatt] 18/6/2023 08:03

Yes Thursday from memory. Can we get to 1090 ahead of then?

Good luck all 👍🏻

[wad collector] 18/6/2023 07:23

Xd 30.3p this week

[wad collector] 07/6/2023 11:35

I used to trade some of my holding but I would not look to come back in this time even with a substantial drop. I prefer to look at SSE for utility advantages.

[pierre oreilly] 07/6/2023 10:16

I thought you'd decided this selling then hoping to buy back cheaper was a dead loss?View it as an income stream then you don't have to worry about the share price. Leave the trading to the penny punters, 80% of whom lose the lot.

[alphorn] 07/6/2023 08:41

I write bullish options against UU for income. Will reconsider later in the year.

[tuftymatt] 07/6/2023 08:30

I am with you WC.

I got back in fairly recently with a view of 1100 maybe later in the year and earning the divi too in a few weeks. It's possible but I think if we get close to 1100 before ex divi I may take my profit.

Most of what I hold drops further than the divi anyway so on balance locking in the profit early if possible may be better.

Good luck all 👍🏻

[wad collector] 06/6/2023 23:43

I have held here almost since privatisation, but this is the first time for about 20 yrs that I have decided to get out completely; just set my last limit order for 1090.
I have long viewed these as good income safe monopoly holding with political vulnerability if a Labour Govt got in, and OFWAT providing a buffer on profits, but offset by a good yield .
With a likely labour Govt over the horizon , and some political capital to be made on the pollution front , I can't see much upside from here. The yield has dropped to the point that it is not such an attraction in current markets, 4.2% now, not far off the FTSE 100 yield average of 3.75%. This was a yield outlier a decade ago , but I can't see much upside now. Or maybe I am getting more cautious with age.

[gilesy911] 29/5/2023 23:03

Also on the BBC Radio 4 News... not helpful

[gilesy911] 29/5/2023 19:55

Steve Coogan and Lee Mack join pollution protest at Windermere https://www.bbc.co.uk/news/uk-england-cumbria-65747962

[wad collector] 19/5/2023 17:46

Finals next Thursday.

[tuftymatt] 19/5/2023 10:35

Well it may have been taken ok in the morning but by the afternoon and today the market reacted!!

Will let the dust settle a bit then average down / lower my target price.

Good luck all 👍🏻

[tuftymatt] 18/5/2023 11:37

I took a small position again today and am hoping for a run to back over 1100.

The news today regarding the £10bn cost of fixing the sewage issues across the country has been taken ok by the market so a small punt made sense.

Good luck all 👍🏻

[wad collector] 28/4/2023 22:30

Big article in IC today pointing out the increasing risks with UU and with increasing interest rates , growing political scrutiny and the risks of more fines and investment pressure they now rate it as a Sell.

[mrphil] 20/4/2023 08:22

With UU. as one of my largest shareholdings I was pretty horrified to read this

This really is unacceptable, we must do better!

[tuftymatt] 19/4/2023 08:53

I too took just over 1100 recently but picked a few up again today.

Agree that it has limited upside but if I can get the next divi and circa 1100 again later this year then I am ok with that.

[alphorn] 13/4/2023 10:40

My (oldish) bullish options have a strike of 960p. When they expire will renew at what strike? I agree with wad's view.

[wad collector] 12/4/2023 20:22

I let half of mine go today at 1110p. I am not sure about the sector. May be wrong but limited upside I think.

[wad collector] 06/4/2023 14:35

Politically all the water companies are in a tight corner , they cannot be allowed to make substantially bigger profits in what is effectively a supply monopoly, but from a positive viewpoint they cannot be seen to fail so Ofwat I think will tinker with the charges to keep the company reasonably healthy.
In the Utility sector I have a much larger holding in SSE , I think that although there are some parallels with water , the electrification green agenda has got to have a positive effect on both the supply side and the distribution. In contrast , the UK's water demand is probably not going to rise dramatically on an annual basis in the medium term.
I hadn't noticed the OFWAT announcement , but when I went looking for it , I noticed this has sneaked in

which does look like the doors are being pushed harder closed. It is rather mealy mouthed when it comments that these changes will encourage investment!

Looking at the £1.6 Billion boost headline , I am not clear from reading the annoucement that the money is coming from central funding , but looks to me like UU is paying for it. I can't find any clarity on the UU website either. Hope I am wrong.

[claretmatt] 06/4/2023 13:48

UU scored big this week when OFWAT announced £1.1billion of investment in CSO's (Combined sewer overflows) of which UU will receive £940million which is great news, but the revenue side of things will still be a worry whilst inflation persists. Maybe the market has priced this in and feel that the BOE will pull a masterstroke or are we seeing a pump before the dump on the earnings an revenue announcement in May?

[wad collector] 06/4/2023 08:59

Yes it is a bit of an anomaly , there is obviously a growing pressure to invest in the infrastructure to improve the pollution problem that someone is going to have to pay for one way or another. I think the elephant in the room remains the renationalisation risk. I suppose whether you view the share price holding up well is rather dependant on how far you look back. It was averaging around 950p from 2015 to 2017 so today's 1080p is unimpressive on that basis. The yield was a big attraction back then but less so now in a higher interest rate environment.
I have held these for 30 yrs or so, sometimes trading, but mostly just leaving , but you have made me think , maybe it is time to move on with a Labour govt on the horizon and a troubled sewage industry.

[claretmatt] 05/4/2023 17:11

What's your thoughts on why the share price is holding up so well at the moment whilst it's looking so gloomy on the profit front? I'm not expecting fuel, chemical, electric prices to be coming down in the near future with global tensions continuing as they are. Investment is going to be a struggle in the next AMP period due to expected increase in new infrastructure purchasing costs. I'm genuinely confused and I am considering taking a good chunk of my investment off the table to lock in some good profit, however the it looks like it's about to pump out of this range...

[wad collector] 05/4/2023 13:59

TU Last week
Financial performance

ODI Performance : In December we experienced a period of extreme weather. While our teams and partners worked tirelessly to minimise disruption, some customers experienced short-term supply interruptions caused by rapid freeze-thaw events, leading to burst pipes. As a result, ODI performance for the year will be adversely impacted. Net ODI outperformance for 2022/23 is now expected in the range GBP20m to GBP25m. ODI guidance for AMP7 remains unchanged and we continue to target a net reward of c.GBP200m.

Operating result: Group revenue for 2022/23 is expected to be around 1% lower than previous guidance driven by timing effects, primarily lower consumption, which are fully recovered in future years. Operating costs are expected to be inline with previous guidance.

Net finance and tax: Underlying net finance expense for 2022/23 is expected to be around GBP175m higher than last year, some GBP10m higher than our previous guidance and largely as a consequence of higher inflation. Cash interest is expected to remain stable when compared to last year. We now expect an underlying tax credit for 2022/23 of between GBP15m and GBP25m, reflecting higher interest charge and a change in approach to carried forward tax losses.

Balance sheet: Group net debt is expected to increase compared with the interim result, largely reflecting the impact of inflation on index-linked debt. Gearing remains in range, supporting a solid A3 credit rating for United Utilities Water with Moody's and our AMP7 dividend policy.