Dividend cuts loom for water utilities, suggests UBS
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UBS anticipates potential dividend cuts for water utilities following the upcoming Ofwat price regime decision. Pennon Group is expected to be affected, with less certainty for United Utilities and Severn Trent.
November 13, 2024 | 2:15 pm
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NEGATIVE IMPACT
UBS expects Pennon Group, owner of South West Water, to face dividend cuts following Ofwat's price regime decision.
UBS's analysis suggests that Pennon Group is highly likely to cut dividends due to regulatory changes by Ofwat, impacting investor returns.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80