United Utilities hikes dividends despite lower profit and rise in debt
United Utilities released its half year report today, highlighting an ambitious five year plan and hiking its dividend despite a fall in profit and rise in debt.
Revenue rose 6.8 per cent, but operating profit fell 6.9 per cent due after a 16.6 per cent jump in operating costs.
Debt rose from £7.8bn in 2022 to £8.5bn in 2023, up 9.1 per cent, but the company hiked its interim dividend per share by 9.4 per cent to 16.6p.
Alongside its results, United Utilities laid out a determined and ambitious plan to its regulator, Ofwat, for the five years leading up to 2030.
“We are proposing the largest investment in the region’s water and wastewater infrastructure in over 100 years,” the company said.
It plans to spend a total of £13.7bn within the five years, aimed at improving water and wastewater services, protecting and enhancing the environment, and reducing greenhouse gas emissions.
Despite this spending, the dividend policy will be maintained. United said its committed to increasing its payout inline with CPIH inflation each year leading up to 2025.
Dividends aren’t the only thing expected to change based on inflation. The company expects revenues to increase by nearly £150m in the next year as it pushes through an inflation-linked hike in bills.
Louise Beardmore, chief executive Officer, said: “We continue to focus on delivering for our customers, communities and the environment – and creating a stronger, greener and healthier North West.”
“We are providing affordability support to over 350,000 customers – more than ever before – and we are on track to achieve our best ever year on customer outcome delivery incentives.”