United Utilities (UU) Share Price Fell 1.52% Despite H1 Results

The United Utilities Group PLC (LON: UU) share price fell 1.52% after releasing its half-year results for the six months to 30 September 2023. The company reported an underlying operating profit of £271 million, with a reported operating profit of £241 million.

The company’s underlying earnings per share (EPS) stood at 13.2p, up from -1.8p, while reported EPS was 17.1p. The company maintained a low level of gearing at 59%, and its solid credit ratings provide future financial flexibility.

A significant milestone was achieved through a pension scheme buy-in transaction, covering approximately two-thirds of liabilities. Funding for AMP7 (Asset Management Period 7) is secured, with liquidity extending into 2026. An interim dividend of 16.59p has been recommended, per company policy.

As per guidance, the company anticipates doubling its Outcome Delivery Incentive (ODI) reward this year, exceeding £50 million. United Utilities is on track to achieve a 4-star status for 2023 in the Environmental Agency's Environmental Performance Assessment.

United Utilities is committed to tackling overflows more aggressively, following regulatory approvals that allow for the acceleration of infrastructure investments in this area. Progress is being made in the leakage reduction program, with the company forecasting its best-ever performance.

In customer satisfaction, United Utilities was ranked 1st among Water and Sewerage Companies (WaSC) and 4th out of 30 utility companies in the UK Customer Satisfaction Index.

The company actively supports customers, with over 370,000 households on the Priority Services register and over 350,000 customers benefitting from affordability schemes during this Asset Management Period (AMP).

Louise Beardmore, Chief Executive Officer, said: “We are announcing a robust set of underlying financial and operational results today, in what has been a busy six months, including the submission of our ambitious business plan for 2025-30. 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. We are doing more to protect and enhance the North West's waterways and natural habitats, and we're on course to attain the highest 4-star rating from the Environment Agency for 2023.”

United Utilities (UU) share price. 

The United Utilities (UU) share price fell 1.52% to trade at 1068.50p from Wednesday’s closing price of 1085.00p.