By Jaime Llinares Taboada
Pennon Group PLC said Friday that its performance in the first half of the financial year continues in line with internal expectations.
The U.K. water utility said the coronavirus pandemic is expected to have a negative impact of 10 million pounds ($12.7 million) on its revenue during the year ending March 31, 2020. This is as the virus particularly disrupted water usage across business and commercial customers.
In addition, the group said it has received GBP3.7 billion cash out of the GBP4.2 billion Viridor sale. However, Pennon continues to review methods to return value to shareholders and to consider market opportunities.
"Any use of capital to pursue an investment opportunity will be compared with the alternative of returning that capital to shareholders, ensuring our strong focus on financial discipline is maintained," the utility said.
Pennon has already used some of the Viridor proceeds to repay two-thirds of the GBP900 million debt it had announced it would retire. It has also made a GBP36 million contribution to the group's pension schemes.
Write to Jaime Llinares Taboada at firstname.lastname@example.org; @JaimeLlinaresT