Energy recovery gives boost to Pennon group growth
In a trading statement issued this week Pennon has highlighted its portfolio of energy recovery facilities within its waste business, Viridor as a source or growth for the group. And its South West Water arm is “on course to remain at a sector-leading 11.7% return on regulatory equity” according to group chief executive, Chris Loughlin (pictured).
Laughlin said Viridor was on track to achieve some £100 million of earnings before interest tax, depreciation and amortisation from its energy recovery facilities. “Growth is being delivered through Viridor’s twelve energy recovery facilities across the UK,” said Laughlin.
Pennon has agreed terms with investment bank, Nomura, to unwind a derivative, entered into in 2011 and due to end in 2027. The move followed “a change in the economic benefit” of the derivative resulting from “change in legislation” outlined in Pennon’s half year results for 2016-17 which resulted in a fair value for the derivative as a £39.5m liability.
Pennon intends to announce its full year results for 2016/17 on Wednesday 24 May 2017.