Vol 4, Issue 6 (June 2003)
Need to know
- COMPANY RESULTS
UK: United Utilities (UU) announced its preliminary results for the year ended 31 March 2003.
UK: Following recent market rumours about the future of International Water Limited (IWL), GWI contacted Bechtel to get the full story.
Abu Dhabi: TotalFinaElf announced that the Taweelah A1 power and desalination plant had been commissioned – on schedule and on budget.
United States: NADB signed a $4.04 million grant with the Heber Public Utility District for a project to upgrade and expand its water treatment & distribution system and wastewater collection system.
United States: Brian Chase joined the San Francisco office of Nossaman Guthner Knox & Elliott.
- A world of water without capital
Is it time for water companies to concentrate on what they do best and leave the bankers to finance the infrastructure?
- Multilateral headache
What to do next now that private water companies are reluctant to participate in developing markets?
- Bechtel gives more details of Iraq reconstruction work
Contractors and equipment suppliers eager for a slice of the pie turned up at conferences in the US, UK and Middle East last month.
- Chicago wastewater study
Black & Veatch and Greeley & Hansen have won a contract to plan capital improvements for a 1,200MGD wastewater plant.
- Chinese attraction
China is still a good proposition for private investors – both local and international.
- Earth Tech wins Connecticut O&M contract
The company will be responsible for O&M services and asset management for the New London water and wastewater systems.
- Framework deals agreed by environment ministry
The Italian environment ministry has closed framework agreements worth €10 billion for the provision of clean drinking water.
- Italian PSP gets political again
Rules that would have given local authorities greater flexibility in assigning services to private firms have been scrapped from a new fast-track law going through parliament.
- Jordanians extend Disi deadline again
Bidders have been given until the start of July to submit their offers for the 40-year BOT project.
- New Northumbrian structure questioned
There are concerns that the newly floated Northumbrian Water Group could struggle to raise capital cost-effectively following a downgrading of its debt.
- Sabesp 1Q profits up
Exchange rates have worked in the company’s favour in the first quarter of the year.
- Suez’s perspective
The Northumbrian deal has enabled Suez to further reduce its debt burden.
- UK companies get ready for 2004 review
While stories about the industry’s preference for highly geared debt structures have made all the headlines in recent months, water company business managers have been quietly getting on with the task of preparing for the next periodic review.
- Water company efficiencies
Can the companies really become more efficient?
- Come on in – the water’s lovely
Any investor who bought into one of the three big international water companies, Suez, Veolia (then named Vivendi Environnement) and RWE in June 2001 must feel now as if they had spent the last two years in an acid bath.
- Do water and electricity mix for RWE?
GWI’s German correspondent examines the importance of RWE’s investment in water as the group is swamped with debt and facing a difficult fight in the energy market.
- Italy: Positioning for a privatisation play
Privatisation should bring rich pickings for investors – but only those with patience.
- Philadelphia Suburban: Hedge Fund in miniature
Matthew Johnson looks behind the success of the largest investor owned utility in the US.
- Real value in Brazil
Brazil’s Sabesp offers an opportunity to invest directly in an emerging market water system. GWI’s Brazilian correspondent finds strong analyst support for it.
- Spain: Overshadowed by Argentina
In theory, Spain should be a good market for water investors. The combination of increased wealth, population pressure in its arid areas, and the trend towards privatisation all bode well. But the reality is somewhat different.
- Three point turnaround
Christopher Gasson looks at what distinguishes the three major players in the water industry, and whether they have turned a corner on their recent performance.
- UK: Financial engineers welcome
Since last month’s flotation of Northumbrian Water Group, the London Stock Exchange offers a choice of six water-related investment vehicles. Although each faces the same regulatory regime in its core water business, the difference lies in their non-water interests and their financial structure. The alternatives offered to investors are as follows:
- Water technology pulls ahead
In their regular monthly analysis of water related shares, Clay Landry and Matthew Johnson trace the impact of the weakening dollar on the sector.
- Zenon Environmental: Having it both ways
How has the Canadian membrane specialist been able to capture the best of both worlds?