Severn Trent Water
101 articles about "Severn Trent Water"
UK water shares ended December 2000 lower, underperforming the broader FTSE market index and reflecting investors’ caution.
The progressive consolidation of the water industry continued in 2000, if at a slower pace than last year. Several notable transactions, most recently RWE’s acquisition of Thames Water, prompted GWI to ask Avalon Trust’s Owen Quattlebaum what this means for investment fund managers focused on water. This month’s Investor’s View contains Mr Quattlebaum’s response.
Shares of UK water companies ended November in decline following the release of half-year results showing an industry-wide average drop in pre-tax profits of around one third on profit levels for the same period a year ago.
October proved a month of some volatility in the water industry, with shares on both sides of the Atlantic effected. In the UK, shares of the major water companies rose broadly at first, dropped sharply in the middle of the month, rising dramatically again, only to end the month close to where they started.
The takeover of Thames Water by German multi-utility RWE dominated the news last month. On 25 September, following a week of speculation, Thames announced that it would be acquired by RWE.
The Turnbull Code on Internal Control is set to become a mandatory London Stock Exchange listing requirement later this year. All listed companies – including water utilities – will be required to establish mechanisms to meet the necessary risk management obligations. With this in mind, Andreas King of SERM provides GWI with a preview of water companies’ environmental risk ratings.
With the resignation of CEO Rebecca Mark, Azurix’s future looks more uncertain than ever. The company has fallen short of original expectations from the June 1999 IPO, consistently underperforming and failing to meet analysts’ revenue estimates. The stock price has dropped 47% since the start of the year. Major shareholder Enron must now decide what to do with Azurix.
Western Power Distribution (WPD) finally emerged triumphant in the bitter four-month struggle for control of Hyder last month. But just as one point of contention had been resolved, another opened up when Severn Trent announced that it would be taking Dwr Cymru to court.
Vivendi dominated the news in Europe in June with the planned IPO of its Environment Unit and the three-way merger with Seagram and Canal Plus making the headlines. Shares in the French conglomerate ended the month lower amid concerns over the merger.
The Avalon Trust was founded two years ago to provide a full trust and investment service for individuals and institutions wishing to invest their funds in a socially responsible manner. In this month’s Investor’s View, Owen Quattlebaum, chief investment officer, explains why Avalon decided to set up a water fund.