Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
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Don't get me wrong, I have no issue with sustainability, good community relations/projects, etc and it's promising to see big companies showing a commitment to their envirnomental impact (although a cynic might say this is also down to government policy and a greater public focus in the greener economy being driving factors too).
The likes of Shell, BP, big Pharma and the airline industry (amongst others), you could understand this type of statement more, although I still don't think the results announcement would be the right place.
I just think it strange that a water company would be trumpeting these measures when you would expect this to be part and parcel of their business strategy already. There could have just been a short paragraph on all this with a link to the website for further information. It just seems a bit of a deflection exercise.
Anyway, moan over. Disappointing day (for the SP). Hopefully there will be some concrete news to cheer soon.
Apologies if my comments seem a bit harsh.
Agree appear to be managed by a bunch ot tree huggers (-: They could of laid out a plan to say they are returning some of the money to shareholders starting next april for example. For crying out loud if they want to buy another water opportunity they can borrow at dirt cheap rates anyway!!
This was an oft-repeated word throughout much of the update today.
The SP does not seem to have taken note, currently.
Reading through all the blurb, you could be forgiven for thinking this was a community-run project.
Whilst some of the aims should be applauded, and I get the sentiment, there seems to be an over-emphasis on the green/sustainability/community aspects vs the core business (although they do go hand in hand in this day and age, more than ever).
Seems a little odd for a company results announcement to have so much focus on these areas. I would have thought these are things that should be reported separately and championed on the company website, rather than here.
It's not as if every other company doesn't have similar recognition and suitable sustainability policies these days too, it is pretty much the 'norm'.
I agree that something like a special dividend may not have gone well in the public domain at this time.
Maybe all options are still being considered re: the remaining Viridor money.
Hoped for a bit more from this update and the market did too, it seems.
gla
It is sensitive at the mo but even a small gesture would be a start...........the money came from Viridor sale not the water business.
I guess there's a lot of large companies at the moment with pending capital returns, this, tesco and they maybe don't want to be seen passing hugee dividends, in light of covid and scrutiny. But we've lost a £2 premium on the share price, viridor value disappearing now, let's hope they buy at a single digit pe ratio after selling viridor at high price, otherwise wish I'd sold out long time ago.
Agree.....they really can't keep fobbing the shareholders off........they have all this money and stil have not given a penny back!
See this drifting lower now, as it has done past 6 months, looks like their hesitating on any capital return, hope they invest it well,
Have taken a position here ahead of the half-year results next week.
Not expecting anything out of the ordinary in the figures themselves, given previous company guidance, but will be interested in any company statement accompanying the results, especially with regard to any potential acquisition, or shareholder return from the Viridor sale proceeds (what remains of it).
My holding here is more for diversification and a long term view, than an expectation of short term gains.
gla
they have stated several times that they wish to be a water company rather than a water and waste business. They took over Bournmouth a year or two ago with this in mind. Currently there is a big gap between the two businesses, makes good sense to close the gap to me. Severn Trent did the same with Biffa a few years back as far as selling off the waste arm.
As for over paying, pennon dont ever over pay for anything, experts at sweating their assets operationally.
Any new news on the viridor sale? Acquisition huh, well if that's true, likely they'll have got it for a lower multiple than the sale price of viridor. Maybe they'll buy cineworld
I dont get the logic of selling a high growth business
which they knew inside out and then going and buying something else
My preference was for Virdor ro be separately listed with Pennon
retaining a majority stake.
Well the SP is lookimg a tad ill atm.
Addeds few before the close.
If it's an acquisition, let's hope they don't overpay.
The pension has been offloaded to L&G now.
There is a company wide conference call due on 20th October with some sort of announcement due. Rumour is aquisition.
I severely hope they are reading the potential return to shareholders into the SP, otherwise its gonna drop like a brick if/when they do.. Back to £11 and im out i think
They are swapping a £4.2bn asset for £4.2bn cash, well sort of its £3.7bn but getting rid of some debt too.
So they plan to reduce debt, up the pension and return some to shareholders. The latter two I see as potential share price fallers, albeit the company will be stronger and the pension will be less of a worry and drag going forward. The return to investors for an amount not yet specified, should be similar to a dividend. The share price should fall by the same amount as the payout as that money is walking out the door.
As others have mentioned the SP rose on the news so is being marked in. The consideration going forward is how to maintain the same income from the investment in future. Does this mean using your payout to add more shares? How will the performance be without Viridor but less debt
Why would they go up today due to being ex div on Thursday?
I assume this will already be built in to the price so it will have no impact.
So when the sale is complete will PNN shares go up or down??
Profits down, notice of future dividends decreasing and likely negative impact of Covid19 as businesses use less water and expected customer credit risk. So plenty of reasons, but I remain positive that this is still a good 'safe' investment.
The deal no doubt predicted rising business based on waste volumes and since the deal of course good waste is in short supply and with peoples habits changing as to the waste they and businesses/offices produce then all companies in the waste markets could see permanent reductions. It is an enviro dream not to produce the waste in the first place with longer term impacts to the likes of Veolia, Suez and Pennon/Viridor?
true buy backs would save us having to pay the dividend tax, im not fully sure on buybacks, period, at these kinds of prices we would not be getting maximum value for money given that the shares are still up around 40% on a few months back. Sometimes it kind of feel like value destruction buying back shares at high prices, often it seems earnings slip in such companies and the buy back seems to have little effect on the share price... haven't really thought of the effect on eps, with a buyback and if share holders would benefit. Paying down debt good to pay down some no doubt. But at low interest rates best to keep a good chunk of it, or refinance at lower rates...
Your guess is as good as mine, personally i would prefer to write off debt and but back shares
hi, i was wondering what % of funds might be returned to shareholders? If it was 2B£ this could be near £4.70,
what are your thoughts on the figure to be returned?
thanks
Viridor sold at 4.2b...ho hum
Yep found a story over the bid for Viridor. I suppose we might keep getting bumps as the story unfolds.
"It expects to get first-round offers in the next few weeks"