Anglian Water Group Ltd. was penalized for letting raw sewage leak into the sea. Since then, the company has cut dividends for most investors.
Anglian Water Group Ltd. cut dividends for most investors weeks after Britain’s regulator clamped down on shareholder payments and the business was penalized for letting raw sewage leak into the sea.
The company said it will pay its parent firm about £80 million ($99 million) in dividends for the year to March. After receiving criticism for last year’s dividend, the company’s ultimate shareholders will not get one.
Due to underperformance, Anglian’s parent firm received £26 million less and faced £22 million in fines.
In April, the Environment Agency fined Anglian £2.65 million, the largest environmental penalty for a water business since Southern Water was fined £90 million in July 2021.
Ofwat announced additional powers to halt dividend payments if water businesses fail to preserve the environment or have sufficient financial resilience in March.
Sewage spills into England’s rivers and sea have fueled public animosity at privatized water firms. As Britain’s water system still leaks, last summer’s limitations irritated families.
Anglian said Thursday that revenues rose 7% to about £1.5 billion. According to preliminary statistics, EBITDA rose to £803 million.
“We still have a lot to do,” said Anglian CEO Peter Simpson. Extreme weather prevented us from meeting our outcome delivery incentive objectives last year.
In recent weeks, three additional water companies—Severn Trent, South West, and United Utilities—announced dividends of almost £500 million.
Abu Dhabi Investment Authority and Canada Pension Plan Investment Board hold Anglian Water.
Anglian Water was the first UK water business to issue public bonds last year after a summer of political criticism for persistent leakage amid a heat wave and drought.
