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Pennon profits lifted by healthy EfW performance

Pennon has said a 2.3% growth in profits before tax in the first half of the year has been backed by “good progress” on Viridor’s energy-from-waste (EfW) facilities.

Posting its half-year financial results, Pennon reported a 5.6% increase in revenue compared with the same period last year, to £723.9m. Profit before tax increased to £131.1m.

Pennon said its EfW portfolio was operating “in excess of base expectations”, and that new facilities coming online – in Glasgow, Beddington and Dunbar – would secure further growth.

Viridor said its £252m Avonmouth EfW (pictured) is “progressing well” and is expected to become operational in 2020.

According to a recent Tolvik report, in 2016 Viridor had 21.9% of the UK EfW market, based on input tonnages.

Pennon also said a “satisfactory financial outcome” had been reached with the Greater Manchester Waste Disposal Authority after its £3.8bn PFI contract was terminated in August.

The company said that success in new Asian markets had partly mitigated the impact of China’s restriction on imports, but added that it was “cautious” over the future price of recycling.

Chris Loughlin, Pennon chief executive said: “Pennon has delivered robust performance in the first half of 2017-18 across water and waste activities.

“Good progress is being made to bring Viridor’s remaining four energy recovery facilities in the portfolio on-stream, with three in commissioning in 2017-8 and the final facility under construction.

“The expansion of Viridor’s energy recovery facility portfolio will support Pennon’s earnings growth to 2020 and beyond.”

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