(Reuters) - Severn Trent (LON:SVT) said on Wednesday it had a strong start to this financial year, with encouraging reservoir levels helping the British water supplier stay well-positioned for the summer months.
The company, which announced its plans for capital investment of up to 1 billion pounds ($1.29 billion) to boost its environmental standards in May, added that it was on track to meet its environmental targets for the year.
Water companies in Britain have been under scrutiny over its raw sewage releases, leading to the poor quality of rivers and beaches.
The country's biggest water utility Thames Water, which was under threat of nationalisation weighed down by 14 billion pounds of debt and under pressure over sewage releases into British rivers and seas, was saved after investors pledged a huge cash injection to help manage its crisis.
"The business is well placed to deliver the progress needed," Severn Trent CEO Liv Garfield said in a statement.
The group added that it had 45% of its net energy exposure for 2024-2025 locked in at significantly lower rates than those for 2023-2024.
Reservoir levels are at 77%, more than 10% higher than a year ago, the company said.
($1 = 0.7733 pounds)