UK water utility Severn Trent's profit rises; forecasts highest-ever annual capex
Adds peer analysis in paragraph 4, details and background throughout
Nov 20 (Reuters) -British water utility Severn Trent SVT.L posted a higher first-half profit on Wednesday and forecast capital expenditure for the year to come at the upper end of its guidance, supported by lower costs and pricier customer bills.
The company said that it benefited from lower inflation during the year that eased its cost pressures.
The Coventry-headquartered utility had earlier forecasted capital expenditure for the current financial year to be between 1.3 billion pounds ($1.65 billion) and 1.5 billion pounds, making this upgrade its highest-ever annual capital investment.
Peer United Utilities UU.L, which serves the adjoining North Western England region, last week retained its forecast for annual revenue to rise by about 10% on an yearly basis after a surge in its half-year profit.
Water utilities in Britain have been under extreme regulatory and public scrutiny, especially as the largest of the British water suppliers, Thames Water, risks running out of funds if financing talks with creditors fall through.
Severn, which was formed in 1974 and provides water services in England and Wales, posted a profit before interest and tax of 297.8 million pounds for the six-month period ended Sept. 30, up from 255.1 million pounds last year.
($1 = 0.7878 pounds)
Reporting by Prerna Bedi and Yamini Kalia in Bengaluru; Editing by Rashmi Aich
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