United Utilities to maintain dividend

24th Jul 2009 07:04

Water supplier United Utilities said it is on course to continue its dividend payment policy after a successful year in a challenging economic environment.The day after regulator Ofwat outlined its proposals for all the water companies' price plans over the next five years, United said trading in the period between April 1 and July 23 has been in line with expectations.Shares in water companies, including United, fell yesterday after Ofwat's proposals failed to meet their hopes. Its plans for United Utilities include a £3.4bn capital investment programme and an average annual real price decrease of 0.6% over the period between 2010 and 2015.United said it is reviewing the proposals ahead of the final price determination, which is scheduled for November 2009.Chairman John McAdam was due to say at the group's annual meeting today that United will pay a final dividend of 22.03p a share, making a total of 32.67p for the year and consistent with its dividend policy. Yesterday's proposals from Ofwat raised fears that water companies may not be able to maintain their dividend policies.The firm said it delivered strong profit growth and operational improvements during the past three months.