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...The government has drawn up contingency plans for Thames Water dubbed Project Timber under which the business would be nationalised and split in two, with its debts expected to go on the public balance sheet...
...Investor jitters come as Ofwat is pushing them to inject more cash into the utilities....
...The parent company’s owners include NatWest’s pension fund, a Canadian pension fund and an Australian infrastructure investor....
...Thames Water has brought in advisers, including EY and Teneo, which advised the government on the collapse of the energy supplier Bulb....
...But Thames’ nine shareholders, which include the Canadian pension fund Omers, the UK’s university pension fund scheme USS and the Abu Dhabi and Chinese sovereign wealth funds, would face large losses, which...
...However, its largest investor, the pension fund Omers, took a 30 per cent write down on its Thames Water stake last year, raising concerns over investors’ willingness to put more cash into the business....
...Energy analysts suggested the move could help improve BP’s credit rating, because rating agencies can assess pensions as liabilities....
...The company argues it has enough cash to last for 15 months, or until July next year....
...Market-based cash-balance plans pool resources and offer the option of payments for life like a traditional pension, but the final payout is based on the plan’s investment returns, limiting the employers...
...Thames Water has said it has enough cash to last until July next year....
...So possibly the proposal could be reversed with all local authority funds handed to the government (which could certainly benefit from the cash) and the liabilities placed off balance sheet (where the implicit...
...It is expected to produce a new business plan in coming days which could include a change in bill proposals....
...Thames Water on Monday updated its business plan to increase the amount it plans to spend on its network to combat environmental issues such as sewage spills by £1.1bn to £19.8bn....
...The deal was followed in 2022 by the Ontario Teachers’ Pension Plan paying £1.5bn for a 25 per cent stake in the transmission lines owned by SSE in Scotland....
...Without fresh equity Thames would have to slash costs and investment and focus squarely on cash preservation....
...Consultancy Bain & Co has warned of a “towering backlog” of companies that must be sold so cash can be returned to investors such as public pension funds which have become overexposed to unlisted investments...
...The company said it had £2.4bn of cash and access to other overdrafts, enough for it to continue operating until 2025....
...The regulator is not due to make its draft decision on company business plans, including increases to customer bills, until June....
...Now Thames Water says it will not be able to deliver its turnaround plan if it does not receive more cash from shareholders....
...Predicting how climate change will feed through to companies’ balance sheets is enormously complex, and there are risks in suggesting false precision....
...Collectively, corporate Japan possesses in the order of $2tn to $3tn of cash on [its] balance sheets.”...
...Ailman’s departure means two of the biggest pension plans in the US are searching for new investment chiefs....
...Europe’s third-largest pension fund has sold €2.8bn of its holdings in oil groups including Shell, BP and TotalEnergies because they were not doing enough to produce credible plans for the clean energy transition...
...Sensibly, she wants to focus on the full public sector balance sheet while targeting the current, rather than the overall, fiscal balance....
...Fiscal policy: Is the state pension really ‘a Ponzi scheme’? Labour markets: UK wages: which sectors are driving up pay?...
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