WATER – A SAFE-HAVEN

Turnover in the water industry

In England and Wales

(£ billion,2000-01 PRICES)

DATA SOURCES:
FIGURE 1 – Ofwat (1999), Future Water and Sewerage Charges 2000-2005, Final Determinations, Office of Water Services, Birmingham
FIGURE 2 – QFinance report on water industry trends, Lux Research of the United States

Capital investment in water in the UK

The investment in the industry has grown substantially and consistently
DATA SOURCE:
FIGURE 3 –Ofwat and Water UK

Going by the massive capital investment, huge returns must be expected? Let’s compare returns with other industries

The investment Vs returns of the whole water industry is lower than that of manufacturing and service companies of other sectors

Data SOURCE FIGURE 4 – Water UK, National Statistics and Ofwat

Yet water utilities are expected to attract huge investments over the next eight years

DATA SOURCE: FIGURE 5 – QFinance report on trends in Water industry


The industry will continue to grow at a consistently average speed while other fast-growing sectors might fizzle out after a boom thus making water stocks, bonds and ETFs a safe-haven in the long-term

– Mitali

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