UK's Severn Trent doubles incentives estimate, posts rise in profit

Nov 23 (Reuters) - British water utility Severn Trent Plc reported a 4.4 percent rise in half-year profit, and more than doubled the incentives it expects to get from water industry regulator Ofwat.

Severn Trent said it now expects to earn at least 50 million pounds ($67 million) in outcome delivery incentives, compared with its previous forecast of about 23 million pounds.

Water companies are rewarded when they meet or exceed targets, and are penalised if they fail to meet them. These targets include timely project completions and better customer services.

Severn Trent, which supplies water across the UK’s Midlands, said underlying profit before interest and tax rose to 287.8 million pounds from 275.7 million pounds, a year earlier.

The company said turnover rose 3.7 percent to 850.4 million pounds in the six months ended Sept. 30, helped by higher prices, cost savings and its acquisition of water company Dee Valley Water.

$1 = 0.7509 pounds Reporting by Arathy S Nair in Bengaluru; Editing by Saumyadeb Chakrabarty