Iren is exposed to the potential changes, as almost 25% of its expected 2018-2023 EBITDA and more than 30% of capex is related to the water regulated network.
Concession Renewal Risk: Apart from water, Iren continues to have concession renewal risk in gas distribution and waste collection (in some districts) and around half of the installed hydro capacity.
Iren would benefit from high prices for its hydro production (around 1.3TWh per year).
Iren notes: "These are the same pumps as used in the Burj Khalifa - two of them from Unibeton and two from Unimix.
"As you go higher, pressure is a problem, and you face blocking of the pumps or bursting of the pipeline during casting - so at certain stages we have to change the mix to reduce the pressure or to increase the workability," says Iren.
Iren notes: "This is with the supplier: they have their own quality control checks, laboratories and quality checks.
Iren expects to deleverage to 2.3x net debt/EBITDA in 2022 (based on the company's definition), compared with target leverage of up to 3.0x.
Regulated Activities, EBITDA Mix: Iren operates in electricity, gas and water distribution.
Concession Renewal Risk: Iren has concession renewal risk in gas distribution, water distribution and waste collection (in some districts) and around half of the installed hydro capacity.