Shares in United Utilities rose as much as 1.27 per cent to 998.50p per share today after it said first half trading remained in line with expectations.
The London-listed firm expects group revenue to be slightly lower in the first half of 2016-17 due to the accounting impact of its Water Plus joint venture with Severn Trent.
But underlying operating profit during this period is likely to come in "marginally higher" than a year earlier, it added.
United Utilities' issued a disappointing set of results in the first half of 2015 which it blamed on regulator Ofwat's new price controls.
Infrastructure renewals expenditure will be slightly lower year-on-year in the first half, but this should increase in the following six months due to the phasing of its five year £3.5bn spending plan.
The company's group net debt at 30 September 2016 is also expected to be slightly higher than the position at 31 March but its debt-to-equity ratio remains "comfortably within our target range".