Tetra Tech Beats Q3 Estimates, Raises Fiscal 2026 Outlook

Bangkok Governor Chadchart Sittipunt explained that the Bueng Khu Bon and Bueng Bang Chan projects are studies by the Bangkok Metropolitan Administration that apply the monkey cheek concept, not projects directly stemming from royal initiatives. He confirmed that the consideration was based on academic data, drainage efficiency, budget value, and public benefit. After the major flood in 2011, the Drainage Department studied approaches for creating six water retention ponds, with four projects previously halted after public consultation processes. Bueng Khu Bon and Bueng Bang Chan remained as the two projects under continued consideration. But upon reviewing the details, the investment amounts were found to be high, so they had to be compared with other approaches. According to the consultant team's study, the system-wide monkey cheek approach would cost about 11 billion baht, while the approach of improving canals and the drainage system would cost about 6.7 billion baht. The BMA therefore considered improving canals to convey water faster, alongside enhancing the efficiency of Bueng Nong Bon and the drainage tunnel system. On the issue of connections with a real estate company, Chadchart stated that he had previously served as an executive of Quality Houses Public Company Limited, which had filed an objection to a project in the Phatthanakan area through the process prescribed by law. But decisions about the project are the authority of the Bangkok Metropolitan Administration, and the cancellation of the project occurred during the term of a previous Bangkok governor, while he did not hold the position at that time. As for water management principles, an effective monkey cheek must have water retention areas, water intake systems, and appropriate water discharge systems. Bueng Khu Bon and Bueng Bang Chan have a combined capacity of about 1 million cubic meters, while the volume of rainwater in Bangkok is large and spread across many areas, so the entire drainage system must be considered, not just increasing water storage areas alone. Chadchart stressed that the BMA is ready to listen to additional information from all parties. If there is new information, technical proposals, or facts that differ from the data currently used in its consideration, the Drainage Department is ready to examine and review them carefully.

Pennon Group said on Wednesday it would raise about £550 million through a fully underwritten rights issue and cut its dividend as its new CEO launched an overhaul of the water utility's operations and stepped up investment. The total dividend for the 2026/2027 financial year will be cut to approximately £125 million from £138 million for 2025/2026, with the lower payout applying to both the interim and final dividends, and after accounting for the cut, the rights issue and a bonus factor, Pennon put the implied underlying reduction in dividend per share at approximately 30%, leaving an expected dividend of around 18 pence per share. The rights issue, launched on Wednesday, will fund more investment in the regulated water businesses and supports about £1 billion of additional investment, with full terms in a separate announcement and an international offering circular published the same day. Capital investment in the regulated water businesses over AMP8 is now expected to be approximately £3.6 billion, around £1 billion more than Pennon's original plan based on the AMP8 Final Determination, and the total investment programme is expected to deliver RCV growth of over 40% across AMP8, up from the 34% set at the start of the period. In a draft decision on Ofwat's 2026 cost change process, the regulator provisionally allowed £230 million, or £190 million in 2022/23 prices, which is 76% of the amount Pennon requested, and Pennon estimates it will make around £170 million of further investment through the 2027 and 2028 cost change processes, subject to Ofwat approval, targeting total additional RCV from cost change of £400 million.

Krungsri Securities said in an analysis that TTW Public Company Limited, or TTW, is expected to post net profit of 863 million baht in the third quarter of 2026, down 12% year on year but up 31% quarter on quarter. The water supply business is still growing slightly on higher water sales volumes from TTW and BIE, driven by industrial customers' water demand, but it is being pressured by the profit contribution from CKP, which is expected to be weak year on year because electricity output from the NN2 dam fell about 50% year on year, in line with the dam's inflow, while the gross margin of the SPP power plant declined on higher gas costs. If profit meets expectations, net profit for the first nine months of 2026 would represent 72% of the full-year 2026 figure, slightly below the 75% seen in the first nine months of 2025. For the fourth quarter of 2026, net profit is expected to fall both year on year and quarter on quarter due to a lower gross margin from higher depreciation costs and lower water selling prices, as well as the prospect of a weaker profit contribution from CKP amid El Niño conditions in the second half of 2026. The research team maintains a Neutral recommendation on its unchanged 2027 target price of 10.0 baht, based on the SOTP method. Because TTW's profit trend over 2026 to 2028 is expected to stay roughly flat and unremarkable, the team keeps its Hold recommendation to collect dividends on stable DPS from the water supply business, representing a dividend yield of about 6% per year over 2026 to 2028.

The Royal Irrigation Department is preparing to gradually reduce the discharge below Chao Phraya Dam to 2,400 cubic metres per second, after water volumes from upstream areas have continued to trend downward. Currently, Chao Phraya Dam is releasing water at a rate of 2,500 cubic metres per second, and the water level above the dam stands at +16.38 metres above mean sea level. The reduction will begin at 08:00 today, 7 October, decreasing by about 20 cubic metres per second per hour until it reaches 2,400 cubic metres per second at 13:00, and that rate will be maintained thereafter. As of 06:00, Station P.17 on the Ping River had a flow of 484 cubic metres per second, while Station N.67 on the Nan River had a flow of 998 cubic metres per second, bringing the combined flow at Station C.2 in Nakhon Sawan province down to 1,915 cubic metres per second. Meanwhile, the Sakae Krang River at Station Ct.19 in Uthai Thani province had a flow of 52 cubic metres per second. At the same time, the department has reduced water intake into the irrigation systems on both the eastern and western sides to a combined 487 cubic metres per second, down from 564 cubic metres per second yesterday, so that management of the entire water system remains balanced and consistent with the declining water volumes. The Royal Irrigation Department will continue to closely monitor rainfall and runoff from upstream areas.