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Water and waste management group Pennon said it would conduct a strategic review of is focus, growth options and capital allocation policy.
The company said the decision to conduct the review came in light of its 'strong' financial performance and operational progress at Viridor and South West Water businesses.
It also cited the imminent start of of a new regulatory delivery period for South West Water and the near and medium-term growth opportunities at Viridor for making the move.
Pennon said it was on track to meet management expectations for the current financial year and had a strong funding and liquidity position.
Viridor's ten operating energy recovery facilities were performing well, it added, with Avonmouth on track for commissioning during the second half of the 2020 financial year, with operational ramp-up from the 2021 financial year.
The company also said that its joint venture with Grundon Waste Management would build a new energy recovery facility in in West Sussex.
Construction at Viridor's recently-announced £65m plastics reprocessing facility was also underway. The plant was set to contribute to earnings from 2021 financial year.