Thames Water reports revenue growth amid challenges

Published 12/10/2024, 03:10 PM

LONDON - Thames Water Utilities Limited has reported a 10% growth in underlying revenue to £1.3 billion for the six months ending on September 30, 2024. This increase is attributed to an inflation-linked rise in charges for water and wastewater services. The company's underlying EBITDA also rose by 14% to £715 million, reflecting the higher revenue and disciplined operating costs.

Despite these financial gains, Thames Water encountered a statutory loss after tax of £190 million, which includes exceptional post-tax costs of £427 million and income related to Bazalgette Tunnel Limited. Capital expenditure remained high at £1.0 billion, aimed at investing in the aging assets and improving network resilience.

Operational performance showcased a 23% reduction in lost-time injuries and a 19% reduction in total complaints. Leakage reached an all-time low with a 4% reduction, while supply interruptions increased to 3 minutes and 42 seconds. The company, however, faced a 40% increase in total pollutions due to record rainfall.

Thames Water's financial resilience was boosted by a committed liquidity of £1.5 billion as of September 30, 2024. The company also initiated a Liquidity Extension Proposal, which includes a new super senior facility of up to £3.0 billion and a two-year extension of all debt maturities. Over 75% of Class A creditors have signed up to the Transaction (JO:TCPJ) Support Agreement ahead of a convening hearing scheduled for December 17, 2024.

The company appointed Julian Gething as Chief Restructuring Officer and continued to make progress in its equity raise process. The next critical step for Thames Water is securing an investable Final Determination from Ofwat, which is crucial for the company's future plans and operations.

Thames Water's sustainability efforts were highlighted by the Thames Tideway Tunnel and Lee Tunnel, which captured a significant volume of sewage during testing. The company also provided £67 million in financial assistance to customers in vulnerable circumstances.

The information provided is based on a press release statement from Thames Water Utilities Limited.

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