Costs take toll on Welsh Water profit before tax
Dŵr Cymru Welsh Water, has reported a £21.5m loss before tax in the six months to 30 September 2018 – down from a £21.5m pre tax profit at the same state in 2017 after a hike in operating and finance costs.
Finance costs including fair value gains on derivatives had more than doubled to £60.5m compared to the interim figure last year. Fair value gains in 2018 were however, down by nearly £30m from 2017.
Year-on-year operating costs up 7.7% to £164.6m and depreciation and amortisation up 6.3% to £143.4m were the main drivers behind a 21% drop in in interim operating profit to £ 39m compared the the previous year.
Interim revenue was up 3.8% to £391.7m.
“Record” capital investment of £219 million in the last six months went to “maintain and improve the resilience of its water and wastewater services.” The company said it was “on track” for capital expenditure of £460 million in the year to March 2019.
Welsh Water said it was earmarking £7 million a year to help customers who struggle most to pay their water bills
Company chief executive, Chris Jones (pictured), said: “Already in 2018 we have experienced several instances of volatile weather events – including the longest drought that we’ve had in more than a century. This shows that our long-term plan to invest in resilience is necessary to ensure we can continue to earn the trust of our customers – both now and for generations to come.