Financial cost increases left Dwr Cymru Welsh Water with an interim loss before tax for the six months to 30 September 2019 up nearly 2.5 times to £119.9m from a loss of £35.1m at the same point last year. The not-for-profit company’s underlying interim pre-tax loss before financial costs was down £1m from the previous year at £27.4m
While bond interest and other financial expenses were flat compared to the previous half-year, at £66.3m, the company reported a fair value loss on derivatives at £91.9m – up from a £6.7m loss in 2018.
Interim operating costs were up £3.8m to £358.9m including a £7m fall in expenditure and an £11.6m hike in depreciation and amortisation. Operating profit was up £0.9m to £38.9m on revenue up £4.7m to £397.8m.
The company reported capital investment for the half year at £218m (£219m for at the 2018 interim) It said it expected to invest some £440m by the end of the year.