Financial costs fuel half-year pre-tax loss at Welsh Water

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.