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  • by Karma Loveday

Non-cash losses push further half-year pre-tax loss at Thames

A £100m surge in financial losses at Thames Water was the principal driver of a 36.7 hike in the company’s underlying, half-year loss before tax reported at £386m.

Net finance costs were up £43m due to a £61m hike in interest on borrowings and the £21m impact of a restructured interest rate profile of index-linked derivatives. These were offset by £27m in greater capitalisation of borrowing costs and £11m in fee income from financial instruments.

Net losses on financial instruments comprised:

  • an additional £39 million net fair value loss on derivatives, which reflects higher inflation expectations, and

  • a £61 million increase in net exchange losses on foreign currency borrowings.

Underlying (excluding revenue from Bazalgette Tideway) earnings before interest depreciation and amortisation (Ebitda) for the six months to 30 September 2021 was up by £49.3m year-on-year at £547.9m. That arose chiefly from a £66.3m revenue increase to £1,062.3m net of Bazalgette revenue offset by a £25m increase in net operating costs excluding depreciation and amortisation .

Operating profit was up £39.5m to £226.5m

  • In its interim report for the half year to 30 September 2021, Thames Tideway parent, Bazalgette Holdings, has reported a 1% increase in costs for the period to £39m following a programme review. The Tideway project cost estimate is £4.2bn and its estimated £20-£25 annual cost range for Thames Water bill payers “remains unchanged” the company reported.


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