Thames Water interim operating income falls 23% as costs climb

Operating profit at Thames Water fell 23% to £174.5m from the same period last year as operating cost climbed while revenue only ticked up for the six months to 30 September 2022.

Revenue was up £31m to £1,093m largely from increased prices with operating expenses increased 11% at £969m and net finance expense up 66% at £261m.

A £494m half-year profit before tax, up from a £616m loss over the same period in the previous year was buoyed by £580m net gain on financial instruments from a £456m loss in 2021.

Thames’ figures included the charges billed to Thames Tideway Tunnel. They included revenue flat at £42.2m.

The company reported a 43% reduction in complaints and 29% reduction in backlogs for the half year period.

Sewer flooding incidents year-on-year were down almost 60% and total pollution incidents since September 2021 were down 5%.

Water metrics, including leakage and supply interruptions deteriorated, “due to prolonged hot summer leading to drought conditions across much of the UK.”