Thames Water confirms £158m dividends despite debt and sewage leaks anger

Support truly
independent journalism

Our mission is to deliver unbiased, fact-based reporting that holds power to account and exposes the truth.

Whether $5 or $50, every contribution counts.

Support us to deliver journalism without an agenda.

Thames Water has confirmed it paid two fresh dividends worth £158.3 million in March, as the heavily indebted company said it is unlikely to raise fresh funds before December.

The water company, which is creaking under a debt pile of more than £15 billion, said it paid the dividends to help fund two of its holding companies, Kemble Eurobond and Thames Water Limited, which are in financial trouble.

Ofwat has already said it is “minded” to take action against Thames Water for smaller £37.5 million dividend payment in October 2023.

Under new rules introduced last year, water companies with poor financial and environmental records are not allowed to pay dividends.

Thames Water has faced widespread criticism for levels of sewage leaking into waterways. Events including this year’s Boat Race and Henley Royal Regatta faced warnings over levels of E.coli in the water.

It paid a total of £196 million in dividends last year.

Thames Water serves millions of customers (Andrew Matthews/PA)
Thames Water serves millions of customers (Andrew Matthews/PA) (PA Archive)

The firm said it is still looking for fresh funding needed to maintain and update its infrastructure, after investors pulled the plug on £500 million of emergency cash earlier this year.

It said it has £1.8 billion of liquidity, enough to fund its operations until the end of May next year, but that it needs new investment.

Thames Water said profit increased to £75.4 million for the year ending March 31, up on a £30 million loss the year before.

Revenue increased 11% to £2.5 billion.

Pollution incidents increased to 350, up on 331 last year, which it blamed on a rainier-than-expected year.

The number of “serious pollutions” decreased by 18%, Thames Water said.

It said it spent £2 billion on maintaining and updating its infrastructure last year.

The financial update will be followed on Thursday by a draft verdict from Ofwat on water companies’ five-year spending plans and bill increases to 2030.

That will kick off six months of negotiations with Ofwat, ahead of its final decision in December.

The process of securing new cash is “not expected to conclude” until after Ofwat’s final decision.

Chief executive Chris Weston said Thames had taken “informal soundings which have shown there is interest in the market”.

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top