Drought extends to Thames Water income

30-11-2006

Drought extends to Thames Water income
Thames Water has said that continuingly low rainfall and the cost of replacing outdated infrastructure have made a 17 per cent dent in its profits.

Announcing its results for the six months ending September 30th, the utility revealed that profit was down to £201.7 million, with operating costs rising in turn by 13 per cent to £512.1 million.

The firm's German parent company RWE last month accepted an £8 million acquisition bid from a consortium led by Australian bank Macquarie, but Thames Water insists it is in a good position to bounce back for its new owners.

Jeremy Pelczer, the utility's managing director, admitted that the last half-year had been a "challenging time", largely attributable to 19 consecutive months of below average rainfall.

"Operational costs have been high during this period, although a comprehensive restructuring process is in train which will reduce these going forward into the next period improving our efficiency," he said.

Mr Pelczer added that Thames Water was well placed to replace hundreds of miles of Victorian-era water pipes within the next four years.


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