United Utilities has reported an overall profit increase of 16 per cent in its preliminary results as the firm prepares to sell its north England electricity distribution division.
Commenting after the strong results, chief executive Philip Green said the company would focus on the water aspect of the company's business.
"We are initiating a sale process for our electricity distribution assets," Mr Green said.
"Our water business represents over 85 per cent of the group's regulatory asset value and we believe that shareholders' interests are best served by our focusing on the much larger water asset base, which offers significantly more growth potential than our electricity assets."
Underlying tax profit before tax was £561 million and United Utilities' north-west segmental profit increased by 18 per cent.
The firm said it expected £10 million in cost savings from management reorganisation and the sale of operating divisions no longer required.
Mr Green added: "We have delivered good profit growth, with a strong financial and operational performance.
"Our strategy is to focus on our core skills of managing water, wastewater, electricity and gas networks to create a world class operator of utility infrastructure. This strategic focus has helped deliver operational and service improvements.
"We have restructured our management organisation, around separate asset operator and asset owner functions, to sharpen our commercial focus and help deliver and sustain further performance improvements."
The chief executive took over at United Utilities last April and shares in the company increased after its latest trading update.
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