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Thames Water has confirmed it paid two recent dividends value £158.3 million in March, because the closely indebted firm stated it’s unlikely to lift recent funds earlier than December.
The water firm, which is creaking beneath a debt pile of greater than £15 billion, stated it paid the dividends to assist fund two of its holding firms, Kemble Eurobond and Thames Water Restricted, that are in monetary hassle.
Ofwat has already stated it’s “minded” to take motion towards Thames Water for smaller £37.5 million dividend fee in October 2023.
Beneath new guidelines launched final yr, water firms with poor monetary and environmental data are usually not allowed to pay dividends.
Thames Water has confronted widespread criticism for ranges of sewage leaking into waterways. Occasions together with this yr’s Boat Race and Henley Royal Regatta confronted warnings over ranges of E.coli within the water.
It paid a complete of £196 million in dividends final yr.
The agency stated it’s nonetheless searching for recent funding wanted to take care of and replace its infrastructure, after traders pulled the plug on £500 million of emergency money earlier this yr.
It stated it has £1.8 billion of liquidity, sufficient to fund its operations till the tip of Could subsequent yr, however that it wants new funding.
Thames Water stated revenue elevated to £75.4 million for the yr ending March 31, up on a £30 million loss the yr earlier than.
Income elevated 11% to £2.5 billion.
Air pollution incidents elevated to 350, up on 331 final yr, which it blamed on a rainier-than-expected yr.
The variety of “severe pollutions” decreased by 18%, Thames Water stated.
It stated it spent £2 billion on sustaining and updating its infrastructure final yr.
The monetary replace might be adopted on Thursday by a draft verdict from Ofwat on water firms’ five-year spending plans and invoice will increase to 2030.
That may kick off six months of negotiations with Ofwat, forward of its closing choice in December.
The method of securing new money is “not anticipated to conclude” till after Ofwat’s closing choice.
Chief government Chris Weston stated Thames had taken “casual soundings which have proven there may be curiosity out there”.
