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Profits at United Utilities (UU) have fallen by 67% for the half year to 30 September compared to the previous six months.
The company said the dip was partly due to £30 million unscheduled repairs at a treatment plant.
In June, an outlet pipe at the Fleetwood wastewater treatment site cracked and required a complex repair involving a 2km bypass around the fractured pipe. Sewage was redirected to other treatment works and a precautionary bathing warning was issued by the Environment Agency.
A full repair is ongoing, but the plant is operational.
The company said it was on track to double its outperformance rewards in 2023 with strong performance on leakage, which UU said would be its best ever. Last year, the company exceeded its 1.9% reduction target by cutting the amount of water lost through leaks by 4.7%.
Its rate of 124 litres lost per household each day remains above industry average of 113 litres/day.
The company forecast to earn a net outcome delivery incentive (ODI) of £50 million and a total reward of around £200 million for five years to 2025.
Sewer flooding incidents rose during the six months, which the company attributed to heavy rainfall that will cause it to miss this target.
Its profits after tax dropped from £353 million to £117 million, which UU said reflected it selling its renewable energy business in the first half of the year. Operating costs for the year are c£60 million higher than 2022, due to inflationary pressures on energy costs, labour and chemicals.
Chief executive Lou Beardmore said: “We continue to focus on delivering for our customers, communities and the environment – and creating a stronger, greener and healthier North West. We are providing affordability support to over 350,000 customers – more than ever before – and we are on track to achieve our best ever year on customer outcome delivery incentives. We are doing more to protect and enhance the North West’s waterways and natural habitats and we’re on course to attain the highest 4-star rating from the Environment Agency for 2023.”
Gearing rose 1.7% to 59%, which remains among the lowest in the sector.
At the start of October, the company submitted its proposals to Ofwat for the next asset management period (AMP8) from 2025-30. This included £13.7 billion total expenditure, with £1.2 billion of combined sewer overflows (CSOs) spending fast-tracked to be carried out prior to 2025.
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