Thames Water announced progress in its efforts to raise funding as part of the next phase of its rescue plan, following securing a £3bn lifeline to sustain operations into the new year.
The UK’s largest water supplier, burdened with nearly £18bn in debt, has been grappling with severe cash shortages after its current owners declined to inject additional funds earlier this year. This has prompted the Government to prepare for potential nationalisation.
Chief Executive Chris Weston highlighted the company’s progress in its turnaround strategy, noting an improvement in profits. However, its half-year results revealed worsening environmental performance, with a 40% increase in spills attributed to record rainfall.
Weston stated: “We’ve reached key milestones in establishing a more stable financial platform, including agreeing on a liquidity extension proposal and advancing our equity raise process.”
While the £3bn lifeline provided by creditors in October offers temporary financial stability, Thames Water’s long-term viability hinges on securing new equity and restructuring its debt. The company is currently conducting a competitive process to raise £3.25bn in equity to fund investments through 2030. Among the bidders are British financial investor Covalis Capital and France’s Suez Group.
For the six months ending September, Thames Water reported a 14% increase in underlying earnings to £715m, supported by improved cost management.
