Funds run low at UK's Thames Water

LONDON, Dec 3: Thames Water is working with government and regulators to try to secure a last-ditch rescue after its half-year results showed it was once again facing a financial cliff edge in its years’ long battle to avoid nationalisation.

Britain’s biggest water company has drawn down 1.43 billion pounds ($1.89 billion) of a 1.5 billion pound lifeline, and it said to will need to access a second tranche early next year, which is subject to conditions.

“As at the date of the approval of these interim financial statements, the conditions to access this funding have not been satisfied and the satisfaction or waiver of these conditions is outside the direct control of the company,” the company said.

RESCUE PLAN TALKS CONTINUE

Thames Water has become a symbol of the failure of Britain’s water sector – blamed for sewage pollution, while its 20 billion pounds of debt have left it teetering on the brink of financial collapse since 2023.

Senior creditors in Thames Water want to write-off debt and invest new equity and have been talking to government and regulators for months to try to agree the terms of this recapitalisation plan.

“We continue to work closely with stakeholders to secure a market-led solution that we believe is in the best interests of our customers and the environment,” CEO Chris Weston said.

Thames Water said its was making progress in its turnaround and it was investing to improve its environmental performance, while its earnings were boosted by a regulated price rise and better cost controls.

During the six months to September 30, sewage spills fell 20%, and it posted underlying core earnings (EBITDA) of 1.2 billion pounds, up 70% on the same period last year.