LONDON, Dec 3: Thames Water is working with the government and regulators to secure a potential rescue after its half-year results highlighted ongoing financial instability. Britain’s largest water company has already drawn down £1.43 billion ($1.89 billion) of a £1.5 billion lifeline and will need access to a second tranche early next year, though this is subject to conditions outside the company’s direct control.
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The company has become a symbol of challenges in Britain’s water sector, facing criticism over sewage pollution and managing £20 billion in debt. Since 2023, Thames Water has been on the brink of financial collapse, prompting talks between senior creditors, government officials, and regulators to agree on a recapitalisation plan. The plan may include debt write-offs and new equity investment.
CEO Chris Weston said the company is “working closely with stakeholders to secure a market-led solution that we believe is in the best interests of our customers and the environment.” He emphasized that Thames Water is making progress on its turnaround and investing in environmental improvements.
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During the six months to September 30, the company saw a 20% reduction in sewage spills and posted underlying core earnings (EBITDA) of £1.2 billion, a 70% increase compared to the same period last year. Earnings growth was aided by a regulated price rise and improved cost controls, reflecting efforts to stabilize operations despite long-term financial pressures.
The outcome of the rescue talks will be closely watched, as Thames Water’s financial health is crucial for both customers and environmental performance across the UK.