Thames Water Reports £1.6bn Loss Amid Rising Debt, Pollution Fines

Thames Water, the UK's largest water company, reported a staggering £1.6 billion pre-tax loss for the year ending March 31, marking a sharp decline from a £157 million profit the previous year. The loss was largely driven by a £1.27 billion bad debt provision on intercompany loans, £122 million set aside for Ofwat fines, and other significant costs including financing and restructuring fees. The firm's debt burden swelled to £16.8 billion, intensifying its financial crisis amid rising pollution incidents, which climbed from 350 to 470, resulting in potential fines exceeding £1 billion. CEO Chris Weston emphasized the need for a decade-long turnaround and is working with senior creditors on a recapitalization plan to stabilize the company, which may require resetting regulatory frameworks. Despite the financial turmoil, Thames Water reported an 8% increase in revenue and some operational improvements, such as a 13.2% reduction in water leaks and fewer household complaints. The company also warned of the looming risk of nationalization if it fails to secure necessary support from stakeholders and creditors.