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Rand Water posts higher earnings

Rand Water posts higher earnings

Photo by Duane Daws

31st March 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Rand Water Board posted higher earnings for the interim period to December 2013, with profit climbing 28% to R820-million.

The bulk water supply services provider reported a 27% rise in earnings before interest, tax, depreciation and amortisation to R916-million, with the margin widening from 19% to 21% during the six months to December.

Revenue rose to R4.4-billion during the first half of the year – a 16% jump on the revenue achieved during the corresponding period the year before.

A 9.8% tariff increase implemented in July 2013 and a 5.8% increase in volume on the back of urbanisation-driven higher demand resulted in an 86% increase in cash generated from operations to R507-million.

Meanwhile, Rand Water increased capital expenditure for the first half of 2014 by 39% to R1-billion and expected a similar injection during the second half of this year.

Edited by Creamer Media Reporter

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