Photo by: Duane Daws
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.