Jersey Water has reported a rise in profit before tax of 4.4 per cent to £4.3 million for the latest financial year. Turnover was up 2.3 per cent to £15.7 million.
The company, which is 74 per cent owned by the States of Jersey, has today released its preliminary financial results for the year ended 31 December 2016. It said the higher profit before tax was largely down to a 3.78 per cent increase in operating profit to £5 million (2015: £4.8 million).
During the year, the company invested £4.6 million in capital projects – including refurbishment and extension of desalination plant, mains and service renewals, water quality enhancement projects and the metering programme.
Capital expenditure totalled £4.6 million, a £2 million decrease on the prior year amount of £6.6 million.
Work also continued on the £6 million extension of the firm’s desalination plant, which is expected to increase desalinated water output from 6.4Ml/day to 10.8Ml/day with a 36 per cent energy saving.
The desalination plant upgrade accounted for £1.9 million, or 43 per cent, of the year’s capital spend in 2016 and £3.7 million, or 55 per cent, of the prior year’s capital spend.
However, the project contractor has experienced delays resulting from technical problems, although installation is now complete and the plant is capable of producing desalinated water.
Formal handover is subject to completion of testing and optimisation work, and Jersey Water said it is “actively working” with the contractor to ensure that the project is finalised as soon as practicably possible. Completion is scheduled before the end of Q2 2017.
Mains renewals and metering totalled £1.2 million, in line with the company’s focus on reducing leakage.
As reported last year, the presence of a number of pesticides, including the discontinued fungicide oxadixyl, in surface water streams, as well as the ongoing diffuse pollution from nitrates, continued to present a challenge during 2016.
The company said it recognises the need for a strategy to improve raw water quality, and welcomes the ‘water plan for Jersey’ and the ‘rural economy strategy’, both published by the States of Jersey during 2016.
Despite these water quality and supply challenges, the quality of water supplied by Jersey Water in 2016 had an overall compliance rate of 99.99 per cent. Water consumption increased by 3.7 per cent to 7.6 billion litres, which the company attributed to a drier than average summer, and the effect of new customers.
Jersey Water chief executive Helier Smith said: “We are pleased with our financial performance in 2016 and with our water quality results for the year. Both are evidence of the hard work of the team at Jersey Water, who maintained our usual service and quality standards whilst dealing with the issues presented by the poor quality of the water entering our reservoirs.
“The small size of the water catchments in Jersey and the intensity of farming practices do mean that water resources are vulnerable to pollution from nitrates and other substances. We continue to work closely with all stakeholders on a long-term solution but, in the meantime, through the effective management of water resources, we continue to provide water that meets the highest safety and regulatory standards.”
He added: “We remain committed to helping customers to reduce their water consumption and water bills by encouraging them to think about their water usage. Repairs to dripping taps, leaking hot water systems and toilet overflows; the water lost through these small leaks can be as much as a bath full of water per day so saving water really does save money. It also helps protect the environment and maintain our water resources, especially as the springtime is predicted to be dry.”