The company said the past year represented its strongest operational performance since it began operating as a non-shareholder company in 2001.
Welsh Water parent company Glas Cymru has no private shareholders, meaning the underlying profit can be “reinvested for the benefit of customers”, the company said.
In addition, Welsh Water will bring down customer bills by 5 per cent in real terms over the next price control period 2015-2020 while it will invest more than £2.5 billion, according to draft determinations published by Ofwat two weeks ago.
The company reported operating costs of £296 million which were only slightly lower than the previous year’s £298 million, with the increase in profit largely attributed to improved efficiency, a spokesman for the company said.
The company carried out capital investment of £354 million, up from £338 million the year before, including the completion of its £9 million Coed Dolwyd service reservoir which is now fully operational.
A further £344 million will be invested over the next 12 months, the company said.
In addition to a strong financial performance the company said it maintained high levels of service in the face of extreme weather conditions over the past year which included prolonged hot periods and the wettest winter in nearly 250 years.
“Despite the considerable challenges of the past 12 months, including extreme weather conditions, we are pleased that we have delivered our strongest overall performance yet since being set-up as a non-shareholder company,” said Welsh Water’s chief executive Chris Jones.
Glas Cymru chairman Bob Ayling added: “With no private shareholders, Glas Cymru is a unique way to own a water company, where all gains go to customers. We have shown with the ownership structure that we can perform at least as well or better than our peers.”