Financial performance
Financial performance
In the 2023-24 financial year, we recorded year-end profit before tax of $156.9 million. Revenue was $1.569 billion with some of the contributors to this being:
- strong water sales
- significant contributed assets arising from mains extension contributions and infrastructure assets gifted to us from developers
- capital contributions to us for work we perform, due to strong statewide development activities.
Total expenses were $1.412 billion.
Some of the contributors to this were:
- significant operating costs including alliance contracts and framework partner costs
- significant electricity volumetric and network charges to operate our networks
- interest expense and depreciation of infrastructure assets, which makes up more than 41 per cent of total expenses.
As a significant revenue contributor to the Government of South Australia, for the broader benefit of the people of South Australia, an amount of $321.3 million was paid in 2023-24.
This saw $78.9 million of business operating expenditure contributed to other government agencies and/or councils through:
- external fees and charges paid to other government agencies
- provision of services delivered by other government agencies
- operational taxes such as land tax or council rates.
Within interest expense, $94.4 million was paid to the South Australian Financing Authority as guarantee fees and margins. An income tax equivalent of $41.1 million and a dividend of $107.0 million were also paid.
Contributions to government
| 2023-24 actuals $’000 |
External fees and charges | 57,516 |
Contract services provided | 1,127 |
Operational taxes and tax equivalents | 20,214 |
Total contained within operating expenses | 78,857
|
As a percentage of total operating expenses | 10.0% |
Interest expense – guarantee fees* | 89,874 |
South Australia Government Financing Authority margin fees | 4,484 |
Additional interest paid to owner | 94,358
|
Income tax equivalents | 41,087 |
Dividends at 100% of profit after tax** | 106,952 |
Total amounts paid to government | 321,254 |
*Guarantee fees are paid to the South Australian government to remove any competitive advantage we might have due to our ability to borrow under the South Australian government credit rating.
**Dividend was paid based on 100 per cent of the forecast profit after tax (PAT) as at April 2024. The actual year end PAT position was higher. This will be adjusted in the 2024-25 dividend payment.
This year, we spent $702.3 million on capital expenditure, with $24.5 million spent on information technology and $677.8 million on infrastructure and mandated growth (extensions and connections).
Information technology investments continue to focus on improving outcomes for our customers and the business as well as the safety of our people, including:
- improved service channels and customer digital experience
- increased technology security and reliability (including cyber security and remote connectivity via Starlink)
- increased business efficiency and employee experience
- innovative technologies such as smart maintenance, cathodic protection and body cameras for reservoir rangers.
We continue to focus on improvements to our water and wastewater infrastructure assets and water security of the state, and to invest in major infrastructure projects, all of which have a positive impact on our customers and/or the state. In 2023-24 these included:
- Kangaroo Island desalination plant – $58.1 million
- Bolivar Wastewater Treatment Plant capacity growth upgrade – $48.8 million
- Tea Tree Gully Sustainable Sewers – $26.7 million
- Eyre Peninsula Desalination Project – $25.6 million
The following is a summary of external consultants engaged, and the nature and cost of the work undertaken.
Consultant | Amount ($) | Description/purpose |
Less than $10,000 | ||
Nil | ||
Between $10,000 and $50,000 | ||
Red Wagon Workplace Solutions | 31,770 | Advice regarding staff matters and industrial relations issues |
Greater than $50,000 | ||
Farrah Seidel | 69,858 | An independent service provider to investigate employee matters |
