Financial performance
Financial performance
Financial performance summary
In the 2022-23 financial year, we recorded year-end profit before tax of $70.8 million. Revenue was $1.425 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 $1.355 billion. Some of the contributors to this were:
- significant operating costs including Alliance contracts and framework partner costs
- additional costs associated with providing services to approximately 17,000 new customers per annum (1.2 per cent growth)
- significant electricity volumetric and network charges to facilitate our networks
- increases in chemical, transport and construction costs as a result of various world economic impacts
- interest expense and depreciation of infrastructure assets make up more than 45 per cent of the total expenses
Contributions to government
As a significant revenue contributor to the Government of South Australia, for the broader benefit of the people of South Australia, an amount of $237.1 million was paid in 2022-23.
This saw $74.3 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, $94.2 million was paid to the South Australian Financing Authority as guarantee fees and margins. An income tax equivalent of $18.8 million and a dividend of $49.8 million were also paid.
Capital expenditure
This year, we spent $562.4 million on capital expenditure, with $28.5 million spent on information technology and $533.8 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)
- increased business efficiency and employee experience
- innovative technologies such as smart maintenance, underwater robotics and virtual reality.
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 2022-23 these included:
- Kangaroo Island Desalination Plant $49.8 million
- Tea Tree Gully Sustainable Sewers $29.7 million
- Eyre Peninsula desalination augmentation $12.0 million
- Bolivar Wastewater Treatment Plant capacity growth upgrade $10.0 million
- Mount Bold Dam safety upgrade $7.4 million
- Zero Cost Energy Future infrastructure $3.7 million
Consultants
The following is a summary of external consultants engaged, and the nature and cost of the work undertaken.
Consultants | Amount $ | Description/purpose |
Less than $10,000 |
| |
Isle Utilities Pty Ltd | 10,000.00 | Sewer overflow benchmarking |
Between $10,000 and $50,000 |
| |
Red Wagon Workforce Solutions | 16,000.00 | Advice regarding staff matters and industrial relations issues |
| Farrah Seide | 32,000.00 | An independent, external party to investigate a bullying and harassment complaint |
| KPMG | 42,097.00 | Supporting preparation of our Regulatory Business Plan for the 2024-28 regulatory period |
Greater than $50,000 |
| |
PricewaterhouseCoopers | 113,938.00 | Water engineering technologies operating and commercial model review Professional tax services in preparation of a reasonably arguable position paper on the income tax treatment of contributed assets |
