Annual reports are valuable sources of information that could overwhelm even the most seasoned observers. To make sure there is a level of consistency in these reviews, this post and any subsequent reviews will focus on governance, capital expenditure, and financial performance only. This choice is partly informed by the fact that all Victorian water utilities have disclosure obligations in these areas under the Department of Treasury and Finance Financial Reporting Directions. So here are a few our favourite highlights from Melbourne Water’s 2023-24 Annual Report:
Governance
– There were a number of changes in the composition of the Board of Directors in 2023-24 financial period: Greg Wilson replaced John Thwaites as chair of the Board of Directors commencing his term on 1 October 2023.
– Other new directors commencing their terms on the same date included Monique Conheady, Binda Gokhale, Freya Marsden, and Cameron Myrtle. They replace outgoing board members Kathleen Bailey-Lord, Russell Anderson, and Robyn McLeod
– Board of Directors grew by net 1 person in the last financial year making a total of 9 board members. This represents the maximum number of board members allowed under Section 95 of the Water Act 1989.
– The board members in 2024 were set to receive a total remuneration of $1.144 million with the managing director, Dr Nerina Di Lorenzo, receiving the bulk of that amount.
– During this financial year, Dr Nerina Di Lorenzo appears to have enjoyed a pay rise, moving from a $570,000-$579,999 income band to $610,000-$619,999 income band. She commenced her role at Melbourne Water on 01 June 2022 on a 5 year term.
Capital Expenditure
– Melbourne Water spent $870.3 million during this financial year on capital projects delivery.
– Melbourne Water has invested, allocated or committed to deliver $231.1 million worth of investment in securing water production, $161 million in renewal of key water transfer pipeline, $397.4 million in improving its wastewater treatment plants, $200 million in duplicating Hobsons Bay Main Sewer pipeline, $1.037 billion in upgrades to Western Treatment Plant, 24.5 million to renewing drainage and flood protection assets, $136.1 million to build new drainage and stormwater assets, $33.4 million to repair and protect waterways, $6.4 million in improving stormwater quality, and $26.5 million to improve waterway conditions.
– To deliver these projects, Melbourne Water has committed to spend $992.146 million on capital infrastructure over the next 5 years. This, however, is most likely expenditure associated with upgrades to Western Treatment Plant.
Financial performance
– Melbourne Water had a total revenue of $2.04 billion and a net profit of $149.7 million after tax.
– For every $1 of revenue, Melbourne Water invested 43 cents on capital projects, paid 8 cents in employee benefits, and paid another 16 cents in taxes, dividends and fees to state and federal government
– Of the total expenses of $1.89 billion, Melbourne Water spent $635.23 million (34%) of it on expenses related to the Victorian Desalination Plant while there were no orders from the plant in this Financial Year and no plans for an order in the next Financial Year.
– In 2023-24, Melbourne Water employed 1,324.34 full-time equivalent (FTE) people compared to 1,204.36 FTE in 2022-23. This is an increase of approximately 9.9% from the previous period. This means that Melbourne Water, with a net profit before tax of $254,806,000, generated $19,240,225 of profit/100 FTE.
To find out more about the work Melbourne Water is doing, you can study the Annual Report on your own which you will find below:
Melbourne Water Annual Report 2023-24
QANAT 
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