South West Water has reported a small dip in profits for the six months to the end of September.
The utility firm's profit before tax for the half year was down £1.1m to £86.2m due to a price freeze for 2014/15.
Exeter-based parent company Pennon Group said SWW had "maintained broadly stable operating profit despite tariff freeze, due to continued cost efficiency".
Overall, Pennon's pre-tax profits for the six months were down 9.8 per cent – or £10.9m – to £100m.
Waste management subsidiary Viridor saw its profits plunge by £10.6m to £4.7m as the company continues its "transformation from being predominantly a landfill business to becoming a leading recycling and renewable energy provider".
Pennon chairman Ken Harvey said: "South West Water is continuing its strong performance against the 2010-2015 regulatory contract and is well placed to outperform its assumptions.
"The company continues to deliver robust operational performance and efficiencies, and improving standards of customer service. Half year 2014/15 profits reflect the 2014/15 tariff freeze already announced.
"However, operating profits remain broadly stable.
"With South West Water's track record of efficiency and outperformance, the company is well placed to deliver its business plan and will have an opportunity to outperform the assumed returns on equity."
He added: "Financial performance at Viridor has been in line with management expectations."
