Manila Water optimistic on growth prospects

MANILA, Philippines - Manila Water Co. Inc is confident of its financial growth this quarter despite its net income dipping in the first three months of the year, driven by higher billed volume and as well as opportunities overseas.

In a recent interview, Manila Water president and chief executive officer Ferdinand dela Cruz told reporters the company registered healthy billed water volume in of April.

Manila Water posted a two percent drop in its net income in the first quarter of the year to P1.45 billion from P1.48 billion in the same period last year.

“The slight dip in net income is really driven by the East Zone compared to last year,” Dela Cruz said.

Manila Water has the exclusive right to provide water and sewerage services to the East Zone of the franchise area of the Metropolitan Waterworks and Sewerage System (MWSS). This caters to 23 cities and municipalities that includes Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila as well as 14 towns of Rizal.

Billed water in Metro Manila’s East Zone grew only one percent to 115.9 mcm from 115.1 mcm in the first quarter of the year.

Dela Cruz also noted of the change in temperature pattern, which also affects the usage of water.

“The first quarter is cooler than the first quarter of last year so summer is getting delayed,” Dela Cruz said.

He noted that billed volume for the East Zone in April has already increased 3.9 percent compared to last year’s figures.

Moreover, the company official hinted of possible business opportunities overseas, particularly in countries such as Vietnam and Indonesia.

The company earlier announced its Singapore-based wholly-owned subsidiary Manila Water South Asia Holdings Pte. Ltd. (MWSAH) has hiked its stake in Saigon Water Infrastructure Corp. (Sll) in Vietnam to 37.99 percent from 31 percent.

Dela Cruz noted that the company already has two bulk water businesses in Vietnam. He added by the third quarter of 2017, Manila Water will be supplying 50 percent of bulk water in Ho Chi Min.

“There are opportunities in Vietnam, we want to see if there are also opportunities in Indonesia given that the regulatory environment is unpredictable,” Dela Cruz said

Apart from the two countries, Dela Cruz also said the company has done a demo pilot in Myanmar.

“We were able to reduce non-revenue water from 59 to 53 so we are talking to them although we understand na medyo mas mabagal dun,” Dela Cruz said.

“(We’re) talking how we could expand further so the opportunities are clear so its more of how fast they open up,” he said.