Manila Water income drops 27% to P1.2 B in Q1

MANILA, Philippines — Ayala-led Manila Water Co. Inc. saw its net income fall  27 percent to P1.23 billion amid higher costs and expenses.

In a regulatory filing, the water company attributed the lower bottom line to the impact of the water supply shortage.

Revenues rose eight percent to P5.1 billion amid higher tariff and improved topline growth of its non-Manila concession businesses.

“The growth was partially offset by the voluntary, one-time bill waiver program to help alleviate the inconvenience of all customers and to those severely affected by the water shortage in the Manila concession,” Manila Water said.

The firm’s operating expenses also surged 39 percent to P2.5 billion, a major factor of which was the financial penalty imposed by the Metropolitan Waterworks and Sewerage System (MWSS).

Last month, the MWSS Board fined the east zone concessionaire P534.05 million for violating a provision of the concession agreement which requires 24/7 water supply to its consumers.

Manila Water was also directed to pay another P600 million to be used for the development of new water supply source.

The company continues to make progress on its service recovery efforts after achieving 98 percent water availability of at least eight hours at seven per square inch or at ground floor level.

Its Cardona water treatment plant has been producing 50 million liters per day and deep wells have augmented supply with production of 30 MLD. Cross-border flows are at 16 MLD.

Total billed volume increased nine percent to 306 million cubic meters across all units driven by the strong top-line of the Manila concession and expansion of its domestic operating subsidiaries.

Other domestic subsidiaries, including Clark Water, Laguna Water and Boracay Water, registered lower earnings for the period due to a slowdown in demand and higher operating costs.

Manila Water Asia Pacific, which houses Manila Water’s international investments in the region, more than doubled its earnings to P135 million.

This following the full recognition of the acquisition of East Water in Thailand, coupled with additional income from MWAP’s industrial park water supply operations at PT Sarana Tirta Ungaran in Indonesia.

The operating subsidiaries in Vietnam, namely Thu Duc Water and Kenh Dong Water, registered lower income contributions due to lower demand.