Manila Water income sinks 24% to P3.2 billion

MANILA, Philippines — Ayala-led Manila Water Co. Inc. registered a 24 percent decline in its nine-month net income to P3.2 billion amid lower contributions from its domestic operations due to the pandemic.

Manila Water said the lower contribution from domestic subsidiaries, coupled with the recognition of additional estimates for various exposures across the group, weighed down on earnings.

Consolidated revenues were relatively flat at P16.1 billion as the higher revenue contributions from the east zone and Laguna Water were offset by lower revenues from other domestic subsidiaries.

Net income for the company’s east zone concession fell to P3.37 billion due to the higher water supply coming from the Cardona water treatment plant and deep wells, which are relatively more expensive in terms of water production.

This is still in line with Manila Water’s expenses following the raw water shortage last year.

Manila Water said the pandemic had a significant impact on customer mix and collection levels. Specifically, billed volume mix shifted five percentage points in favor of the residential segment, as businesses ceased operations and more people were confined to their homes during the imposed community quarantines.

As a result, revenue mix moved eight percentage points toward the residential segment, which in turn caused average tariff to decrease by three percent from the same period last year.