Manila Water profit down 15% to P1.1 billion

MANILA, Philippines — Manila Water Co. Inc. reported a 15 percent decline in its net income in the first quarter  as it saw lower total billed volumes.

In a disclosure to the Philippine Stock Exchange, Manila Water said earnings reached  P1.097 billion, lower than the P1.297 billion in the same period last year.

Manila Water said total billed volume dropped by two percent to 309.6 million cubic meters (mcm).

Total billed volume in the company’s east zone concession remained flat during the period to 117.6 mcm from last year’s 117.7 mcm.

Manila Water Asia Pacific, which houses Manila Water’s international investments in the region, registered a six percent decline in total billed volume to 164.3 mcm from 172.3 mcm  a year ago.

In contrast, Manila Water, Philippine Ventures Inc. (MWPV), which houses the company’s domestic units outside of the east zone, saw a six percent increase in total billed volume to 27.7 mcm.

Manila Water reported a five percent increase in consolidated revenues to P5.078 billion.

Meanwhile, Manila Water announced in a separate disclosure that MWPV acquired 107.6 million shares of Metropac Water Investments Corp. (MWIC) in Manila Water Consortium Inc. (MWCon).

This was done through a tripartite share purchase agreement for the sale of MWIC’s 128.7 million shares in MWCon, where Vicsal Development Corp.also acquired 21.098 million shares of MWIC in MWCon.

As a result of the acquisition, MWPV’s stake in MWCon increased to 84 percent, while Vicsal will own 16 percent.

Prior to the transaction, MWPV held a 51 percent stake in MWCon while Viscal and MWIC held a 10 and 36 percent stake, respectively.

MWCon is the partner of the province of Cebu in the implementation of the 2012 joint investment agreement for the development and delivery of bulk water supply to the Cebu Province, which is being carried out by their joint venture company, Cebu Manila Water Development.

“The transaction is in line with MWC’s strategic direction to maximize the potential of existing business and take on opportunities for growth and expansion in the province of Cebu and eventually in the Visayas and Mindanao regions,”Manila Water said.

It said the acquisition of MWCon shares allows Manila Water to optimize project returns with its efficient execution and operation of the project, and sound regulatory and stakeholder management.

“Operationally, MWIC will no longer have board seats in MWCon. The transaction will have no effect on project execution and operation of the project assets. Ultimately, the project retains its projected benefits to be provided to the customers of the Metro Cebu Water District,”Manila Water said.