Manila Water net income climbs to P3.56 billion in Q1

MANILA, Philippines — Razon-led Manila Water Co. Inc. earned 14 percent more in the first quarter to over P3.5 billion, driven by higher tariff rate and more volume billed in its service area outside the East Zone of Greater Manila.

Manila Water said its attributable net income reached P3.56 billion, about P439 million higher than the P3.12 billion recorded in the first three months of last year.

The water utility firm’s revenues rose by eight percent to P9.54 billion from P8.81 billion, thanks to higher average tariff rate in the East Zone supported by higher billed volume in the non-East Zone area.

The company recorded a 12.5-percent increase in its average tariff in the East Zone, reaching P58.4 per cubic meter in the first quarter from last year’s P51.9 per cubic meter.

Water billed volume in non-East Zone rose by 14 percent year-on-year to 31.4 million cubic meters from 27.5 million cubic meters, according to Manila Water.

Tariff hikes recorded by Manila Water’s subsidiaries such as Clark Water, Boracay Water and Estate Water also contributed to the increase in the firm’s revenues and bottom line.

Manila Water said 76 percent of its revenues came from the sale of water, while 19 percent from environmental and sewer charges and the other revenues were from supervision fees, connection fees and after-the-meter services, among others.

The water utility firms’ total billed water volume in the first quarter declined by eight percent to 306.6 million cubic meters from 334.5 million cubic meters.

In the East Zone alone, total billed volume dropped by two percent to 126.7 million cubic meters from 129.4 million cubic meters.

Total billed water connections in the first three months, however, rose by four percent to 1.38 million from 1.33 million. In the East Zone, connections grew by two percent to 1.1 million from 1.08 million, according to Manila Water.

The water utility firm’s total costs and expenses from January to March rose by two percent to P2.77 billion from P2.72 billion due to higher personnel, overhead and other costs partially offset by the decline in direct and premises costs.