Corporate News

Manila Water income up 3% in 1st semester

Posted on August 10, 2017

MANILA WATER Co., Inc. reported on Wednesday a 3% increase in first half net income to P3.22 billion, as revenues were mostly driven by its non-Manila concession businesses.

Revenues in the first semester hit P9.12 billion, up 4% from P8.77 billion during the same period a year ago.

First half profit last year reached P3.14 billion for Metro Manila’s West Zone water concessionaire. The company has yet to release its quarterly financial data.

In its disclosure to the stock exchange, Manila Water said its equity share in the net income of associates reached P183 million, down 2% from P187 million last year. This year, however, the company posted other income amounting to P3 million, as against a P5-million loss last year.

The company said growth during the period was fueled by a 3% increase in consolidated billed volume to 366.9 million cubic meters (mcm) from 355.7 mcm.

For the Manila concession, billed volume inched up by 1% to 242.2 mcm, which the company said translated in a 3% rise in net income to P2.9 billion.

Next to Metro Manila, the company’s biggest concession area is served by Thu Duc Water B.O.O Corp. in Vietnam, which recorded 55 mcm in billed volume during the period, up 2% from 53.9 mcm a year ago.

Kenh Dong Water saw a 2% drop in billed volume to 28.4 mcm, while Laguna Water increased its billed volume by 19% to 22.7 mcm.

Estate Water, a division under Manila Water Philippine Ventures, Inc. (MWPV), posted a billed volume growth of 360% to 2.3 mcm from 0.5 mcm in the same period last year.

“Estate Water’s revenues rose to P312 million in the first half of 2017 due to availability charges, income from different contracts, billed volume of customers through water and sewer revenues that resulted to 98% increase from the same period of last year,” the company said.

In terms of billed connections, the Manila concession remained the dominant area with 945,971, up 3% from 915,942 a year ago. This was followed by LagunaAAA Water Corp., which recorded 97,821, higher by 9% from 90,115 in the same period last year.

During the six-month period, Manila Water said consolidated capital expenditure also rose by 48% to P5 billion, “as groundwork for future growth is laid.”

Capital expenditure for the Manila concession hit P3.5 billion in the first half, up 68% from P2.09 billion in the same period last year, the company said.

Of the total spending, 94% was spent to wastewater projects, network reliability and water supply projects. Concession fees paid to Metropolitan Waterworks and Sewerage System accounted for the remaining 6%, it added.

On Wednesday, shares in Manila Water slipped 1.26% to P31.35 each. -- Victor V. Saulon