Manila Water posts 13.5% profit hike

MANILA, Philippines – Ayala-led utility firm Manila Water Cop., the water concessionaire for the eastern zone of Metro Manila, reported a 13.5 percent rise in its first quarter net earnings this year to P622 million on the back of higher revenues.

In a disclosure to the Philippine Stock Exchange (PSE), Manila Water said its revenues increased by 6.8 percent to P2.2 billion.

At end-March this year, the company increased its customer base by 11,000 households to 1.04 million on water sales of 93.7 million cubic meters.

Operating costs were contained, resulting in an improved earnings before interests, taxes, depreciation and amortization (EBITDA), which rose to P1.5 billion.

“We continue to prioritize the expansion of our customer base. In addition, efficiency gains will be a key focus to improve margins. These efforts will be complemented by initiatives to ensure the long-term viability of the business in the East Zone and beyond,” said Rene D. Almendras, president of Manila Water.

With the extension of the concession agreement by 10 years, Manila Water has committed to increase the level of investments to a total amount of P450 billion until 2037 to accelerate the implementation of wastewater projects, expansion of the water network and the development of new water sources.

In April, Manila Water inked an agreement to form a joint venture with the Philippine Tourism Authority (PTA) to manage water and wastewater services for Boracay, one of the company’s premiere tourist destinations. The joint venture will entail an investment of around P1.2 billion over a three year period to help improve the island’s water supply.

“Our concession in Boracay affirms Manila Water’s capability to develop world-class water and wastewater systems for its customers. This is just one of the many thrusts that we are pursuing in order to contribute towards the well-being of our client communities and at the same time generate more value for the company,” Almendras said.

The Boracay project will add to Manila Water’s growing business portfolio outside the concession which includes Tripur, India and Ho Chi Minh, Vietnam.

Manila Water continues to be on the lookout for opportunities in Indonesia and China to further expand its reach.

The company has earmarked a total of P187 billion for its capital expenditure programs until 2022, the end of its concession period. With the extension of the concession, Manila Water would need to spend P163 billion more. – With Iris Gonzales