Manila Water declares cash dividends

MANILA, Philippines - Manila Water Co. will be issuing cash dividends to its shareholders for the second semester of the year.

In a disclosure to the Philippine Stock Exchange, Manila Water assistant corporate secretary Jhoel Raqueda said the company’s board of directors has declared cash dividends of P0.298 per share on outstanding common shares and P0.0298 per share on outstanding participating preferred shares.

The dividends are payable on Nov. 6 to stockholders of record as of Oct. 9, 2012.

Beginning next month, Manila Water will implement an upward adjustment of P0.08 per cubic meter in its rates.

The adjustment is due to a foreign currency differential adjustment (FCDA) based on the exchange rate of P41.91 to the dollar and Y0.5302.

The FCDA component of the water bill will be adjusted from 3.19 percent to 3.49 percent of the basic charge.

The FCDA is a tariff mechanism formulated to account for foreign exchange losses or gains arising from the payment by Manila Water of concession loans as foreign currency denominated borrowings of the Metropolitan Waterworks and Sewerage System (MWSS) as well as loans for service expansion and improvement of services.

Manila Water said the tariff adjustment has no impact on the projected net income of the company.

The adjustment was approved by the MWSS on Sept. 20, 2012.

Low income households consuming 10 cubic meters a months or less will be exempt from the adjustment.

Manila Water provides water and wastewater services to the following areas: Mandaluyong, Pasig, San Juan, Marikina, Pateros, Taguig, Makati, southeastern part of Quezon City, San Andres and Sta. Ana in Manila, as well as several towns of Rizal province which include San Mateo, Rodriguez, Antipolo, Cainta, Angono, Baras, Binangonan and Jala-jala.