Mla Water logs 6% income growth

MANILA, Philippines - Ayala-led Manila Water Company Inc. has registered a six percent growth in net income in the first nine months of the year on increased billed volume particularly from its Vietnam and Laguna concession areas.

The company posted a net income of P4.55 billion in the first three quarters of the year, up from net earnings of P4.29 billion recorded in the same period last year.

The company’s revenue rose 27 percent to P12.21 billion from P11.54 billion in the previous year.

It’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose three percent to P8.76 billion from P8.53 billion in the previous year.

Billed volumes rose across all its units with the total billed volume rising 14 percent to 503.8 million cubic meters (mcm) from 440.3 mcm last year. This includes the service areas run by its local subsidiaries Boracay Island Water, Clark Water and Laguna Water and its Vietnam units Thu Duc Water and Kenh Dong Water.

The billed volume for Laguna Water and Kenh Dong Water grew particularly fast in the first nine months of the year at rates of 183 percent and 523 percent respectively.

The number of water service connections in its main concession area, the Metro Manila East Zone rose two percent to 943, 624 connections from 921, 898 connections last year.

The number of service connections of Laguna Water rose by a steep 47 percent, while those of Boracay Water by eight percent, and those of Clark Water by two percent.

The company derives most of its income from its Metro Manila East Zone concession area that covers parts of Quezon City and Makati, the southeastern parts of Manila, Taguig, Pateros, Marikina, Pasig, San Juan, Mandaluyong, and Rizal province.

Manila Water president and CEO Gerardo Ablaza Jr.  earlier said the company is actively scouting for areas outside of Metro Manila where it could gain water supply rights.

The company is searching for opportunities in locales with a population of half a million, an economically viable population for providing bulk water service.

The company is also amenable to taking on non-revenue water reduction projects in provinces that already have water service providers.

Boracay Water and Laguna Water also continue to expand service coverage in water and wastewater services.

In Vietnam, it operates Thu Duc Water and Kenh Dong Water and is expanding its presence in Vietnam through the aquisition last year of a 31.47 percent stake in Vietnam’s Saigon Water Infrastructure Corporation (SII) by its wholly-owned subisidiary Manila Water South Asia Holdings Pte. Ltd. SII, which would be a vehicle for developing other water ventures.

The company also continues to pursue expansion opportunities in Myanmar and Indonesia.