Manila Water net profit up 61 percent to P7.26 billion

In 9 months

MANILA, Philippines — Razon-led Manila Water Company Inc. registered a 61-percent jump in its nine-month net profit on the back of higher tariff coupled by an increase in water usage in its covered areas.

In a filing with the Philippine Stock Exchange yesterday, Manila Water said its net income reached P7.26 billion in the nine months ending September versus P4.52 billion in the same period last year.

Total revenues went up by 39 percent to P23.14 million from P16.65 million. Of the total revenues, 73 percent was derived from the sale of water and 19 percent came from environmental and sewer charges.

The balance was sourced from supervision fees, connection fees, after-the-meter services, service income from bulk water arrangements, and finance income from contract assets.

Manila Water attributed the higher revenues to the 37-percent increase in average tariff, four percent growth in billed volume, and higher cross border charges in the East Zone concession.

The company further said the growth was also supported by the 29-percent increase in non-east zone revenues due to tariff increases in several business units and one percent increase in billed volume.

The integrated used water and pipelaying projects revenues of Manila Water Infratech Solutions (MWIS), as well as higher sewer revenues mainly from Laguna Water and Estate Water also bumped up total revenues, Manila Water said.

Total billed volume reached 96 million cubic meters (mcm), up two percent from 948.1 million in the same period last year.

In terms of total billed connections, Manila Water reported a two-percent rise to 1.317 million water service connections from 1.285 million WSCs.

The east zone concession reached 1.077 million connections, up two percent, while that of Manila Water Philippine Ventures increased by five percent to 239,844 WSCs.

Manila Water’s consolidated cost of services and expenses increased by 12 percent to P8.39 billion from P7.5 billion due to higher costs in all categories led by overhead costs, such as taxes and licenses, power costs, CPI adjustment and higher management and professional fees.

Manila Water serves the east zone of the Greater Manila Area, covering parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila, as well as several towns in Rizal.

It also operates outside the east zone through subsidiary MWPV, with presence in Laguna; Boracay; Cebu; Davao; Clark, Pampanga; Ilagan, Isabela; Tagum, Davao del Norte.

Abroad, Manila Water is present in Vietnam, Thailand, Indonesia and Saudi Arabia.