MANILA, Philippines — Razon-led Manila Water Company Inc. saw its first quarter net income grow by more than a third compared to last year on the back of higher tariff coupled by increase in water usage in its covered areas.
In a filing with the Philippine Stock Exchange yesterday, Manila Water reported that its net income in the three months ending March reached P3.124 billion, about 37 percent higher than last year’s P2.286 billion.
Total revenues rose by almost a quarter to P8.818 billion from P7.383 billion. Bulk or about 74 percent of its revenues during the quarter came from the sale of water while 19 percent were from environmental and sewer charges.
Other sources of the company’s revenues were supervision fees, connection fees, after-the-meter services and service income from bulk water arrangements, among others.
Manila Water said the increase in its revenues was “primarily” driven by the 23 percent hike in average tariff and four percent increase in billed volume in the East Zone concession.
“This growth was further supported by the 15 percent increase in Non-East Zone revenues due primarily to the tariff increases in several business units and higher sewer revenues mainly from Laguna Water and Estate Water.”
The firm’s total billed volume in the first quarter reached 320 million cubic meters (mcm), up by four percent from the same quarter last year’s 316.3 mcm.
Meanwhile, its total billed water service connections grew by two percent year-on-year to 1.328 million from 1.303 million.
The east zone water concessionaire recorded 1.084 million connections, up by one percent, while that of Manila Water Philippine Ventures increased by four percent to 243,713 water service connections.
Manila Water’s consolidated cost of services and expenses decreased by two percent to P2.719 billion from P2.778 billion due to lower overhead and direct costs.
The company 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.