Manila Water eyes new markets abroad

MANILA, Philippines — Razon-led Manila Water Co. Inc. is looking at opportunities to enter new overseas markets to further expand its presence outside the Philippines.

Manila Water president and CEO Jocot de Dios told The STAR that among the markets the company is considering for possible expansion are Australia, Brazil and Mexico.

“We look at regions. Southeast Asia. We look at South America. Brazil is one, but I think Brazil is very expensive. Mexico, we’ll have to see once the politics settles. In Asia Pacific, Australia is okay, we’ll take a look,” De Dios said.

“So we have that exercise but none at a very serious level at present,” he said.

Manila Water currently has presence in Vietnam, Thailand, Indonesia and the Kingdom of Saudi Arabia through its subsidiaries and associates.

Its operations abroad span bulk water supply, distribution and wastewater.

“We have what we feel is a very deliberate and purposeful growth strategy. We’re not going to go in any country just so we can say we’re in that country,” De Dios said.

“The idea here is to look for opportunities that add value, that are value creative to Manila Water enterprise. It’s not as easy as you think because margins across the world for water are not as robust as we sort of enjoy here in the Philippines. And we have to contend with different challenges and headwinds,” he said.

Asked if the company is also considering at unloading its stake in some of its various operations abroad, De Dios said that “everything is on the table.”

“We’re not saying we’re looking to unload. What we’re saying is we’re paying attention to the portfolio and how we can maximize the portfolio,” he said.

“Like for example Bulacan. It made sense for us. We made a bit of money,” he said.

Manila Water earlier divested its stake in two Bulacan joint venture corporations for P1 billion to a subsidiary of San Miguel Corp.

Manila Water currently serves the East Zone, covering parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, Quezon City, portions of Manila as well as several towns in Rizal.

Meanwhile, De Dios said sees the upcoming initial public offering of Maynilad Water Services Inc. as a welcome development.

“If the valuation is higher than ours, hopefully we will benefit from that. I guess we’re twins of the hip. At the end of the day, I think both will emerge winners in terms of the right to proper valuation and investor sentiment,” De Dios said.

“We welcome it because it gives more spotlight to the sector. It’s a good thing. I can’t  second guess how the stock would do but hopefully if it performs so well then we can ride along,” he said.

Maynilad, the concessionaire of the government in providing water services in the West Zone of Metro Manila, is looking to push through with its IPO next year.