Manila Water reports 5% income growth in 2013

MANILA, Philippines - Ayala led Manila Water Co., Inc. registered a five percent increase in net income in 2013 on higher revenues and billed water volume.

In a regulatory filing, the company announced that its net income for the period reached P5.75 billion, up from P5.49 billion in the same period last year.

Revenues for the period rose six percent to P15.28 billion from P14.45 billion in 2012.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in 2013 rose nine percent to P11.65 billion in 2013 from P10.64 billion in 2012.

Manila Water’s total billed volume during the period increased five percent to 599.4 million cubic meters (mcm) in 2013 from P569.9 mcm in 2012.

Subsidiary Laguna Water registered a 41 percent increase in billed volume to 11.4 mcm in 2013 from the previous 8.1 mcm after water service connections in the concession area rose by 55 percent last year.

The billed volume of Boracay Island Water rose 15 percent to 3.6 mcm from 3.1 mcm in 2012, with the number of service connections growing by seven percent in 2013.

The billed volume of Clark Water rose 10 percent to 9.8 mcm from nine mcm in 2012 as the number of service connections increase three percent.

Thu Duc Water in Vietnam registered a billed volume of 120.4 mcm, down by two percent from 122.4 mcm in 2012.

Kenh Dong Water registered a billed volume of 20.6 mcm in 2013.

Billed volume in the more developed Metro Manila East Zone concession area grew one percent to 433.6 mcm from 427.3 mcm in 2012 as the number of service connections grew by three percent.

Manila Water is currently looking at several expansion opportunities outside of Metro Manila as well as in neighboring Southeast Asian countries Indonesia and Vietnam.

In the Philippines, the company is looking at expansion opportunities in locales with a population concentration of at least half a million which would provide the company the critical mass for efficient water service.

The company is currently strengthening it’s foothold in Vietnam through the acquisition of a 31.47 percent stake in Vietnam’s Saigon Water Infrastructure Corporation (SII).

Manila Water first gained traction in Vietnam when it acquired a 49 percent stake in Thu Duc WaterBoo in December 2011.

In 2012, it acquired 47.35 percent of Kenh Dong Water Supply Joint Stock Co.

After a failed first attempt at establishing a foothold in Indonesia, the company, through a consortium with a local Indonesian firm is set to bid for a public-private partnership bulk water supply project in Bandar, Lamping Indonesia.

After its bid to acquire half of Indonesian water concessionaire PT PAM Lyonnaise Jaya (Palyja) last year did not push though, the company is still pursuing other business opportunities in Indonesia.