Manila Water net income up 24% to P3.99 B in 2010

MANILA, Philippines - Ayala-led Manila Water Co. Inc. reported that its unaudited net income last year rose 24 percent to P3.99 billion on the back of the growth in billed water volume and a one-time downward adjustment on its depreciation expense.

The East Zone concessionaire’s billed water volume for 2010 grew 3.5 percent year-on-year to 409.8 million cubic meter (mcm). The East Zone encompasses parts of Manila, San Juan, Taguig, Pateros, Marikina, Pasig, Mandaluyong, Makati, most of Quezon City, and Antipolo, Taytay, Jala-Jala, Baras, Angono, San Mateo and Rodriguez in Rizal province.

Non-revenue water or NRW has also been further reduced to 11 percent from 15.8 percent, the company noted.

Last year, Manila Water said it invested P9.6 billion to improve the reliability and expand the coverage of its water and wastewater networks.

Manila Water said it is now able to provide more than 99 percent of its customers with 24-hour water service at an average pressure of 18 psi.

The water utility firm reported a net operating revenue of P11.047 billion in 2010, a 15 percent increase from P9.533 billion in 2009. It also reported that its revenues from outside the East Zone totaled P290 million.

Manila Water also has concessions in Laguna and Boracay. It also has an ongoing management contract in Ho Chi Minh, Vietnam.

However, Manila Water’s operating costs and expenses also increased to P3.412 billion in 2010, compared with P2.764 billion in 2009.

To support its capital expenditures, Manila Water said that it secured in the second half of 2010 a $150-million loan facility from four major international banks and guaranteed by the Nippon Export and Investment Insurance.

The company said it has allotted P10 billion in annual investment over the next two years for the development of new water sources, foremost of which is the tapping of Laguna de Bay as an additional source of raw water supply; network reliability improvements, as well as the building of several sewage treatment plant to further improve sanitation coverage in the East Zone.