MANILA, Philippines - Manila Water Company Inc. unit Laguna Water reported a 165 percent increase in net income last year on the back of higher billed volume.
In a statement, Manila Water said Laguna Water’s net income reached P56.5 million in 2012 compared with P21.3 million in 2011.
Revenues jumped by 97 percent year-on-year due to a 65 percent growth in billed volume.
Service connections grew last year because of the addition of new commercial accounts and expansion of the company’s base in previously unserved areas.
“Our venture in connecting malls, subdivisions and open communities that were previously reliant on unreliable water sources made the difference,†said Melvin Tan, Laguna Water chief operating officer and general manager.
“We are fortunate that our takeover of key accounts was warmly accepted and was seen as an opportunity to upgrade their water systems,†he added.
Laguna Water will develop new water sources beginning this year as part of its program to expand its coverage in its concession area to 80 percent by 2016.
The company currently covers 30 percent of its concession area, equivalent to 45,000 individual connections for a population 900,000.
By 2020, Laguna Water aims to achieve a 100 percent coverage in its service area which is equivalent to roughly 112,000 connections.
Laguna Water was formed in 2009 in partnership with the Provincial Government of Laguna to provide sustainable and reliable water supply to the province.
The company supplies the towns of Cabuyao, Santa Rosa and Binan with 35 million liters of water per day coming mostly from deep wells and other spring sources in the province.
The company will spend P3.7 billion in four years to carry out the expansion plan, financing for which would come from a combination of loans and internal funds.
Tan said the company has a pending application with the National Water Resources Board (NWRB) for higher water rights volume from the Matang Tubig Spring in the province from which it obtains five million liters of water per day.
He said the company is asking the NWRB to allow it to extract up to 40 million liters of water per day from the spring water source.