Manila Water posts 11% increase in H1 earnings

MANILA, Philippines - East Zone water concessionaire Manila Water Co. Inc. reported an 11-percent increase in its net income for the first semester of the year due to higher billed volume and lower operating expenses.

In its first semester report disclosed to the local bourse late Thursday, the company disclosed that its net income for the period reached P2.9 billion in the first six months of the year against P2.63 billion in the same period last year.

Manila Water’s revenues for the first half of the year rose six percent to P7.63 billion against P7.19 billion year-on-year.

Its operating expenses fell two percent to P2.097 billion from P2.135 billion last year.

Earnings Before Interest Taxes and Depreciation (EBITDA) rose 11 percent to P5.791 billion against P5.131 billion year-on-year.

The company’s total billed volume in the first six months of the year rose two percent to 287 million cubic meters (mcm) compared to 281.4 million cubic meters in the same period last year.

The billed volume in the East Zone concession area rose two percent to 216.5 mcm from 211.5 mcm.

The billed volume of subsidiary Boracay Island Water rose 14 percent to 1.8 mcm from 1.6 mcm last year.

Boracay Water, which services the resort island of Boracay, is targeting to achieve a 100-percent coverage of its concession area by the end of the year.

Clark Water, another subsidiary, registered an eight-percent increase in water billings to 4.7 mcm from 4.4 mcm last year.

Laguna Water’s billed volume in the first six months of the year rose by 41 percent to 4.8 mcm from 3.4 mcm last year.

Laguna Water is currently looking for new water sources as part of its program to expand its coverage in its concession area to 80 percent by 2016.

In April, Laguna Water signed a P1.33- billion omnibus loan and security agreement with the Development Bank of the Philippines (DBP) to enable it to achieve universal coverage in the cities of Biñan and Sta. Rosa towns in Laguna.

Vietnam-based Thu Duc Water, Manila Water, foreign subsidiary, registered a two-percent drop in billed volume in the first semester to 59.1 mcm from 60.5 mcm in the same period last year.

Manila Water’s total water service connections in the first half rose five percent to 968, 647 from 921, 917 in the same period last year.

Service connections in the East Zone rose three percent to 910, 722 from 880, 535 connections last year.

Service connections of Laguna Water rose 47 percent to 50,413 in the first semester of the year from 34, 397 connections in the same period last year.

Boracay Water’s service connections for the period rose eight percent to 5, 530 mcm from 5, 097 mcm in the same period last year.

Clark Water’s service connections in the first semester rose by two percent to 1,932 mcm from 1,888 mcm last year.