Mla Water nets P4.29 B in Q3

MANILA, Philippines - Ayala-led Manila Water Co. Inc. reported yesterday a nine percent growth in its net earnings for the first nine months of the year on higher billed volume and lower operating expenses.

In a regulatory filing, the company reported a net income of P4.29 billion for the first three quarters of the year, up from P3.93 billion in the same period last year.

Total revenue from operations rose six percent to P11.54 million from P10.90 billion last year.

Manila Water’s operating expenses fell two percent to P3.25 billion from the previous P3.33 billion.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 11 percent to P8.53 billion from P7.66 billion.

The total billed volume in its concession areas rose seven percent year on year to 454.9 million cubic meters (mcm) from 426.7 mcm on increased service connections in its domestic concession areas. 

Its subsidiary Laguna Water had a 49 percent increase in billed volume to 8.2 mcm from 5.5 mcm on a 62 percent increase in service connections during the first nine months of the year.

The billed volume in its East Zone concession area rose two percent to 326.1 mcm from 321.1 mcm.

Service connections grew by three percent year-on-year.

Boracay Water and Clark Water registered 17 percent and six percent increases, respectively, in billed volume in the first nine months of the year, and increases in service connections by seven percent and three percent, respectively.

Thu Duc Water in Vietnam registered a billed volume of 89.6 mcm, down two percent from 91.1 mcm last year.

Manila Water filed a dispute recently notice with the International Chamber of Commerce challenging the rate reduction xxx by the Metropolitan Waterworks and Sewerage System (MWSS).

The water firm argued the rate reduction would “cut away” important programs for building and maintaining water and wastewater systems in the East Zone.

The MWSS board had approved a 29.47 percent downward adjustment on Manila Water’s 2012 average basic water charge of P24.57 per cubic meter, which should be implemented in five equal tranches of  -5.894 percent per year. Manila Water had proposed a basic rate increase of P5.83 per cubic meter.

The existing water rates would prevail until the appeals panel arrive at a final decision.