MANILA, Philippines - Listed water service provider Calapan Ventures, Inc., registered a 36 percent drop in net income in 2013 on higher operating expenses.
In a financial report submitted to the local bourse, the water service provider of Calapan City in Oriental Mindoro reported a net income of P21.8 million ending 2013 against net earnings of P34.49 million in 2012.
Revenues rose to P165.76 million from P149. 74 million in 2012 as the number of water service connections rose to 13, 276 from the previous 12, 113 service connections.
The company also implemented a 20 percent water rate hike in its concession area in the last quarter of 2013.
The cost of sales and services, however, also rose to P86.56 million in 2013 from P75.15 million in 2014.
“Cost of sales and services have been increasing primarily due to accrual of lease fee, repairs and maintenance of wells, depreciation (from capital investments made during the year), and power costs (due to higher rates and additional boosters) of Calapan Water,†the company said.
The company’s operating expenses also rose to P44.2 million in 2012 from P36.9 million in 2012 on higher professional and management fees.
Calapan Ventures is the holding company of Calapan Waterworks Corporation and Tabuk Water Corporation.
Calapan Water is the water service provider of Calapan City in Oriental Mindoro, supplying water for domestic municipal, agricultural, industrial, commercial and recreational purposes.
Tabuk Water is the water utilities provider of Tabuk City in the province of Kalinga.