Manila Water posts 7% profit growth

MANILA, Philippines - East Zone water concessionaire Manila Water Co., Inc., has registered a seven prevent rise in net income in the first quarter of the year on higher billed volume.

In an exchange filing, the Ayala-led firm reported net earnings of P1.431 billion in the first three months of the year against P1.333 billion in the same period last year.

Revenues for the period rose five percent to P3.837 billion against P3.637 billion year-on-year. Earnings Before Interest, Taxes, Depreciation, Amortization (EBITDA) rose four percent to P2.823 billion from P2.723 billion last year.

The total billed volume for the company’s water service areas, both domestic and overseas, has risen 17 percent to 160.4 million cubic meters (MCM) in the first three months of the year against P136.6 mcm year-on-year.

The company’s East Zone concession area remains the largest contributor to the aggregate billed volume. Billing in its Thu Duc Water operations in Vietnam, however, has risen significantly by 209 percent to 29.7 million cubic meters from 27.6 MCM last year.

Total service connections across the company’s service areas has also risen. Service connections in the concession area of Laguna Water has risen significantly by 56 percent to 70, 514 in the first quarter of the year against 45, 075 in the same period last year.

Manila Water is actively scouting for areas outside Metro Manila where it can gain water supply rights.

The company is searching for opportunities in locales with a population of half a million, an economically viable population for providing bulk water service.

The company is also amenable to taking on non-revenue water reduction projects in provinces that already have water service providers.

Outside the East Zone concession area, Manila Water operates Boracay Water, Clark Water and Laguna Water. Its Cebu bulk water project is expected to commence operations in June.

Boracay Water and Laguna Water continue to expand service coverage in water and wastewater services.

In Vietnam, it operates Thu Duc Water and Kenh Dong Water.

Manila Water is also expanding its presence in Vietnam through the aquisition last year of a 31.47 percent stake in Vietnam’s Saigon Water Infrastructure Corp. (SII) by its wholly-owned subisidiary Manila Water South Asia Holdings Pte. Ltd.

SII would be a vehicle for developing other water ventures.

The company also continues to pursue expansion opportunities in Myanmar and Indonesia.