Manila Water profit jumps 39% to P10 billion

MANILA, Philippines —  Razon-led Manila Water Co. Inc. reported a 39 percent year-on-year jump in its net income in the nine months ending September, driven by double-digit increase in its revenues on the back of higher tariff and billed volume.

The East Zone concessionaire of the Metropolitan Waterworks and Sewerage System said its net income reached P10.103 billion from January to September, P2.84 billion higher than last year’s P7.262 billion.

The water utility firm posted a 19 percent increase in its revenues that reached P27.547 billion from a year ago’s P23.144 billion.

The increase in revenues was attributed to a 20 percent increase in the firm’s average tariff and higher billed volume growth within the firm’s East Zone jurisdiction.

Furthermore, the 23-percent hike in revenues of its non-East Zone operations due to higher billed volume and tariff increases also contributed to the firm’s overall revenues.

The company noted that bulk or about 76 percent of its total revenues came from the sale of water while 19 percent came from environmental and sewer charges.

The remaining revenues included supervision fees, connection fees, after-the-meter services, service income from bulk water arrangements and finance income from contract assets, among others.

Meanwhile, the company’s total costs and expenses rose by four percent on an annual basis to P8.75 billion due to higher personnel costs and premises costs.

Earnings before interest, income tax, depreciation and amortization expanded by 26 percent year-on-year to P19.15 billion from P15.247 billion.

Manila Water saw its total attributable billed volume across its business units increase by five percent year-on-year to 1,019 million cubic meters (mcm).

In the East Zone, the company’s total billed water volume inched up by two percent to 396.1 mcm from last year’s 389 mcm.

Meanwhile, total billed connections of the water utility firm grew by six percent to 1.392 million from last year’s 1.317 million.

Meanwhile, the company’s capital expenditures as of end-September reached P16.7 billion with the East Zone concession accounting for majority of it or about P15.1 billion.

“When we set out on our path to recovery and growth three years ago, we knew fully well that the road ahead would not be easy,” Manila Water president and CEO Jocot de Dios said.

“We understood that sacrifices would need to be made at the onset, so that we can establish a robust structure and adopt practices that will result in sustainable efficiencies in our operations, better, more reliable service to our customers and a more disciplined view of how we pursue