By James A. Loyola
Manila Water Company (MWC) maintained its profitability with a net income of P4.9 billion in the first nine months of the year from P5 billion in the same period of 2018.
In a disclosure to the Philippine Stock Exchange, the firm said earnings were driven by the steady performance of the Manila Concession and supported by Manila Water Asia Pacific (MWAP).
On a consolidated level, Manila Water posted billed volume growth of 4 percent, led by the Manila Concession and international subsidiaries under Manila Water Asia Pacific.
This growth significantly offset the relatively flatter billed volume trajectory in the local subsidiaries under Manila Water Philippine Ventures.
Cost pressures have increased with the current economic environment as well as necessary operational and growth initiatives, with cost of services and operating expenses growing by 21 percent to P5.94 billion.
In the Manila Concession, robust billed volume growth was maintained at 3 percent, with billed connections totaling over 980,000.
Systems losses (Non-revenue Water) improved to 12.3 percent from the same period last year, pointing to the continued thrust towards operating efficiency.
Manila Water has secured approval from Metropolitan Water and Sewerage System (MWSS) for a positive tariff adjustment between P5.94-P6.18 per cubic meter, or nearly 25 percent of the current basic tariff for the Fourth Rate Rebasing Period.
Moreover, MWSS incorporated a possible additional incremental adjustment in 2022, from P0.76 to a P1.04 increase. This is contingent to the development and execution of key water source projects.
“With the Rate Rebasing exercise with MWSS finally reaching resolution, we can now focus on implementing our business plan for the coming years given increasing demand and highly encouraging developments in the Manila Concession. This renewed stability enables us to intensify our drive towards our growth aspirations beyond the East Zone, both domestically and in the region,” said Manila Water President Ferdinand M. Dela Cruz.
Manila Water Philippine Ventures (MWPV) posted 5 percent revenue growth to P2.38 billion, supported by a steady topline in its existing subsidiaries.
Going beyond domestic shores and into ASEAN, MWAP continues to post strong performance, with an 82 percent increase in equity share in net income of associates to P514 million.
The Vietnam operating subsidiaries, namely Thu Duc, Kenh Dong and Saigon Water, exhibited significant revenue and earnings growth.