EconomyForex

Manila Water earnings up 6% at end-September

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MANILA Water Co., Inc. reported a 6% year-on-year increase in its net income to P3.39 billion for the first nine months of the year on the back of higher contribution from its international affiliates and some domestic units.

The listed water provider said in a disclosure on Thursday that total revenues for the January to September period dropped by 5% to P15.28 billion compared to P16.07 billion last year.

“On a group level, the revenues declined due to lower billed volume in the east zone concession and in several domestic subsidiaries, with the continuing impact of the coronavirus disease 2019 (COVID-19) restrictions be-ing felt across the company’s customer base,” Manila Water said.

“This decline in revenues was partially offset by the strong performance from the international affiliates, with equity share in net income of associates growing by more than four times versus last year to P486 million,” the com-pany added.

Manila Water’s costs and expenses for the nine-month period stood at nearly P6.2 billion, 7% higher compared to a year ago, due to an increase in business and operating activities, which were suspended during the enhanced community quarantine last year.

“This increase was partially offset by lower power and chemical costs in line with lower production during the period, as well as the 40% decline in provision for income tax with the adoption of Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law,” the listed water firm said.

For its east zone water concession, Manila Water said it recorded 4% decline in billed volume in the period due to lower consumption in the commercial and industrial segments amid COVID-19 mobility re-strictions.

The water firm added that its east zone concession executed nearly P7-billion worth of projects for the period, which are mainly for wastewater expansion, network reliability, and water supply under its service improvement plan.

Meanwhile, Manila Water said the growth of Manila Water Asia Pacific (MWAP) and Manila Water Philippine Ventures (MWPV) offset the decline in its east zone concession.

“Specifically, growth in MWAP came by way of a higher equity share in the net income of associates, notably from East Water (Thailand), Thu Duc Water (Vietnam), and Kenh Dong Water (Vietnam). This was coupled with the additional contribution from the management, operations, and maintenance contract with the National Water Co. in the Kingdom of Saudi Arabia,” Manila Water said.

“The improvement in contribution of MWPV was driven by the good performance of its domestic subsidiaries for the period, such as Laguna Water and Clark Water,” it added.

J.V. Emmanuel A. De Dios, Manila Water president and chief executive officer, said the company is hopeful that water consumption will increase with the easing of quarantine restrictions, the coming holiday season and the further opening of the economy.

“Despite the challenges brought about by the pandemic, we are also extremely excited with the addition of the Pangasinan bulk water project to our local ventures as well as the second water contract for the Eastern Cluster in the Kingdom of Saudi Arabia,” Mr. De Dios said.

“These twin developments are perfectly aligned with Manila Water’s vision of being recognized as a global Filipino company in the field of water and wastewater services,” he added.

Manila Water provides water and wastewater services in the eastern part of Metro Manila, which includes Marikina, Pasig, Taguig, Makati, San Juan, Mandaluyong, portions of Quezon City and Manila, and Rizal province.

On Thursday, shares of Manila Water at local bourse dropped by 2.20% or 55 centavos to close at P24.50 apiece. — Revin Mikhael D. Ochave

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