MANILA -- Manila Water posted an earning of PHP1.23 billion for the first quarter of 2019 which is 27 percent lower compared to the same period last year, a company official bared Thursday.
“The slowdown was mainly due to the impact of the water supply shortage in its Manila concession business,” said Jeric T. Sevilla Jr., Manila Water corporate communications head.
“On a group level, Manila Water revenues grew 8 percent to PHP5.1 billion, driven by higher tariff in the Manila concession and improved top-line growth of its non-Manila concession businesses,” he added.
However, Sevilla said the “growth was partially offset by the voluntary, one-time Bill Waiver Program to help alleviate the inconvenience of all customers and to those severely affected by the water shortage in the Manila concession.”
On the other hand, Manila Water’s operating expenses reached PHP2.5 billion, up 39 percent from a year ago, he said.
Sevilla said this was “driven by higher costs and expense", adding that “a major driver of this increase was the provision of financial penalty imposed by the Metropolitan Waterworks and Sewerage System (MWSS) amounting to PHP534 million which the company has decided to pay.”
“In all, Manila Water net income margin for the period stood at 24 percent. Excluding the effects of the water supply shortage in the Manila Concession, core net income grew 22 percent to PHP2.1 billion,” he said.
Manila Water continues to make progress on its service recovery efforts, he said.
As of May 8, the company has achieved 98 water availability of at least eight hours at 7 psi (pound-force per square inch), or at ground floor level. It has also reached 72 percent 24-hour water availability at 7 psi.
Sevilla assured that the company continues to work on various distribution solutions to address pocket areas of less than eight hours of supply.
Cardona Water Treatment Plant has been producing 50 million liters per day (MLD) and deep wells have augmented the Angat water supply with production of 30 MLD. Cross-border flows are at 16 MLD.
Outside the Manila concession, Manila Water Philippine Ventures (MWPV) revenue climbed 7 percent to PHP174 million in the first quarter of 2019.
Growth in this segment was led by MWPV’s business-to-business arm, Estate Water, which realized notable gains in its customer base through the takeover of new estates and key accounts. Estate Water net income for the period stood at PHP93 million, 166 percent more than the previous year.
However, other domestic subsidiaries such as Clark Water, Laguna Water and Boracay Water registered lower earnings for the period due to a slowdown in demand and higher operating costs.
Manila Water Asia Pacific (MWAP), which houses Manila Water’s international investments in the region, more than doubled its earnings to PHP135 million with the full recognition of the acquisition of East Water in Thailand, coupled with additional income from MWAP’s industrial park water supply operations at PT Sarana Tirta Ungaran in Indonesia.
The operating subsidiaries in Vietnam -- Thu Duc Water and Kenh Dong Water, registered lower income contribution due to lower demand, Sevilla said. (PNA)
