MANILA WATER Co., Inc. recorded a 7% increase in 2017 core net income to P6.5 billion, driven largely by the strong sales of its Metro Manila water concession, the expansion of other local operations and higher supervision fees, the company said on Tuesday.

The “robust” income rise came with a 5% growth in consolidated revenues to P17.7 billion, it told the stock exchange. Net of non-recurring expenses, reported income increased by 1% to P6.1 billion.

“We are proud of our ability to register solid core income growth in 2017, as it highlights the strength of our business, and our people. Building on this foundation, we continue to build our business and expand our market reach, both domestically and in the region,” said Ferdinand M. dela Cruz, Manila Water president and CEO.

“Our organization is now geared up for growth, and we are very excited to take on the opportunities that lie ahead,” he added.

Manila Water said all operating units last year reported “notable growth” in billed volume. The Manila concession grew by 2% as it connected new customers in previously unserved areas. It said with the concession’s continuing expansion, it now serves more than 6.5 million people in the eastern side of Metro Manila.

Its other subsidiaries in the Philippines — operating in Boracay, Cebu, Clark and Laguna, and with the addition of estate water — all posted double-digit billed volume increases, the company said.

Other income net of expenses rose by 20% to P541 million because of the higher equity share in the net income of associates.

Manila Water said its two bulk water companies in Vietnam, Thu Duc Water and Kenh Dong Water, together with Saigon Water, contributed P457 million in net income, up 24% from 2016.

The company said consolidated operating costs and expenses rose by 19% to P7.4 billion, led by the 67% increase in overhead costs to P1.5 billion.

Of the total overhead costs, provision for uncollectible receivables made up 38%. Direct costs, which rose by 12%, was mainly due to higher power and light charges from higher consumption and rates.

“The healthy balance sheet enabled Manila Water to carry out an unprecedented capital expenditure program rollout in 2017,” the company said.

Consolidated capital expenditures increased by 48% to P13 billion after the company’s “intensified infrastructure build-up to lay additional groundwork for future growth. Its strong balance sheet is supportive as well of its new acquisitions.”

On Tuesday, shares in Manila Water climbed 2.39% to P27.90 each. — Victor V. Saulon

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