MANILA WATER Co., Inc. posted a 6% increase in net income for 2018 to P6.5 billion after the steady performance of its water concession in Metro Manila and the boost it received after the approval of its positive tariff adjustment and business plan, the Ayala-led company said.
In a disclosure, the company said the year was capped by a healthy growth in billed volume, which rose by 4% on a consolidated level with the Manila east zone concession leading with a 3% increase rise.
“I see our 2018 performance as a testament to our resolve, as we surmounted significant challenges to come out stronger,” said Ferdinand M. Dela Cruz, Manila Water president and chief executive officer.
He said in the Manila concession, the company forged a “clear path to regulatory stability” with the positive conclusion of its rate rebasing.
“For our domestic operations, we remained true to our service commitments even under sudden market disruptions like the Boracay closure. We are excited for the road ahead, as we follow through on our growth aspirations in ASEAN and in other new markets,” Mr. Dela Cruz said.
Last year, Manila Water’s billed volume base was bolstered by its new international acquisitions in Thailand and Indonesia, adding 320 million cubic meters (mcm) to raise the consolidated billed volume to exceed the 1-billion cubic meter threshold.
The company said its management’s continued efficiency and cost management initiatives resulted in the continued strength of its earnings before interest, tax, depreciation and amortization, as well as net income margins, at 64% and 33%, respectively.
Outside the Manila concession, subsidiary Manila Water Philippine Ventures, Inc. won 11 new projects last year. Its subsidiaries continued to post positive revenue growth, increasing 6% to P3.3 billion.
On the previous year’s challenges, Manila Water cited its unit Boracay Island Water Co., Inc., which recorded a decline in billed volume because of the government-mandated six-month closure of the island to make way for environmental rehabilitation.
Overseas, Manila Water recorded its largest regional investment to date, with the acquisition of an 18.72% stake in Eastern Water Resources Development and Management Public Co. Ltd. in Thailand. It also acquired a stake in PT Sarana Tirta Ungaran in Indonesia.
On Tuesday, shares in Manila Water slipped 1.65% to P26.85 each. — Victor V. Saulon
