AYALA-LED Manila Water Co., Inc. posted a 17% increase in first-quarter net income to P1.69 billion, with its Manila concession area mainly supporting the growth along with the expansion of its operating subsidiaries.
“We are pleased with the results of our efforts early this year, as it is the result of the groundwork we have laid for future growth. As we continue to build our business both domestically and in the region, we realize the importance of building a strong core, while remaining agile to adapt to various market conditions,” Ferdinand M. dela Cruz, Manila Water president and chief executive officer, was quoted as saying in a statement.
On a consolidated level, Manila Water revenues rose by 8% to P4.71 billion due to the higher water volume sold, or billed water, and higher supervision fees.
Other income grew by 69% to P153 million, largely driven by the higher equity stake in the net income of associates, the company said.
The income share of international subsidiaries increased by 26% from the previous year, with the new acquisitions in Thailand and Indonesia making their respective contributions.
Manila Water said continuing infrastructure build-up resulted in a 63% rise in consolidated capital expenditure.
Cost of services and operating expenses rose by 19% to P1.78 billion.
The company said the Manila concession’s billed volume improved by 4%, “driven by an increase in billed connections to total nearly 970,000, as well as a noted uptake in per capita consumption.”
The average tariff also increased to P30.30 per cubic meter after the implementation of the 2.8% adjustment in rates to factor in changes in the consumer price index in January this year.
Capital expenditure for the three-month period reached P2.9 billion, an increase of 81% from the same stretch last year.
The local subsidiaries under Manila Water Philippine Ventures, Inc. (MWPV) contributed to a 23% rise in revenues to P876 million, mainly backed by a 4% growth in consolidated billed volume and higher average tariff levels in subsidiaries Laguna AAA Water Corp. at 8% and Boracay Island Water Co. at 24%.
MWPV recorded a net income contribution increase to P167 million, 14% higher than the level a year ago. The unit recently received notices of award from two water districts in Bulacan province for 25-year concessions. The projects cover water and used water projects in the municipalities of Balagtas and Bulakan.
Manila Water said its international subsidiaries under Manila Water Asia Pacific Pte. Ltd. posted a 26% rise in equity share in net income of associates.
“All foreign subsidiaries posted higher revenues, coupled by additional contributions from new acquisitions East Water in Thailand, as well PT Sarana Tirta Ungaran in Indonesia,” the company said.
On Wednesday, shares in Manila Water declined by 1.89% to close at P26 each. — Victor V. Saulon