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Manila Water unit signs P3-B loan with two banks

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A SUBSIDIARY of east zone water provider Manila Water Co., Inc. has signed a loan to fund its capital expenditure programs and expansions projects.

In a disclosure to the stock exchange on Tuesday, Manila Water Philippine Ventures, Inc. (MWPVI) has applied for an additional P3-billion term loan facility with Security Bank Corp. and Metropolitan Bank and Trust Co., Inc. as co-lenders.

The loan is in addition to MWPVI’s P4-billion loan agreement with the same banks in October 2016.

On May 8, Ayala-led Manila Water reported a 4% increase in its consolidated net income for the first quarter of 2020 to P1.3 billion. The water company’s concession earnings were at P1.63 billion while its revenues climbed 9% to P5.5 billion.

However, domestic operations under MWPVI recorded a net loss of P151 million for the first quarter. The loss was attributed to the lower contribution of Estate Water caused by its lower supervision fees.

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“The decline was primarily the result of the change in accounting treatment for said fees, but also in part by the stoppage of projects due to the enhanced community quarantine,” the water company said.

On Tuesday, shares in Manila Water fell 3.61% or P0.42 to close at P11.20 each. — Revin Mikhael D. Ochave

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