Manila Water posts 6% rise in H1 net income to P8.5 billion

MANILA, Philippines — Razon-led Manila Water Co. Inc. recorded a six-percent increase in net income in the first half, driven by higher tariffs from its east zone concession area and regional units. In a stock exchange filing, Manila Water said its consolidated net income amounted to P8.47 billion, higher than the P7.96 billion recorded in the same period last year. Operating revenues in the January to June period reached P22.19 billion, an 11-percent increase from P20 billion a year ago. Manila Water said that about 75 percent of its operating revenues were derived from water sales, while the remaining 22 percent came from environmental and sewer charges. The company added that the 11-percent increase in average tariffs from its main concession area drove the higher earnings in the first semester. The Metropolitan Waterworks and Sewerage System regulatory office earlier approved an P8.39-per-cubic-meter rate increase for Manila Water, effective at the start of the year. Also driving the higher topline for the period were tariff hikes from its Clark Water, Boracay Water and other non-east zone businesses and higher supervision fees from Laguna Water. “Our first half results show that even in uncertain times, our company can still deliver strong performance, provide reliable service and create lasting value for our stakeholders,” Manila Water president and CEO Robert Locsin said in a separate statement. Locsin added that despite the presence of geopolitical concerns and El Niño, the company remains confident in its ability to navigate current headwinds by improving its operation, optimizing resources and strengthening service delivery. “In doing so, we can translate operational gains into meaningful financial results, while continuing to provide reliable and essential water service to our customers,” he added. In its east zone concession, the company logged a 12-percent increase in revenue to P17.86 billion, while net income was nine percent higher at P7.79 billion in the first half. It added that its business units outside the concession area saw revenues expand by two percent to P4.86 billion, resulting in a 15-percent increase in net income to P982 million. Total billed volumes reached 439.4 million cubic meters, while billed connections amounted to 1.42 million. Manila Water said that its capital expenditures amounted to P6.8 billion in the January to June period, mainly used on wastewater expansion, network reliability and water supply projects.