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Philippines: Manila Water income drops 8% in Q1
MANILA, Philippines — Manila Water Co. Inc. reported an eight percent decline in its net income in the first quarter to P1.3 billion, largely due to the lower contribution from its east zone concession.
In a disclosure to the Philippine Stock Exchange, Manila Water said consolidated operating revenues fell by 12 percent to P4.85 billion on lower billed volume from commercial and industrial segments in its concession area.
The decline was also attributed to the lower billed volume from the firm’s domestic subsidiaries, as well as supervision fees from Manila Water Philippine Ventures Inc (MWPVI).
Total billed volume remained flat at 316 million cubic meters (MCM).
Outside of the east zone concession, MWPVI narrowed its net loss to P56 million from P151 billion, which was caused by the one-time recognition of the discontinued operations of the Zamboanga Water last year amounting to P193 million.
MWPVI registered total billed volume of 25.9 MCM, unchanged from last year.
Meanwhile, Manila Water Asia Pacific (MWAP), which houses Manila Water’s international investments in the region, swung to a P123 million net income from the P193 million net loss in the same period last year, largely due to the recognition of additional expenses in relation to its investments in Cu Chi, Saigon Water and East Water.
MWAP posted a five percent increase in its total billed volume to 172.4 MCM from 164.4 MCMC a year ago.
Consolidated cost and expenses dropped by four percent to P1.89 billion due to lower direct costs, which was partially offset by higher personnel and premises costs.
Manila Water currently serves the east zone, covering parts of Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, most parts of Quezon City, portions of Manila as well as several towns in Rizal.
The company recently signed a revised concession agreement with the Metropolitan Waterworks and Sewerage Systems, which allows it to serve the east zone until 2037.
Source: https://www.philstar.com/business/2021/05/12/2097525/manila-water-income-drops-8-q1