Manila Water Co. Inc. posted a net income of ₱1.23 billion in the first quarter of 2019, down 27 percent year-on-year, after the firm grappled with the water supply shortage in its concession area.
Revenues grew 8 percent to ₱5.1 billion, driven by higher tariff and improved operations from its concession areas outside Metro Manila.
A voluntary, one-time bill waiver program to compensate for the inconvenience brought by the water shortage, however, capped the revenue growth.
Operating expenses jumped 39 percent to ₱2.5 billion, up 39 percent from a year ago, mainly because of a penalty of ₱534 million imposed by the Metropolitan Waterworks and Sewerage System.
Net income margin stood at 24 percent. Excluding the impact of the water supply shortage, core net income rose 22 percent to ₱2.1 billion.
Manila Water said it restored 98 percent of water availability to at least eight hours at 7 psi, or at ground floor level, as of May 8 this year.
Net profit of unit Manila Water Philippine Ventures Inc. outside the Metro Manila coverage, meanwhile, climbed 7 percent to ₱174 million in the first quarter of 2019, as division Estate Water expanded its customer base.
The unit established Estate Water to exclusively provide water and used water services to Ayala Land Inc,
Estate Water registered a net income of ₱93 million in the first three months of 2019, up 166 percent on year.
Other domestic subsidiaries such as Clark Water, Laguna Water and Boracay Water registered lower earnings for the period due to a slowdown in demand and higher operating costs.
Manila Water Asia Pacific, which holds Manila Water’s international investments in the region, more than doubled its income to ₱135 million with the full recognition of the acquisition of East Water in Thailand, coupled with additional profit from MWAP’s industrial park water supply operations at PT Sarana Tirta Ungaran in Indonesia.
The operating subsidiaries in Vietnam—Duc Water and Kenh Dong Water—contributed lower profits on decreased demand.
