Manila Water Co. Inc. said Tuesday it posted a P3.1-billion net income in the first quarter of 2024, driven by sustained recovery of customer demand and implementation of tariff adjustments in both its east zone concession and other businesses.
Consolidated revenues increased 19 percent to P8.8 billion, as billed volume growth was led by recovery of the east zone’s commercial and industrial accounts and supported by the 15-percent increase in revenues from Manila Water’s non east zone business.
Mania Water said lower direct costs for the period helped keep overall cost levels steady.
Manila Water president and chief executive Jocot de Dios sees the stability regained by the business as a solid foundation for sustained recovery and growth.
“We see the successful implementation of our approved tariff adjustments in the East Zone and several of our operations in the country as a clear sign of stability and recovery for our sector. These developments enable us to execute our projects aimed at improving service quality, providing reliable water supply, and expanding our network coverage to more communities,” he said.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) went up 29 percent to P6.2 billion, while EBITDA margin climbed 5 percentage points from last year to 70 percent.
Net income after tax margin strengthened to 35 percent, the company said.
The company said revenues at its east zone concession were up by 21 percent to nearly P7 billion with the implementation of the rate rebasing tariff adjustment in January this year and the sustained increase in consumption across all customer segments.
Meanwhile, cost and expenses increased 4 percent to P1.9 billion on higher premises and personnel costs in line with the completion of additional facilities.
Manila Water implemented the second tranche of tariff adjustments in January in line with its approved Rate Rebasing Service Improvement Plan. This amounts to a tariff increase of P6.41 per cubic meter.
Manila Water said it is committed to investing close to P100 billion over its 5-year rate rebasing period for its various water supply and network improvement projects, as well as to expand coverage and capacity of its wastewater system.
