Manila Water Company Inc. posted P6.9 billion in net income in the first half of 2024 as tariff adjustments for its east zone concession and several non-east zone Philippines (NEZ PH) businesses provided solid topline support to the continued growth in customer demand.
Consolidated revenues grew 19 percent to P18.4 billion following the implementation of approved tariff adjustments in the east zone and supported by 2-percent consolidated growth in billed volume.
Manila Water president and chief executive Jocot de Dios said they were encouraged by the continued recovery and growth of the business.
“Our performance results are a clear indication of the resurgence in economic activity being experienced in the different areas we operate. Against this backdrop of potential growth opportunities, both in the communities we currently serve, and in the markets which we look to enter, it becomes even more important that we are efficient in our operations and effective in our project execution. I am confident that we in Manila Water will be up for these exciting challenges ahead,” he said.
Cost of services and expenses went up by 4 percent to P5.9 billion. This was driven by the continued addition of new facilities in line with service improvement and expansion.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) improved by 26 percent to P2.7 billion, with EBITDA margin moving up 3 percentage points to 69 percent.
Net income margin strengthened by 5 percentage points to 38 percent.
Manila Water’s east zone concession posted revenues of P14.5 billion, up by 20 percent.
The second tranche of the rate rebasing tariff adjustment early this year was supported by billed volume growth coming from sustained recovery of economic activity.
Meanwhile, cost and expenses increased by 9 percent to P4 billion due to costs in line with the addition of new facilities, as well as repairs and maintenance costs.
The east zone concession posted a net income of P6 billion for the period, growing by 31 percent from last year.
Beyond the east zone concession, NEZ PH posted strong earnings to more than double its net income to P4.3 billion.
The higher contributions from its Laguna Water and Estate Water businesses were further supported by tariff adjustments in several of its other subsidiaries, including Clark Water and Boracay Island Water.
The strong topline performance improved EBITDA by 39 percent to P2.2 billion, with EBITDA margin climbing 6 ppts to 52 percent.
Net income of Manila Water’s associates overseas was largely affected by the decline in performance of its investment in Thailand.
Manila Water said it continued its implementation of various water and wastewater projects to ensure prudent compliance with regulatory and service commitments.
Group capital expenditures reached P10.1 billion in the first half of the year, with the east zone concession accounting for 92 percent of total capex at P9.3 billion.
