AYALA-LED Manila Water Co. Inc. (Manila Water) reported a 2 percent decline in its net income in the first quarter to P1.45 billion from P1.48 billion in the same period in 2016.
In a disclosure to the local bourse last week, Manila Water said the decrease was due to higher costs from new investments and expansion initiatives.
Consolidated revenues went up 3 percent year-on-year to P4.35 billion on the back of a slight increase in billed volume during the period.
Manila Water said it continues to pursue growth opportunities outside the Manila Concession. In the first quarter, it said its businesses outside the Manila Concession accounted for 19 percent of its net income.
The water company holds the exclusive right to provide water and used water services to the east zone of the franchise area of the Metropolitan Waterworks and Sewerage System (MWSS).
Revenues from the Manila Concession were flat at P3.6 billion, tracking the one percent growth in billed volume during the period. Non-revenue water stood at 12.2 percent, a one-percentage point decline from the previous year. Collection efficiency stood at 102 percent.
Meanwhile, Manila Water Philippine Ventures (MWPV), Manila Water’s holding company for its domestic subsidiaries outside the Manila Concession, recorded attributable net income of P145 million, 36 percent higher than the previous year, bolstered by the robust performance of Estate Water, Laguna Water, and Cebu Water.
Estate Water recorded net income of P66 million, surging nearly fourfold, while strong billed volume growth in Laguna Water and Cebu Water drove their net earnings during the period, which expanded 24 percent to P54 million, and 46 percent to P19 million, respectively.
Manila Water continues to ramp up its expansion initiatives geographically and across its products and services. MWPV, through Laguna Water, will be taking over the water distribution of Calauan Town in Laguna, while Boracay Water has started supplying bulk water to Malay Town in Aklan Province.
In Vietnam, Manila Water Asia Pacific completed negotiations with Tan Hiep, the water supplier of Saigon Water Corporation in the Hoc Mon District of Ho Chi Minh City, for bulk water operations project. It also won a full water distribution operations contract to serve the central highlands of Gia Lai Province in Vietnam.
Meanwhile, Manila Water Total Solutions launched in April the 500-milliliter “Healthy Family Mini” purified water.