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With the expiration of its income tax holiday, Manila
Water Co., Inc. posted a double-digit decrease in net income in the
first quarter of the year as compared to a year ago.
Manila Water, a unit of the Ayala
group, reported that its profits in the first quarter of 2007 dipped
by 15 percent to P509 million as against its income in the
comparative period a year ago because of income tax payments
amounting to P234 million.
Despite the lower income figures,
the company banks on its 19-percent revenue growth of P1.72 billion
for continued optimism. Earnings before interest, tax, depreciation
and amortization (Ebitda) jumped by 33 percent to P1.13 billion at
the end of March 2007, owing to effective management of operating
expenses.
Antonino T. Aquino, Manila Water
president, said: “We are pleased to note that our first quarter
results exceeded our business plan. We are now seeing the initial
results of our aggressive expansion initiatives, particularly in the
areas of Taguig, Antipolo, Cainta, Taytay, Rodriguez, San Mateo, and
even up to Baras and Jala-jala.”
This robust growth at the topline
helped mitigate the impact of the expiration of the company’s
income tax holiday.
“We are confident that we can
sustain this positive momentum for the rest of the year, as we
continue our aggressive capital investment program in the East
Zone,” Aquino added.
Manila Water earlier announced it
would embark on a P30-billion spending spree within its concession
area in the next five years. The amount will be used for projects
such as extension of the water network up to the farthest areas in
Rizal, expansion of sewer and sanitation coverage and development of
new water sources.
In the same meeting, the company
assured its stockholders that it could sustain the current cash
dividend per share even with the prospective tax payment and huge
capital requirements, through its strong cash earnings as
demonstrated by its Ebitda and good collection efficiency.
--Euan Paulo C. Añonuevo
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