Manila Water Company Inc. said Thursday net income grew 6 percent in the first nine months to P3.4 billion from a year ago, driven by the significant increase in contribution from international affiliates and key domestic subsidiaries and lower provisions for income tax.
The company said that on a group level, revenues fell 5 percent to P15.3 billion on lower billed volume in the east zone concession and in several domestic subsidiaries, with the continuing impact of COVID-19 restrictions being felt across the company’s customer base.
The decline in revenues was partially offset by the strong performance from the international affiliates, with equity share in net income of associates growing by more than 4 times from last year to P486 million.
Manila Water’s cost and expenses went up 7 percent to P6.2 billion. The increase was partially offset by lower power and chemical costs in line with lower production during the period and the 40-percent drop in provision for income tax with the adoption of the CREATE Law.
The east zone concession registered a 4-percent decline in billed volume for the period on lower consumption in the commercial and industrial segments with the continued impact of quarantine restrictions. Despite the challenges posed by COVID-19, the east zone continued with its mandated capital expenditure program, executing nearly P7 billion worth of projects in the period. The projects are mainly for wastewater expansion, network reliability and water supply projects in line with the fulfillment of service obligations under its service improvement plan.
The growth in Manila Water Asia Pacific and improvement in Manila Water Philippine Ventures offset the decline in the east zone concession.
The growth in MWAP came by way of a higher equity share in the net income of associates from East Water (Thailand), Thu Duc Water (Vietnam) and Kenh Dong Water (Vietnam).
Manila Water President and CEO Jocot de Dios expressed optimism about gradual billed volume recovery to pre-pandemic levels, particularly in the east zone service area with the easing of quarantine restrictions and the reopening of the economy with the reduced COVID threat.
“As commercial and industrial establishments begin to expand their operations as a result of the downgrade of IATF alert levels, we are hopeful that consumption will show an upward trajectory especially with the coming holiday season,” said de Dios.
“Despite the challenges brought about by the pandemic, we are also extremely excited with the addition of the Pangasinan bulk water project to our local ventures as well as the second water contract for the Eastern Cluster in the Kingdom of Saudi Arabia. These twin developments are perfectly aligned with Manila Water’s vision of being recognized as a global Filipino company in the field of water and wastewater services,” De Dios said.