By Madelaine B. Miraflor
Ayala-led Manila Water Company Inc. is still reeling from the water supply shortage issue it faced in March, with its net earnings continuously falling up to the third quarter of the year.
In a filing with the local bourse, Manila Water disclosed that its earnings decreased 11 percent from last year to stand at P4.4 billion as of the third quarter, with its performance “still dampened by the impact of the water supply shortage in its Manila Concession early this year”.
Manila Water is currently having tough year. Aside from the supply mess it experienced in March— which costs the company billions in fine and self-imposed penalty — the company also had to deal with a Metro Manila wide water crisis due to the declining water level in Angat Dam.
What happened to the company in March was first reflected on Manila Water’s first half earnings when its net income fell by 18 percent.
The company, however, noted that during the third quarter of the year, the company booked increased contribution from its domestic subsidiaries.
As a result, its core net income stood at P5.8 billion for the period – an improvement of over 10 percent from last year.
Its consolidated revenues, on the other hand, grew 10 percent to P16.1 billion, driven largely by the higher contribution of the domestic businesses outside the East Zone.
This growth was realized despite the downward impact of the one-time Bill Waiver Program implemented in the Manila Concession during the water supply shortage early this year, Manila Water said.
To be specific, the company’s consolidated costs and expenses increased 18 percent from the previous year to P7.0 billion, still primarily driven by the penalty imposed by Metropolitan Waterworks and Sewerage System (MWSS) and the additional service recovery and operations augmentation costs in relation to the water supply shortage.