Manila Water Company reported a 24 percent decline in consolidated net income to P3.2 billion in the first nine months of 2020 from the P4.19 billion earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said that, excluding the one-offs, core income stood at P4.2 billion, 26 percent lower than the same period last year.

“This was driven by lower contribution from domestic subsidiaries due to impact of COVID-19 pandemic, as well as one-off recognition of additional estimates for probable losses across the Group,” MWC said. 

Consolidated operating revenues was relatively flat at P16.07 billion in the first nine months of 2020 from P15.996 billion the previous year.

Higher water revenue contribution from the East Zone Concession and Laguna Water was offset by lower revenues from other domestic subsidiaries and lower other operating income which decreased by 43 percent as a result of lower supervision fees from Estate Water.

The Group derived 80 percent of its operating revenues from the sale of water, while 16 percent came from environmental and sewer charges.

Other revenues, which accounted for the balance, are comprised of supervision fees, after-the-meter services, connection fees and septic sludge disposal, among others. 

Equity share in net income of associates decreased 83 percent during the period to P93 million, mainly driven by lower contribution from Saigon Water and East Water, with the latter’s lower contribution due to the finalization of the Purchase Price Allocation (PPA).

The said decrease was slightly offset by the higher contributions from Thu Duc Water and Kenh Dong Water which increased by 17 percent and 32 percent respectively. 

Net income of the Parent Company stood at P3.37 billion for the period ended September 2020, a 9 percent year-on-year decline from P3.71 billion driven primarily by the impact of the recognized impairment loss in the Company’s investment in MWTS amounting to P563 million.