Manila Water's profit jumps 61% in nine months
At A Glance
- Manila Water Co. Inc.'s profit rose by over half in the first nine months of the year to P7.26 billion. Net income in the third quarter alone reached P2.3 billion, a 37% increase from the previous year.<br>Consolidated operating and non-operating revenues increased by 39% to P23.1 billion at the end of September.<br>Factors contributing to the growth include a 37% increase in average tariff, 4% billed volume growth, and higher cross border charges.<br>Non-east zone revenues increased by 29% due to tariff increases in business units and a 1% increase in billed volume.<br>Integrated used water and pipelaying projects revenues, as well as higher sewer revenues, boosted overall revenue.<br>About 73% of operating revenues came from the sale of water, while 19% came from environmental and sewer charges.<br>Consolidated cost of services and expenses increased by 12% to P8.4 billion.<br>Higher overhead costs, except for manpower costs, contributed to the increase.<br>Taxes and licenses increased significantly, driven by higher real property taxes and business taxes.<br>Power costs increased by 13% due to higher consumption and power rates.<br>EBITDA increased by 59% to P15.25 billion, with an EBITDA margin of 66%.<br>Depreciation and amortization expenses increased by 5% to P3.2 billion due to completed projects, offset by changes in useful life and depreciation method.
Razon-led Manila Water Co., Inc. reported that its profit for rose by more than half in the first nine months of the year.
In a disclosure to the Philippine Stock Exchange, Manila Water said its net income rose by 61 percent to P7.26 billion from January to September, compared to P4.52 billion in the same period last year.
In the third quarter alone, the company’s profit reached P2.3 billion, a 37 percent increase from the previous year.
The company's consolidated operating and non-operating revenues posted an increase of 39 percent to P23.1 billion at end-September, from P16.6 billion in the same period last year.
Manila Water attributed this growth to several factors, including a 37 percent increase in average tariff, a four percent rise in billed volume across all segments, and higher cross border charges.
The company also reported a 29 percent improvement in non-east zone revenues, which was due to tariff increases as well as a one percent increase in billed volume.
Additionally, the company's integrated used water and pipelaying projects, as well as higher sewer revenues from Laguna Water and Estate Water, contributed to the higher in revenue.
Manila Water stated that 73 percent of its operating revenues came from the sale of water, while 19 percent came from environmental and sewer charges. The remaining balance of revenues consisted of supervision fees and other charges.
Meanwhile, Manila Water reported a 12 percent increase in its consolidated cost of services and expenses in the first three-quarters, amounting to P8.4 billion compared to P7.5 billion in the same period last year.
The company attributed the increase primarily to higher overhead costs, although manpower costs decreased due to reduced employee benefits this year.
Specifically, taxes and licenses rose significantly by P415 million, driven by higher real property taxes and business taxes in the East Zone, as well as increased local business taxes in the Non-East Zone.
Similarly, power costs increased by 13 percent due to higher consumption and power rates.
As a result, Manila Water’s Earnings Before Interest, Taxes, Depreciation, and Amortization increased by 59 percent to P15.25 billion, with an EBITDA margin of 66 percent.
Depreciation and amortization expenses increased by five percent to P3.2 billion, primarily due to newly completed projects.
However, this increase was partially offset by the extension of the useful life of service concession assets under the franchise law and a change in the depreciation method for used water assets and concession fees, which now utilize billed volume. (Gabriell Christel Galang)