Razon-led Manila Water Co. reported an overall growth in its consolidated net income in 2024 by nearly 87 percent.

In a statement on Monday, Feb. 24, Manila Water said last year's net’s income stood at ₱10.5 billion, driven by its concession performance, contribution from its Non-East Zone Philippines (NEZ PH) businesses, and cost management and operational initiatives.

The total group-wide capital expenditures (capex) for 2024 hit ₱26.3 billion, with 90 percent of this going over to its East Zone concession at P23.6 billion.

“These investments underscore the company’s focus on ensuring sustainable water supply and wastewater coverage, while continuing the rollout of service improvements for its growing customer base,” it stated.

Throughout the year, the firm’s total earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed by 26 percent from ₱20.5 billion to ₱25.9 billion in 2023.

Its core net income also grew by ₱14.2 billion, which is higher by 48 percent year-on-year, while total revenues were up by 19 percent to ₱36.6 billion from 2023’s ₱30.7 billion.

Drivers to the growth of its revenues were the high billed volume and the implementation of tariff adjustments in the East Zone concession and several NEZ PH businesses.

Additionally, Manila Water’s overall costs and expenses weighed in at approximately ₱11.8 billion.

In the case of its East Zone concession, revenues rose to ₱28.8 billion last year, which is a 20 percent increase due to the second tranche of the rate rebasing tariff adjustment that was implemented in January 2024. Steady consumption also backed this financial climb.

Its EBITDA was also up by 22 percent by ₱20.7 billion.

Aside from the concession business, NEZ PH businesses soared from ₱750 million to ₱2.3 billion through the help of higher billed volume, tariff adjustments, and higher contributions from its key businesses.

In 2024, its international units saw a slight slowdown due to lower contributions from Thailand and Vietnam, stating that “the company continues to closely assess its international portfolio while continuing to explore opportunities for long-term value creation.”

Other movements last year included several strategic divestments such as the Bulacan businesses under NEZ PH which generated ₱894 million, while its impairment provisions were at ₱4.5 billion to cover investments in East Water in Thailand and Saigon Water in Vietnam.

Jocot de Dios, president and chief executive officer of Manila Water, also cited its businesses beyond the East Zone, namely in Laguna, Boracay, Cebu, Clark.

“I am particularly buoyed by the solid growth of our Non-East Zone businesses, which more than tripled earnings to surpass the ₱2 billion mark,” he said. “The work we do with government and water district partners in Laguna, Boracay, Cebu, Clark as well as the communities served by our Estate Water Group, continues to propel us to do better outside of our core East Zone business which has also shown stellar results.”

The total billed connections, which is the amount of water service connections within the concession and is measured by count, inched up by four percent to 1.37 million.

“Volumes have been increasing while water losses have been receding. We will continue to improve services, drive operational efficiencies and create more value for our shareholders and stakeholders.”