West Zone concessionaire Maynilad Water Services Inc. reported a double-digit increase in first-quarter profit as a growing customer base and improved operational efficiencies offset the impact of consumer rebates.

In a briefing on Wednesday, April 29, Christopher Lichauco, Maynilad chief operating officer, said the concessionaire’s net income for the three months ended March rose 10.3 percent to ₱4 billion.

At end-March, revenue climbed 6.2 percent to ₱9.1 billion, bolstered by a 1.5 percent uptick in billed volume, which reached 136.1 million cubic meters.

The company’s earnings before interest, taxes, depreciation, and amortization (Ebitda) grew to ₱6.5 billion.

Maynilad attributed the bottom-line growth to aggressive infrastructure investments aimed at reducing water loss.

Lichauco said non-revenue water—water that is produced but lost before it reaches the customer—fell to 30.7 percent from 36.2 percent a year earlier. The improvement followed a series of leak detection initiatives and an extensive pipe replacement program across the concession area.

The financial gains come despite a series of service challenges in the southern reaches of the capital. Maynilad processed millions of pesos in rebates for customers served by the Putatan and Poblacion treatment plants following issues with water quality.

In April, 98,331 customers received a credit of ₱432.92 each, while another 165,000 customers saw a ₱327.96 refund in May.

Lichauco explained that high turbidity levels, which spiked to between 600 and 800 meters per hour, forced the company to throttle production at certain facilities to ensure safety.

To prevent a recurrence, he said Maynilad is upgrading filters and enhancing treatment capacity to secure a daily supply of 80 million liters.

Despite these localized disruptions, the company reported that water availability across its entire service area rose to 97.9 percent.

Meanwhile, Ricardo delos Reyes, Maynilad chief financial officer, told reporters that the penalties and rebates would not have a material impact on the company’s financial performance for the second quarter.

However, the utility is bracing for external headwinds as Ramoncito Fernandez, Maynilad chief executive officer, said the company is monitoring geopolitical tensions in the Middle East, which could drive up operational costs and lead to minor revenue fluctuations.

While Fernandez expects cost increases, he noted that Maynilad has already quantified the potential impact of the conflict and is implementing mitigation strategies to protect consumers from sudden price spikes.