West Zone concessionaire Maynilad Water Services Inc. reported a 14-percent increase in net income in the first half, driven by lower interest expense and taxes, which more than offset higher operating expenses (opex).

In a media briefing on Tuesday, Aug. 4, Maynilad President and Chief Executive Officer (CEO) Ramoncito S. Fernandez said the company’s improved operational performance boosted first-half net income to ₱8.51 billion from ₱7.47 billion in the same period last year.

“We improved water surface coverage, reduced water losses, expanded wastewater and sanitation coverage, and sustained investments in infrastructure and network. These operational gains supported our financial performance and strengthened our ability to continue investing in the West,” Fernandez said.

Meanwhile, consolidated revenues rose four percent to ₱19.11 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 7.5 percent to ₱13.7 billion.

Furthermore, the company’s billed connections increased 1.6 percent to 1.58 million, while total billed volume rose to 280.8 million cubic meters during the period.

Maynilad’s non-revenue water (NRW), or water produced but lost or unbilled before reaching customers, declined to 29.7 percent in the January-to-June period.

To date, the company has spent about ₱12.89 billion in capital expenditures (capex) during the first half of the year, funding water and wastewater infrastructure, network efficiency and reliability, facilities, and other customer service improvements.

Ricardo Delos Reyes, Maynilad’s chief financial officer (CFO), said the company may reduce its full-year capital spending to ₱28 billion from the initial ₱30-billion plan.

According to the CFO, Maynilad is also weighing the option of tapping the equity market.

“By the end of the year, it depends on our capex spending for this year. At the moment, we are on track to deliver our budget, but if it falls short of that, then probably we won’t need it anymore,” he told reporters.

“We might advance our borrowings for next year, but it all depends on the interest rates.”

As preparations continue for the possible return of El Niño, state-run Metropolitan Waterworks and Sewerage System (MWSS) recently allocated 46 cubic meters per second (CMS) of water from Angat Dam. Christopher Lichauco, Maynilad’s chief operating officer (COO), confirmed that the company has begun discussions to secure a higher allocation.

Lichauco said the ideal allocation for Maynilad would be more than 60 percent.

“We have a reinforcement, we have La Mesa Dam, aside from Angat. We placed [water pumps] for added reinforcement to be able to draw water from La Mesa,” he added, noting that the reservoir is shared with East Zone concessionaire Manila Water Co. Inc.