Manila Water Company: Manila Water Reports Strong 2006 Earnings

Manila Water Reports Strong 2006 Earnings

Posted: Thursday March 22, 2007

Manila Water reported today that its net income in 2006 reached P2.4 billion reflecting an 19% growth over its 2005 level while revenues was posted at P6.5 billion showing a 17% increase. This solid financial performance is a combined result of the Company’s continuous operating efficiency improvements and unrelenting efforts to provide better water and wastewater services to its customers.

“The improved level of net income was a result of our P4.8 billion capital investments in 2006. This brings our total investments to P23 billion since 1997. We expect to continue the same level of investment in the coming years. As a matter of fact, in 2007, we have earmarked more than P4 billion for projects that will allow us to sustain operating efficiencies, ensure the reliability of the system and continue our network expansion to the farthest parts of our concession area.” Manila Water President Antonino T. Aquino said.

In 2006, Manila Water achieved new record highs in its operating performance. Water sales registered its all-time high at 948 million liters per day as of yearend indicating a 10% growth over the past year’s level and the highest in the past five years. This achievement was supported by its aggressive expansion programs which allowed it to add 103 thousand new household connections bringing total households served to 870 thousand as of December 2006. Manila Water also emphasized that it has already provided clean and affordable water to more than one million poor people in the East Zone. Water availability has likewise improved with 98% of the customers connected to the central distribution system receiving 24 hour water supply.

The Company has likewise set a significant milestone in terms of system losses reduction. System losses, or non-revenue water, dropped to its historic low of 30% as of end of 2006, a five percentage points cut from the previous years level. At this level, the company has outperformed some of its counterparts in the Asian region. The company attributes this accomplishment to its effective management of its water supply, coupled with massive pipe and meter replacement projects. To-date, the Company recovers more than half of the water volume that was initially lost due to network inefficiencies, when it first took over in 1997.

These continuous enhancements in Manila Water’s operating efficiencies are anchored on careful planning and disciplined execution of its capital investment program. Since 1997, the Company has laid over 1,877 kilometers of new pipelines within the East Zone, representing more than half of its total water network. Sewerage and sanitation programs also made substantial progress during the past year through the Manila Third Sewerage Project (MTSP). The MTSP is a P4 billion wastewater project being carried out by Manila Water in cooperation with the World Bank.