Manila Water posts a net income growth of 3% for 1H 2017

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Manila Water posted a net income growth of 3 percent for the 1st semester of 2017, supported by revenue expansion of 4 percent largely bolstered by its non-Manila concession businesses.

Manila Water said in a statement at the Analysts’ Briefing held today in Ayala Tower One and Exchange Plaza in Makati City that the Company’s net income from operations of its subsidiaries and new business expansions - Manila Water Philippine Ventures (MWPV) and Manila Water Asia Pacific (MWAP) has increased to 23 percent, equivalent to P 584 million with a consolidated net income of 18 percent. 

Fueling this growth, consolidated billed volume increased to 3 percent with continued expansion across nearly all subsidiaries. Manila Water’s consolidated capital expenditures also increased by 48 percent to P5 billion, as groundwork for future growth is laid.

For the Manila Concession (East Zone of Metro Manila), billed volume increased by 1 percent in the first half of 2017 to 242.2 million cubic meters (mcm), resulting in net income growth of 3 percent or P 2.9 billion. On Capital Expenditures, the Manila Concession spent a total of P 3.5 billion for capital expenditures in the first six months of 2017, a 68 percent increase versus 2.09 billion spent in the exact period of last year. Of the total expenditures, 94 percent was spent to wastewater projects, network reliability and water supply projects while 6 percent was accounted to concession fees paid to Metropolitan Waterworks and Sewerage System.

Beyond the Manila Concession, several key developments have supported Manila Water’s continued growth.  Estate Water, a subsidiary under Manila Water Philippine Ventures posted a billed volume growth of 360 percent to 2.3 mcm in its first six months of 2017 from 0.5 mcm in the same quarter of last year. Estate Water’s revenues rose to P 312 million in the first half of 2017 due to availability charges, income from different contracts, billed volume of customers through water and sewer revenues that resulted to 98 percent increase from the same period of last year.

At the same time, the subsidiaries under Manila Water Philippine Ventures continued its service coverage expansion in its respective areas, posting a 13% growth in total billed connections to 115,644 from 103,733 during the same period last year. On June 14, 2017, subdisiary Boracay Water received the approval of its new rates from the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Regulatory Office for implementation beginning July 1, 2017. The approved tariff adjustment will be staggered over three years from 2017 to 2019, wherein the determined upward adjustments on the basic charge will be implemented.


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