Manila Water posts Php3.1 billion in earnings for 1Q 2024

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Manila Water posted ₱3.1 billion in net income for the first quarter of this year. The sustained recovery of customer demand and implementation of tariff adjustments in both its East Zone Concession and several of its Non-East Zone Philippines (NEZ PH) businesses were the main drivers for the positive performance. 

On a consolidated level, revenues increased by 19% to ₱8.8 billion. This was driven by billed volume growth led by recovery of the East Zone’s commercial and industrial accounts, and further supported by the 15% increase in revenues from Manila Water’s NEZ PH business. Furthermore, lower direct costs for the period helped keep overall cost levels steady. Consequently, consolidated EBITDA increased by 29% to ₱6.2 billion, while EBITDA margin climbed by 5 percentage points from last year to 70%. Similarly, NIAT margin further strengthened to 35%.

At Manila Water’s East Zone Concession, revenues for the period were up by 21% to nearly ₱7 billion with the implementation of the Rate Rebasing tariff adjustment in January this year, as well as the sustained increase in consumption across all customer segments. Meanwhile, cost and expenses increased by 4% to ₱1.9 billion. This was due to higher premises and personnel costs in line with the completion of additional facilities.

In January this year, Manila Water implemented the second tranche of tariff adjustments in line with its approved Rate Rebasing Service Improvement Plan. This amounts to a positive tariff adjustment of ₱6.41 per cubic meter. Manila Water remains committed to invest close to ₱100 billion over its current 5-year Rate Rebasing period for its various water supply and network improvement projects, as well as to expand coverage and capacity of its wastewater system.

Beyond the East Zone Concession, the company’s NEZ PH group posted ₱248 million in earnings for the period. This was driven by higher water revenues primarily from tariff adjustments and higher contributions from several of its key businesses. Cost and expenses were kept steady at ₱929 million with lower direct costs. For Manila Water’s international operations, earnings for the period were down at ₱7.0 million. The lower share in net income of associates was largely due to the decline in performance of its investment in Thailand, and Vietnam bulk water businesses.

Lastly, Manila Water continued its implementation of CAPEX projects under its various businesses to ensure prudent compliance with regulatory and service commitments. Group CAPEX reached ₱4.6 billion as of the first quarter of this year, with the East Zone Concession accounting for 82% of total CAPEX for the period with its ₱4.2 billion accomplishment.

Jocot de Dios, Manila Water President and CEO, sees the stability regained by the business as a solid foundation for sustained recovery and growth: “We see the successful implementation of our approved tariff adjustments in the East Zone and several of our operations in the country as a clear sign of stability and recovery for our sector. These developments enable us to execute our projects aimed at improving service quality, providing reliable water supply, and expanding our network coverage to more communities.”


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