Manila Water’s income up by 17% to P1.69B
Manila Water Company, Inc. said it registered a strong performance for the first quarter of 2018, posting double-digit net income growth of 17 percent from the previous year to reach P1.69 billion.
“This robust growth is supported mainly by the Manila Concession, coupled with the continued expansion of operating subsidiaries under Manila Water Philippine Ventures (MWPV,” the company said in a disclosure to the local bourse.
“Continuing infrastructure build-up resulted in a 63 percent growth in consolidated capital expenditures for the period, as recent wins on new business development efforts begin to gain traction,” it added.
On a consolidated level, Manila Water posted healthy topline growth for the period, growing 8 percent from the previous year mainly due to higher water volume sold (billed volume) and higher supervision fees.
Its other income grew by 69 percent to P153 million, largely driven by the higher equity stake in net income of associates.
Income contribution of international subsidiaries increased by 26 percent from the previous year, with the new acquisitions in Thailand and Indonesia already making respective contributions. On the other hand, cost of services and operating expenses increased by 19 percent to P1.78 billion, as business development costs for the implementation of Manila Water’s growth strategy contributed to the increase. Direct costs went up due to higher repairs and maintenance expenses.
Manila Concession billed volume also grew by four percent, driven by an increase in billed connections to total nearly 970,000, as well as a noted uptake in per capita consumption.
Average tariff likewise increased to P30.30 per cubic meter, following the implementation of the 2.8 percent CPI adjustment effective January of this year. Capital expenditures growth continued for the period, reaching P2.9 billion – an 81 percent increase from the same period last year.