Manila Water profit sinks 24% as units falter

EAST ZONE water concessionaire Manila Water Co., Inc. posted a 24% fall in net income to P3.20 billion for the three quarters ending September due to lower contribution from its units amid the coronavirus disease 2019 (COVID-19) pandemic.

“Higher water revenue contribution from the East Zone Concession and Laguna Water was offset by lower revenues from other domestic subsidiaries and lower other operating income which decreased by 43% as a result of lower supervision fees from Estate Water,” the Ayala-led company said in a disclosure to the stock exchange on Tuesday.

Manila Water did not disclose a report on its financial performance for the third quarter alone.

For the January-September period, the company said its total operating revenues inched up 0.4% to P16.07 billion from the P16 billion it posted in the same period last year.

Up to 80% of Manila Water’s revenues came from water sales, while 16% were accounted for by environmental and sewer charges. The remaining 4% came from supervision fees, after-the-meter services, connection fees, and septic sludge disposal, among others.

Manila Water’s consolidated costs and expenses, excluding depreciation and amortization, fell 18% to P5.77 billion, due to lower overhead costs and weaker demand for septic and sludge disposal and repairs due to the pandemic.

The company’s consolidated earnings before interest, income taxes, depreciation, and amortization (EBITDA) dropped 2% to P9.36 billion.

Its subsidiary Manila Water Philippines Ventures incurred a net loss of P280 million after its operating units such as Estate Water and Boracay Water posted lower contributions.

Manila Water Asia Pacific, which has business interests in Vietnam, Thailand, and Indonesia, also posted a P422-million net loss due to additional expenses in its investment in Cu Chi Water Supply Sewerage Co., Ltd. in Vietnam.

Meanwhile, Manila Water Total Solutions reported a P66-million net loss, which included the performance of its pipe-laying services, integrated used water services, and packaged water sales under the Healthy Family Purified Water brand.

Earlier this month, Manila Water and west zone concessionaire Maynilad Water Services, Inc. deferred their annual water rate adjustment for next year in solidarity with their customers amid the pandemic.

On Tuesday, shares in Manila Water at the stock exchange rose 0.14% or P0.02 to close at P14.02 each. — Revin Mikhael D. Ochave

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