MANILA Water Co., Inc. recorded a 10% increase in its attributable net income for the first half to P2.73 billion on the back of stronger contribution from its international affiliates.
The listed water concessionaire said in a stock exchange disclosure on Tuesday that its consolidated revenues during the first six months of the year fell 6% to P10.14 billion due to lower billed volume from the east zone concession and lower average tariff for its concession area and domestic subsidiaries in Manila Water Philippines Ventures, Inc. (MWPV).
“The group derived 80% of its operating revenues from the sale of water, while 16% came from environmental and sewer charges. Other revenues accounted for the balance, which are comprised of supervision fees, after-the-meter services, connection fees and septic sludge disposal, among others,” Manila Water said in the disclosure.
Consolidated costs and expenses climbed 7% to P4.12 billion from P3.84 billion while its earnings before interest, income taxes, depreciation, and amortization (EBITDA) was flat at P6.54 billion.
According to the disclosure, the net income of the parent company fell 14% to P2.61 billion from P3.04 billion.
“This was driven primarily by the decrease in revenues due to lower billed volume from commercial and industrial segments, coupled with higher operating costs and expenses and depreciation,” Manila Water said.
Billed volume dropped 4% to 245 million cubic meters in the first half due to lower consumption across all segments amid the coronavirus disease 2019 (COVID-19) pandemic.
“This led to a decline in average consumption per connection by 6% from 42.6 cubic meters to 40.0 cubic meters. Average tariff per cubic meter declined by nearly P1 to P32 in the first half of 2021 from P33 in the same period last year. In turn, these developments led to a 7% decrease in revenues to P8.15 billion in the first half of 2021,” the company said.
Meanwhile, MWPV recorded a P94-million net loss for the period, an improvement from the P208-million net loss it had in 2020 due to the one-time P199-million recognition of discontinued operations of Zamboanga Water last year and increased contributions from Laguna Water and Clark Water.
“On a consolidated MWPV level, revenues declined 4% to P2.1 billion. This was mainly due to the 4% decrease in water and sewer revenues, even as supervision fees showed a slight recovery with a 1% increase. The lower water and wastewater revenues for the period were mostly on account of the 63% decline in revenues noted in Boracay Water driven by the 75% decline in tourist arrivals brought about by COVID-19 pandemic restrictions,” the company said.
Net income of Manila Water Asia Pacific Pte. Ltd. (MWAP), which consisted of contributions from associates in Vietnam, Thailand, Indonesia, and Kingdom of Saudi Arabia (KSA), posted a 170% increase to P223 million.
“This was mainly due to the recognition of one-off expenses in March 2020 in relation to MWAP’s P336-million investment in Cu Chi Water,” the company said.
“On the other hand, cost and expenses increased 14% to P43 million as a result of business development activities in KSA and higher management and consultancy fees. These developments led to an EBITDA of P290 million, 216% higher than the same period last year,” it added.
On Tuesday, shares of Manila Water at the stock exchange went down 0.77% or 14 centavos to end at P18.10 each. — Revin Mikhael D. Ochave