Manila Water core income up 3-fourths to P9.6 billion

MANILA, Philippines — Manila Water Co. Inc. said its core income in 2023 expanded by three-fourths year-on-year to P9.6 billion on the back of higher consumer demand driven by better economic conditions.

Consolidated net income, meanwhile, amounted to P5.6 billion last year from P5.9 billion in 2022, with net income margin settling at 18 percent.

Consolidated revenues rose by 35 percent on an annual basis to P31 billion.

“This growth was supported by the recovery of the East Zone’s commercial and industrial accounts, as well as by the 20 percent increase in revenues from Manila Water’s Non-East Zone Philippines businesses,” Manila Water said in a statement, while adding that its core net income margin improved to 31 percent.

Manila Water added that it was able to keep its costs at P10.8 billion after making operations more efficient.

“We continue to be encouraged by the recovery of our business and efficiencies from our cost management initiatives,” said Jocot de Dios, Manila Water president and CEO.

Net income from the East Zone concession business alone expanded by 60 percent to P8.8 billion due to “higher revenues and effective cost management.”

Manila Water said its revenues in the East Zone concession grew by 41 percent year-on-year to P24.1 billion because of the rate rebasing tariff in early last year. The company also noted that increased consumption across all its customer segments contributed to the higher revenues.

“Meanwhile, cost increases in line with higher production volume and completion of new facilities were offset by non-recurring costs recognized in 2022,” it said.

“Favorable efficiencies in direct and overhead costs with the implementation of cost efficiency initiatives further helped keep costs steady at P7.2 billion,” it added.

Earnings beyond the East Zone concession stood at P750 million on the back of higher billed volume and tariff adjustments.

Meanwhile, the company said it incurred a P3.9-billion net loss from the operations of its Manila Water International.

“For Manila Water’s international operations, the positive performance of its Vietnam bulk water businesses and operations in the Kingdom of Saudi Arabia were offset by higher interest expenses and the impairment recognized for East Water,” the company said.