Tariff hikes boost Manila Water’s 2018 income
Credit to Author: ANNA LEAH E. GONZALES| Date: Tue, 26 Feb 2019 16:28:05 +0000
LISTED Manila Water Co. Inc.’s net income rose to P6.5 billion in 2018 on the back of higher tariff rates and market expansion.
In a disclosure, the Ayala-led water provider for eastern Metro Manila and Rizal province said the amount was a 6-percent increase from P6.1 billion in 2017, adding that the growth “was driven largely by the steady performance of [its] Manila concession, bolstered by the approval of its positive tariff adjustment and business plan.”
State-run Metropolitan Water and Sewerage System (MWSS) approved last year the water concessionaire’s rate hike, which is equivalent to P19.13 per cubic meter and will be implemented in tranches for five years: P1.46/cu.m. in October 2018, P2/cu.m. in January 2020; P2/cu.m. in January 2021; and between 76 centavos and P1.04/cu.m. in January 2022.
Manila Water’s consolidated revenues grew by 7 percent to P19.8 billion in 2018 from P18.5 billion the year before, while its earnings before interest, taxes, depreciation and amortization inched up by 8 percent to P12.6 billion from P11.6 billion in 2017.
Total billed volume last year reached 1.1 billion cu.m., a 43-percent increase from 2017’s 806.7 million cu.m.
The company’s Manila concession led the increase at 503.3 million cu.m., up by 3 percent from 488.4 million cu.m. two years ago. Its recent stake acquisitions in
Thailand’s East Water and Indonesia’s PT Sarana Tirta Ungaran also contributed to the 2018 volume.
It, however, reported a reduction in billed volume for subsidiaries Laguna Water, Boracay Water and Cebu Water. Its Vietnamese units Thu Duc Water and Kenh Dong
Water also reported similar decreases last year.
The firm also registered a 3-percent increase in total billed connections, which reached 1.10 million from 1.07 million in 2017.
Manila Water President and Chief Executive Officer Ferdinand dela Cruz said he was encouraged by the company’s “resilient performance” last year, as it served to further strengthen its growth platform.
“I see our 2018 performance as a testament to our resolve, as we surmounted significant challenges to come out stronger,” dela Cruz said.
“In the Manila concession, we have forged a clear path to regulatory stability with the positive conclusion of the rate-rebasing exercise. For our domestic operations, we remained true to our service commitments even under sudden market disruptions, like” the closure of Boracay island to tourists for a six-month environmental rehabilitation.
“We are excited for the road ahead, as we follow through on our growth aspirations in [Southeast Asia] and in other new markets,” he added.
Manila Water shares dipped by 45 centavos or 1.65 percent to close at P26.85 apiece on Tuesday.
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