Manila Water posts flat earnings

MANILA Water Co., Inc. reported a 1% increase in net income as of September this year to P4.93 billion from P4.89 billion in the same period last year, the Ayala-led company told the stock exchange on Wednesday.

The growth during the nine-month period comes after the company recorded a 7% increase in revenues to P14.43 billion, and a 45% growth in other income to P944 million.

Manila Water’s other income include its equity share in the net income of associates at P515 million, up nearly 83% from P282 million previously.

The company did not report its separate figures for the third quarter.

Manila Water, which holds the water concession in greater Manila’s eastern side, registered a cost of sales and operating expenses of P5.94 billion, 21% higher compared with the previous year’s P4.90 billion.

Earnings before interest, tax, depreciation and amortization (EBITDA) reached P9.43 billion, up 3% from P9.19 billion. This translates to an EBITDA margin of 65% as against 68% in the previous year.

Manila Water’s report comes after it disclosed last month new projects, including the construction of a water supply system in San Fabian town in Pangasinan province following the grant of a franchise by municipal officials.

The project, which will be undertaken by subsidiary Manila Water Philippine Ventures, Inc., will have a capital expenditure of around P742 million. It is expected to be operational by 2019.

The franchise follows Manila Water’s announcement that the same unit received the notice of award from the Tanauan Water District for the implementation of a joint venture project for the design, improvement, upgrade, rehabilitation and expansion of the town’s water supply and sanitation facilities.

On Wednesday, shares in Manila Water slipped 0.19% to close at P25.80 each. —