Manila Water’s earnings dip on Covid impact

LISTED Manila Water Co. Inc. reported on Tuesday a reduced consolidated net income of P4.5 billion in 2020 as the yearlong coronavirus crisis dampened its business.

In a disclosure, the Ayalaled East Zone water concessionaire said the figure was an 18-percent drop from P5.5 billion the year before.

It blamed the decline on “lower contributions from domestic subsidiaries due to [the] impact of Covid-19 pandemic, as well as oneoff recognition of additional estimates for probable losses across the group.”

Consolidated revenues dipped by 2 percent yearon-year to P21.1 billion from P21.6 billion, driven by reduced contributions from units Estate Water and Boracay Island Water Co.

“The relatively flat revenue contribution from the East Zone concession was partially offset by lower revenues from other domestic subsidiaries and lower other operating income, which decreased by 46 percent, largely as a result of lower supervision fees from Estate Water,” Manila Water explained.

Eighty percent of operating revenues came from the water sales, while environmental and sewer charges accounted for 16 percent. Supervision fees, after-themeter services, connection fees and septic sludge disposal made up the rest.

Consolidated earnings before interest, income taxes, depreciation and amortization dropped by 6 percent to P11.94 billion. Consolidated costs and expenses, excluding depreciation and amortization, decreased by 13 percent to P8.3 billion.

Manila Water Philippine Ventures Inc. (MWPV), the firm’s vehicle for expansion within the Philippines, incurred a net loss of P480 million. Its revenues were at P4.2 billion.

Manila Water Asia Pacific Pte. Ltd. (MWAP), which houses Manila Water’s international ventures, saw its net income attributable to the parent sink by 316 percent, leading to a net loss of P371 million.

This was traced to additional expenses in relation to MWAP’s investments in Cu Chi Water Supply Sewerage Co. Ltd. Saigon Water Infrastructure Corp. and Eastern Water Resources Development and Management Public Co. Ltd.

In a separate disclosure, Manila Water announced that Aqua Centro MWPV Corp. (ACMC), a wholly owned subsidiary of MWPV, signed a P233-million term loan facility with the Bank of the Philippine Islands, the banking arm of the Ayala Group.

“The loan will be used to partially finance ACMC’s capital expenditure projects,” Manila Water said.

Manila Water shares inched up by 2 cenatovs or 0.13 percent to close at P15.38 each on Tuesday.

JORDEENE B. LAGARE