PWSA enjoys banner 2020
STOCK-LISTED utility Phnom PenhWater Supply Authority (PWSA) reported strong growth and solid overall business performance last year despite economic disruptions caused by the Covid-19 pandemic.
In a full-year 2020 financial report filed to the Cambodia Securities Exchange (CSX) on March 2, PWSA said revenues amounted to 324,367,856,000 riel ($79.68 million), up 107,871,040,000 riel or 49.83 per cent from 2019.
Full-year “profit” came in at 88,351,845,000 riel, gaining 55,059,932,000 riel or 165.39 per cent year-on-year, the stateowned enterprise said without specifying which particular profit measure (gross, operating, net) it was referring to.
In the fourth quarter, PWSA netted86,884,128,000rielinrevenue, climbing 46,434,466,000 or 114.80 per cent compared to the third quarter, and raked in 18,785,810,000 riel in profit, soaring 24,818,244,000 riel or 411.41 per cent quarter-onquarter.
CSX vice-chairman Ha Jong-weon told The Post on March 2 that 2020 was a redletter year for PWSA with profits enjoying a significant 165 per cent year-on-year uptick even at a time when the world has been “humbled” by the pandemic.
He said: “If we look at the financial
statement and disclosure of PWSA, the increase in [the] company’s revenue and profit were mainly due to the implementation of new tariff[s] applied from the beginning of 2020 and the increase in construction service fee[s].
“We may see that the water supply business or utilities sector is somehow less impacted by the pandemic rather than other business, as water is necessary for daily life, so that water consumption from the people [not only didn’t remain] unchanged but [kept] increasing.”
Growth in the company will heighten confidence among investors and shareholders in making decisions in the stock
market, he asserted.
“I think the shareholders are very satisfied with the business performance, and new investors will be interested in putting the money in this type of growing business.
“As a stock exchange, we’re really delighted to see the companies listed on our board keep growing and we hope the CSX will become one of the trusted gateways for companies to raise more capital and [a source of] investment diversification for investors.
“We are very optimistic to see further growth in 2021 [as] the vaccine is starting to [be] rolled out to the public. [This will] lessen [the] impact of [the] pandemic,” Ha said.
PWSA on February 1 broke ground on the $380 million Bakheng Water Treatment Plant on the northeastern outskirts of the capital in response to rising demand, offering new investment growth potential for the company.
The construction of the plant will be carried out in two phases. The first is slated to be completed by the end of next year, with water production following soon after at 195,000 cubic metres per day.
Scheduled to be delivered by the end of 2023, the second phase will add another 195,000 cubic metres to the facility’s daily capacity for a total of 390,000.
AS MEMBERS of the oil cartel OPEC and its allies meet this week to discuss adjusting output, analysts expect old tensions between oil producer giants to flare up again. Russia and Saudi Arabia, respectively the world’s second and third largest producers of oil after the US, had often been at loggerheads in the past, but when crude oil prices plunged due to the pandemic, they rallied to radically cut production levels and underpin prices.
Now that prices have rebounded to pre-pandemic levels, at around $65 a barrel, the two heavyweights and their partners will discuss how to move forward – and how much crude to release back onto the global market.
“The priorities are well known – Russia wants to return to normal production as quickly as possible while Saudi Arabia wants to benefit from high prices a little longer,” Bjarne Schieldrop, chief analyst at commodities research group Seb, said ahead of a ministerial level meeting on March 4 at which quotas are expected to be adjusted.
While global demand for crude is recovering, OPEC has ensured that its production cuts create an “artificial shortage” that supports prices, according to Stephen Innes, chief global market strategist at broker group Axi.
Following two days of tough negotiations at 2021’s first summit in early January, the 23 members of the OPEC and OPEC+ groupings agreed to slowly increase oil supply to the world market.
For March, members have already agreed to withhold 7.05 million barrels per day (bpd), less than the 7.125 million bpd they cut last month.
With vaccination campaigns underway and demand in China, the world’s largest oil importer, back at pre-pandemic levels, exactly how much oil OPEC+ will allow to be traded for April will be at the heart of March 4’s ministerial-level debate.
Though the virus still poses a threat, it is likely “that the rise in oil prices will lead to a more rapid loosening of cuts”, than previously anticipated, analysts at Capital Economics say.
The quota of cuts expected to be observed by each country will be closely scrutinised by market watchers – as will any divergence between the main producers.
OPEC kingpin Saudi Arabia has in recent times been willing to take on extra production cuts to facilitate agreement.
Riyadh recently decided to reduce output by one million barrels per day, while Russia and Kazakhstan have slightly increased their crude production.
OPEC+ members have disagreed frequently in the past, with quotas expected to once again become a particularly contentious point of discussion this week.
Iran, Venezuela and Libya have been exempt from OPEC’s quotas, while others, including Iraq and Nigeria, have flouted the OPEC+ agreement, producing above quota for months.
OPEC members are also monitoring any signs that US President Joe Biden might lift sanctions on Iran, which would allow Tehran to re-enter the global market and dramatically increase supply.
On March 3, a day before the meeting sets new quotas, the club’s monthly meeting will assess current market conditions and threats in a videoconference.