Manila Wa­ter posts flat earn­ings

Business World - - Corporate News - Vic­tor V. Saulon

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. —

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