Manila Water records P4.5-B attributable net income

EAST ZONE water concessionaire Manila Water Co., Inc. registered an 18.2% fall in net income attributable to equity holders to P4.50 billion for 2020, it said in a disclosure to the stock exchange on Tuesday.

The water provider said the decline was due to lower contribution from its domestic subsidiaries as a result of the coronavirus disease 2019 (COVID -19) pandemic.

Manila Water’s consolidated operating revenues last year fell 2.4% to P21.13 billion as its domestic subsidiaries Estate Water and Boracay Water had lower contributions.

“The group derived 80% of its operating revenues from the sale of water, while 16% came from environmental and sewer charges. Other revenues, which accounted for the balance, are comprised of supervision fees, after-the-meter services, connection fees and septic sludge disposal, among others,” the disclosure said.

Manila Water said its consolidated costs and expenses for 2020 fell 13.2% to P8.34 billion, versus P9.61 billion the earlier year as all of its expense accounts had posted a decline compared to the earlier year.

The company added that lower costs and expenses were because of fewer septic sludge disposal and repairs due to suspension of activities as part of lockdown protocols.

“Notable is the 25% decline in overhead costs, which was largely due to the one-off expenses in 2019 such as the P534 million in relation to the penalty imposed by the Metropolitan Waterworks and Sewerage System (MWSS) and additional expenses which arose in the ordinary course of business,” the disclosure said.

Earnings of the company before interest, taxes, depreciation, and amortization (EBITDA) for 2020 fell 5.7% to P11.94 billion compared to P12.66 billion in 2019.

Meanwhile, Manila Water’s subsidiary Manila Water Philippines Ventures, Inc. (MWPV) posted a net loss of P480 million, a turnaround from the P450 million net income it had in 2019.

MWPV’s consolidated revenues declined 10% to P4.22 billion in 2020 against P4.69 billion in 2019.

Another subsidiary of Manila Water, Manila Water Asia Pacific Pte. Ltd. (MWAP), posted a net loss of P371 million for 2020, reversing the P172-million net income it had the previous year due to the recognition of additional expenses in Cu Chi, Saigon Water, and East Water.

Manila Water Total Solutions (MWTS) recorded a net loss of P109 million for 2020, an improvement from the P165million net loss it had in 2019.

In a separate regulatory filing on Tuesday, Manila Water announced that Aqua Centro MWPV Corp. (ACMC) signed a P233-million term loan facility with the Bank of the Philippine Islands.

The disclosure said the term loan will be used to fund ACMC’s capital expenditure projects. ACMC is a wholly owned subsidiary of MWPV.

On Tuesday, shares in Manila Water at the stock exchange rose 0.13% or two centavos to close at P15.38 apiece. —