Ayala water unit posts 17% profit growth
Manila Water Co. Inc. yesterday said its net income jumped 17 percent year-on-year in the first quarter this year to reach P1.69 billion as it saw growth across all its businesses.
The Ayala unit attributed the double-digit improvement to higher sales and the continued expansion of operating subsidiaries under Manila Water Philippine Ventures (MWPV).
“We are pleased with the results of our efforts early this year, as it is the result of the groundwork we have laid for future growth,” company president Ferdinand dela Cruz said in a statement.
“As we continue to build our business both domestically and in the region, we realize the importance of building a strong core, while remaining agile to adapt to various market conditions,” Dela Cruz said.
He said continuing infrastructure build-up resulted in a 63-percent growth in consolidated capital expenditures for the period, “as recent wins on new business development efforts begin to gain traction.”
Consolidated revenue grew 8 percent to P4.7 billion mainly due to higher water volume sold (billed volume) and higher supervision fees.
However, Manila Water said cost of services and operating expenses increased by 19 percent to P1.78 billion with business development costs adding to the total.
The concession with Metropolitan Waterworks and Sewerage System saw billed volume grow 10 percent to 120.3 million cubic meters as customers connections increased 3 percent to 968,409.
Manila Water’s domestic subsidiaries under MWPV contributed to a 23-percent growth in revenue to P876 million, but operating costs saw a 35-percent increase.
MWPV’s contribution to net income revved up 14 percent to P167 million.
As for overseas subsidiaries under Manila Water Asia Pacific (MWAP), these posted higher revenues along with additional contributions from new acquisitions — East Water in Thailand and PT Sarana Tirta Ungaran in Indonesia.
MWAP units saw operating expenses increase to P44 million, mainly due to interest expense for loans used to finance recent acquisitions.
Manila Water’s businesses abroad recorded a net income of P58 million.
