Manila Water Co. Inc. saw a 6-percent rise in its net income which reached P6.5 billion in 2018, thanks partly to regulators’ approval of tariff hikes along with the company’s five-year business plan that runs up to 2022.
The Ayala group’s water service platform also noted its continued expansion through winning new contracts and firming up acquisitions.
In 2018, earnings before interest, tax, depreciation and amortization (Ebitda) went up 8 percent to P12.6 billion.
“In the Manila concession, we have forged a clear path to regulatory stability with the positive conclusion of the rate rebasing exercise,” Manila Water president and chief executive Ferdinand M. Dela Cruz said in a statement.
In September 2018, Metropolitan Water and Sewerage System approved a 90-centavo hike in Manila Water’s basic charge, which was implemented starting last October with an increase of P1.46 increase per cubic meter.
Further hikes would show in customers bills at P2 per cubic meter in 2020 and 2021 and up to P1.04 per cubic meter in 2022.
In 2018, Manila Water’s consolidated billed volume grew by 4 percent, breaching the 1 billion-cubic-meter mark.
“For our domestic operations, we remained true to our service commitments even under sudden market disruptions like the Boracay closure,” Dela Cruz said. “We are excited for the road ahead, as we follow through on our growth aspirations in Asean (Association of Southeast Asian Nations) and in other new markets.”
The company’s subsidiary, Manila Water Philippine Ventures (MWPV), secured 11 new projects last year, including joint ventures with local water districts in Pangasinan, Iloilo, and Isabela province.
Overseas, Manila Water made its biggest step so far toward regional expansion, with the acquisition of an 18.72-percent stake in East Water in Thailand.
Along with the acquisition of PT Sarana Tirta Ungaran in Indonesia, Manila Water raised its equity share in net income of associates by 53 percent in 2018.
Manila Water saw the contribution of its overseas subsidiaries to billed volume increase by more than twice to reach 575 million cubic meters.