Manila Water Co. Inc. saw its net income for the first quarter fall by 27 percent year-on-year to P1.23 billion, mainly due to the water supply shortage in its main business, its Metro Manila concession.
For the January-March period, revenues grew 8 percent to P5.1 billion thanks to the tariff increase that the Metropolitan Waterworks and Sewerage System’s (MWSS) Regulatory Office approved for the current five-year period that started last year.
Manila Water’s businesses outside Metro Manila—which showed multiple contract wins in 2018—also contributed to growth in revenues, the company said in a statement.
“However, this growth was partially offset by the voluntary, one-time bill waiver program to help alleviate the inconvenience of all customers and to those severely affected by the water shortage in the Manila concession,” the firm added.
Manila Water president Ferdinand dela Cruz earlier said the bill waiver was estimated to shave off some P500 million in company revenues.
Further, Manila Water’s operating expenses surged 39 percent to P2.5 billion, partly due to the a P534-million fine that the MWSS imposed on the company for failing to meet its service obligation.
The concession agreement with MWSS provides for the imposition of fines if Manila Water failed to provide its customers continuous water supply for more than 60 days or 15 days if such failure adversely affected public health or welfare.
“Excluding the effects of the water supply shortage in the Manila concession, core net income grew 22 percent to P2.1 billion,” the company said.
Manila Water said that as of May 8, it had ensured water for at least eight hours at a pressure of 7 pounds per square inch, at ground-floor level, to 98 percent of its customer base.
Also, 72 percent of its concession area now has 24-hour 7 psi.
Domestic business beyond the concession with MWSS saw a 7-percent growth to P174 million while Manila Water’s overseas business—including those in Indonesia, Vietnam and Thailand—chalked up more than twice the earnings with P135 million.