Manila Water 2022 net income up 59% to P5.9B

Steady customer demand and economic recovery boosted Manila Water Co. Inc.’s net income in 2022 to  P5.9 billion, up by about 59 percent from P3.7 billion in the previous year,  despite rising costs and expenses.

In a statement on Tuesday, the Razon-led firm cited a resurgence of its non-residential segments in the East Zone, as well as increased demand in several domestic non-East Zone businesses as the main growth drivers.

“The recognition of several key items such as the writeback of deferred forex losses and reduction of accounting provisions at the East Zone Concession further lent upward impact to net income for the year,” Manila Water said.

Net income in the East Zone Concession grew by 52 percent at P5.5 billion, while the company’s non-East Zone group saw a turnaround from a net loss position to earnings of P137 million at the end of 2022.

Consolidated revenue grew by 11 percent to P22.8 billion, on the back of commercial and industrial segment recovery in both East Zone and non-East Zone groups.

This increase in profit came a year after Manila Water suffered an 18-percent drop in consolidated earnings due to the economic impact of the COVID-19 pandemic, hampering both customer demand and business operations.

Capital expenditure, however, was at P22.4 billion due to the higher costs of repair and maintenance, as well as connection and collection activities, as the firm resumed projects that were postponed due to quarantine restrictions previously imposed.

Consolidated cost of services and expenses stood at P10.8 billion “with higher costs in nearly all categories.”

Net income from Manila Water’s non-East Zone-international businesses dropped by 52 percent to P152 million.

“The decline in income contribution from its East Water business offset the improved performance of the Vietnam businesses. The increase in costs and expenses for the period was driven mainly by higher management and professional fees as the company intensifies its new business development activities,” Manila Water noted in a statement.

In November 2022, the Metropolitan Waterworks and Sewerage System approved Manila Water’s request to implement higher rates on a staggered basis beginning 2023.

Rate rebasing in the East Zone will be implemented over the next five years to cover water supply and network improvement projects, as well as coverage and capacity expansion of the company’s wastewater system.