Higher tariffs, strong water demand buoy MWC earnings
MANILA, Philippines — Razon Group-led Manila Water Co. Inc. posted a 37-percent growth in earnings to P3.1 billion in the three months ending March this year, driven by higher tariffs and increased demand.
In a disclosure on Tuesday, Manila Water said revenues had risen by 19 percent to P8.8 billion, which mostly came from providing water and used water services.
Manila Water derived 74 percent of its revenues from the sale of water while environmental, while sewer charges comprised the remaining 19 percent.
During the period, the listed firm recorded a 23-percent increase in average tariff as it implemented the second tranche of its rate rebasing adjustment in January this year.
READ: Manila Water exceeds new water service connection target in 2023
Rate rebasing is a performance review and general tariff adjustment conducted by Metropolitan Waterworks and Sewerage System every five years. It sets the maximum rates that water concessionaires may recover for their expenditures related to water and sewerage services.
“This was further supported by the continuous consumption recovery across all segments particularly in the commercial and industrial segments,” it said.
READ: Manila Water buys 70% of Laguna utility operator
Manila Water said its overall billed volume had gone up by 1 percent to 320 million cubic meters while the East Zone concession area alone registered a 4-percent billed volume growth.
“This growth was further supported by the 15 percent increase in Non-East Zone revenues due primarily to the tariff increases in several business units and higher sewer revenues, mainly from Laguna Water and Estate Water,” it said.
The total number of billed connections went up by 2 percent to 1.33 million, mostly from the East Zone coverage area. INQ
