Maynilad sees 2-digit growth in sales, profit

Maynilad Water Services Inc. hopes to reach its target of double-digit increases in sales and profit as it expands its business and brings down water losses, company president and CEO Victorico P. Vargas said at the sidelines of the Water Loss 2012 conference.

Maynilad is eyeing a 20-percent rise in revenue to about P15 billion in 2012, and a 10-percent increase in income to about P6.6 billion, Vargas told reporters.

He said the company also sought to bring down non-revenue water to about 40 percent from the 42 percent reported by end-2011.

Vargas earlier said that Maynilad was working to attain 92 percent water coverage, 96 percent availability of 24/7 service, and minimum water pressure of 7 psi throughout its network this year.

Maynilad has set aside up to P9 billion for capital expenditure in 2012, Vargas said. It will fund work on sewerage and sanitation services, as well as system upgrades that will help grow its business.

The water services provider is sourcing its capex from corporate loans and internally generated funds.

Some P2.7 billion will go toward boosting Maynilad’s sewerage and sanitation drive, while P1.9 billion will be used to upgrade key facilities, including its pumping stations, water reservoirs and primary lines.

More than P1.6 billion will be spent to lay new pipelines in unserved areas and nearly P1.8 billion will be used for the company’s aggressive Non-Revenue Water reduction program.

Maynilad is run by Metro Pacific Investments Corp. and DMCI Holdings Inc., which entered into an agreement with the Metropolitan Waterworks and Sewerage System in 2007.—Riza T. Olchondra