Manila Water profit surges 14% in Q1 2025

INQUIRER FILE PHOTO

MANILA, Philippines — Manila Water Company Inc. recorded a 14-percent rise in earnings in the first quarter, driven by higher revenues.

In a disclosure on Friday, the Razon-led group said its net income in the period reached P3.56 billion. The bottom line was P3.12 billion a year ago.

Also, its top line jumped by 8 percent to P9.54 billion. Revenues were P8.81 billion in the same period last year.

Revenues from water and used water services alone reached P9.145 billion, up 11.7 percent from P8.18 billion.

Manila Water said the stronger revenues were driven by the 13-percent increase in average tariff it implemented starting January. This helped offset the 2-percent dip in billed volume.

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“This growth was further supported by the higher-billed volume in the non-East Zone Philippines and tariff hikes from Clark Water, Boracay Water and Estate Water,” it said.

Earnings before interest, taxes, depreciation and amortization also climbed by 12 percent to P6.92 billion from P6.18 billion.

The cost of services and expenses, meanwhile, rose by 2 percent to P2.77 billion from P2.71 billion.

Fluctuations

Last March, regulators gave their go signal for Manila Water to hike its rates by 4 centavos per cubic meter. This was for the second quarter and allows the company to recover losses due to currency fluctuations.

The foreign currency differential adjustment is a quarterly reviewed tariff mechanism. It allows the concessionaires of the Metropolitan Waterworks and Sewerage System to recover losses or give back gains following movements in the value of the peso against foreign currencies.

The water providers have to settle foreign currency-denominated loans that are used to finance expansion and enhancement involving their water and sewerage services.

Manila Water serves the East Zone network of Metro Manila. This covers Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong and San Juan; portions of Quezon City and Manila; and several towns in Rizal province.