Ayala-led Manila Water Co. managed to eke out a 4% rise in its first quarter earnings to P1.28 billion despite a tough business environment.
The growth was attributed to the resilient operations in its east zone concession on the back of continued supply and network management initiatives to ensure service availability as well as lower expenses.
Revenues increased by 10% as billed volume rose 2% due to the favorable raw water levels and the company’s consistent service performance.
Core net income, however, declined by 12 percent on lower contributions from domestic and international units.
Costs and expenses fell 30 percent to ₱1.3 billion despite the 15 percent increase in direct cost, largely due to the ₱534 million penalty imposed by the Metromanila Water Sewerage System with respect to the water supply shortage last year.
Manila Water Asia Pacific, which houses Manila Water’s international business operations, incurred a P193 million net loss, mainly driven by the recognition of additional expenses in relation to its investment in Cu Chi in Vietnam.
“As we face the unprecedented challenges posed by the COVID-19 pandemic, we should work even more closely with our partners and stakeholders so we can continue to provide reliable service. Only by working together can we find safer, more effective and innovative ways of serving our customers under this new normal,” said Rene Almendras, president and CEO of Manila Water.