Manila Water registers flat earnings growth in the first half of 2020
Manila Water net income for the first half of 2020 was relatively flat, increasing 1 percent from the same period last year to ?2.48 billion. The lower contribution from domestic subsidiaries, coupled with recognition of additional estimates for various exposures across the group, weighed down on earnings.
Net income for the company’s East Zone concession stood at over ?3.04 billion for the period, the relative variance mainly due to the extraordinary expenses last year in line with the raw water shortage. Beyond the East Zone, Manila Water Philippine Ventures (MWPV) posted a net loss of ?208 million, driven largely by the increase in direct costs, as well as in personnel and overhead costs. Several of MWPV’s core subsidiaries experienced a notable decline, with businesses and commercial accounts being affected by the Enhanced Community Quarantine. Similarly, international business operations under Manila Water Asia Pacific (MWAP) yielded a net loss of ?320 million. The lower performance of associates Saigon Water and East Water hindered overall profitability.
Coming from the water supply challenges experienced in 2019, Manila Water strengthened its network management capability and fast-tracked water supply augmentation projects. These initiatives helped the company maintain water availability at near 100 percent for its customers, with water quality and pressure kept at regulatory levels. Even amid the challenges posed by the COVID-19 pandemic, Manila Water worked to maintain business operations while safeguarding the health and safety of employees and customers. Critical facilities remained operational 24/7 to ensure water availability, as business support and leak repair/maintenance works continued in response to customer concerns.
Manila Water President and CEO, Rene Almendras is appreciative of the employees’ efforts to provide reliable service to customers: “It’s been very challenging for us to work under the conditions posed by the COVID-19 pandemic, but we persevere because we know that we provide an important and basic service. In the end, we know that the solutions we develop to overcome these challenges, will help us serve our customers even better.”