Manila Water posted ₱6.9 billion in net income for the first half of 2024. Tariff adjustments for its East Zone Concession and several of its Non-East Zone Philippines (NEZ PH) businesses provided solid topline support to the continued growth in customer demand.

On a consolidated level, revenues grew by 19% to ₱18.4 billion. The implementation of approved tariff adjustments in the East Zone and in several domestic subsidiaries were further supported by 2% consolidated growth in billed volume. On the other hand, cost of services and expenses for the period was up by 4% at ₱5.9 billion. This was largely driven by the continued addition of new facilities in line with service improvement and expansion. Consequently, consolidated EBITDA improved by 26% to ₱12.7 billion, with EBITDA margin moving up 3 percentage points to 69%. Net income margin further strengthened by 5 percentage points to 38%.

At Manila Water’s East Zone Concession, revenues were up by 20% to reach ₱14.5 billion for the period. The second tranche of the Rate Rebasing tariff adjustment early this year was supported by billed volume growth coming from sustained recovery of economic activity. Meanwhile, cost and expenses increased by 9% to ₱4.0 billion due to costs in line with the addition of new facilities, as well as repairs and maintenance costs. In all, the East Zone Concession posted net income of ₱6.0 billion for the period, growing by 31% from last year.

Beyond the East Zone Concession, NEZ PH posted strong earnings to more than double its net income to ₱4.3 billion for the period. The higher contributions from its Laguna Water and Estate Water businesses were further supported by tariff adjustments in several of its other subsidiaries, namely Clark Water and Boracay Island Water, among others. This strong topline performance improved EBITDA by 39% to ₱2.2 billion, with EBITDA margin climbing 6 ppts to 52%. For Manila Water’s overseas businesses, net income of associates was largely affected by the decline in performance of its investment in Thailand.

Manila Water continued its implementation of various water and wastewater projects to ensure prudent compliance with regulatory and service commitments. Group CAPEX reached ₱10.1 billion for the first half of the year, with the East Zone Concession accounting for 92% of total CAPEX for the period at ₱9.3 billion.

Manila Water President and CEO, Jocot de Dios, is encouraged by the continued recovery and growth of the business: “Our performance results are a clear indication of the resurgence in economic activity being experienced in the different areas we operate. Against this backdrop of potential growth opportunities, both in the communities we currently serve, and in the markets which we look to enter, it becomes even more important that we are efficient in our operations and effective in our project execution. I am confident that we in Manila Water will be up for these exciting challenges ahead.”