FOLLOWING its stock market debut, Maynilad Water Services, Inc. reported a 16% increase in third-quarter (Q3) net income to P3.9 billion, driven by higher revenues.
Revenues for the quarter rose 8.4% year on year to P9.30 billion, reflecting a tariff increase, according to the company’s financial report released on Thursday.
For the nine months ending September, net income rose 18% to P11.41 billion, driven by higher topline growth and a modest 2% increase in cash operating expenses, Maynilad said.
Total revenues improved 9.5% to P27.65 billion, primarily reflecting the 8% tariff adjustment implemented at the start of the year and an upward revision in the environmental charge.
“This was partly offset by a 1.1% decline in billed volume, following government restrictions on Philippine offshore gaming operators (POGO) and the transfer or closure of several large commercial accounts in the West Zone,” the company added.
As of end-September, Maynilad’s non-revenue water — water lost through leaks or illegal connections — dropped to 32.8% from 39.3% last year, due to intensified pipe replacement and leak-repair initiatives.
The utility continues to invest heavily in system upgrades and new water-treatment facilities under its 2023-2025 capital expenditure program, Maynilad said.
Key projects on the water-supply side include the 150-million-liter-per-day (MLD) Poblacion Water Treatment Plant in Muntinlupa and modular treatment plants in Cavite. Wastewater undertakings include the 20-MLD Tunasan and 46-MLD Cupang Water Reclamation Facilities in Muntinlupa, and the larger 205-MLD CAMANA and 180-MLD Manila North wastewater-treatment projects.
“We continue to meet our service commitments while investing in the infrastructure that will sustain long-term growth,” said Maynilad President and CEO Ramoncito S. Fernandez. “Our operational gains and disciplined execution show that our fundamentals remain sound, and that we are on track with our 2025 operational and financial objectives,” he added.
Maynilad raised P34.34 billion from its initial public offering, the second-largest in the Philippine Stock Exchange’s history, last week.
The company is an integrated primary provider of sustainable water and wastewater services for the West Zone, covering 11 cities in Metro Manila, three of which have partial coverage, as well as portions of Cavite province.
Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.
Maynilad shares shed 2.16% to close at P14.50. — Sheldeen Joy Talavera