Ricky Razon gets Manila Water back on track, H1 earnings up 10%
Business

Ricky Razon gets Manila Water back on track, H1 earnings up 10%

East zone concessionaire Manila Water bounced back to growth in the first half, reporting a 10 percent rise in profit to P2.73 billion on higher contributions from its international affiliates as well as foreign exchange gains.

The group, through Manila Water Asia Pacific (MWAP), has investments in Vietnam, Thailand, Indonesia and the Kingdom of Saudi Arabia.

MWAP saw its net income spike 170 percent to P223 million, largely due to the recognition of one-off expenses in March last year relating to its investment in Cu Chi Water.

Manila Water, which is now controlled by bilyonaryo Enrique K. Razon Jr., said lower tax rates owing to the Corporate Recovery and Tax Incentives (CREATE) Act also helped boost the company’s profitability.

The law reduced corporate income tax to 25 percent from 30 percent.

Operating revenues declined by six percent to P10.14 billion, driven by lower billed volume from the east zone concession as well as lower average tariff.

Manila Water derived 80 percent of its revenues from the sale of water, while 16 percent came from environmental and sewer charges.

The lower tax rates offset the total lower billed volume and average tariff rate across the enterprise.

Subsidiaries operating Boracay Water, Clark Water, Laguna Water and Estate Water trimmed its net loss by 55 percent to P94 million even as revenues dipped by four percent to P2.09 billion.

Billed volume increased by four percent to P53.9 billion.

 

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