Manila Water profit slips 5% to P12B

Manila Water Company Inc. reported a 5 percent decline in consolidated net income to P11.99 billion in the first nine months of the year, as surging financing costs and higher depreciation expenses weighed on earnings despite stronger revenues and operating performance.

In a stock exchange report on Tuesday, the water utility said net income fell from P12.67 billion in the same period last year, even as revenues climbed 11 percent to P33.40 billion from P30.05 billion.

The earnings decline coincided with a sharp increase in net interest expense, which more than doubled to P4.67 billion from P2.30 billion a year earlier.

Amortization and depreciation expenses also rose 26 percent to P4.92 billion from P3.91 billion, adding further pressure to the company’s bottom line.

Despite these costs, Manila Water maintained stronger operating performance, with earnings before interest, taxes, depreciation and amortization (EBITDA) rising 12 percent to P24.38 billion from P21.82 billion.

Its EBITDA margin remained steady at 73 percent, indicating that operating profitability held firm despite rising expenses.

The company also benefited from a 15 percent reduction in income tax provisions to P3.26 billion from P3.83 billion, partly cushioning the impact of higher financing costs.

Meanwhile, Manila Water recorded modest growth in water consumption and customer connections across its domestic and international operations.

Total attributable billed water volume increased 1 percent to 663.11 million cubic meters from 656.91 million cubic meters a year earlier.

Its East Zone concession accounted for 395.20 million cubic meters, while Manila Water Philippine Ventures contributed 98.65 million cubic meters.

International operations under Manila Water Asia Pacific recorded a 2 percent increase in billed volume to 169.26 million cubic meters.

Total billed connections likewise grew 2 percent to 1.43 million from 1.39 million, reflecting continued expansion of its customer base.

As of end-September, Manila Water’s consolidated assets stood at P309.11 billion, up 3 percent from P298.92 billion at the end of 2025, while total liabilities increased 3 percent to P210.60 billion.