Manila Water Q1 earnings fall 27% on water shortage

Manila Water Company Inc. on Thursday reported a 27% drop in its earnings for the first quarter of the year, weighed down by the water supply shortage in Metro Manila.

In a regulatory filing submitted by Senior Legal Counsel Gerardo II Lobo, Manila Water said its net income fell to P1.233 billion in the first quarter from the P1.689 billion the comparable period last year.

"The slowdown was mainly due to the impact of the water supply shortage in its Manila Concession business," the filing read.

Revenues rose 8% to P5.079 billion from P4.712 billion last year, while operating expenses increased by 39% to P2.461 billion from P1.776 billion.

"(G)rowth was partially offset by the voluntary, one-time Bill Waiver Program to help alleviate the inconvenience of all customers and to those severely affected by the water shortage in the Manila Concession," said Manila Water.

Manila Water in March said that scheduled water interruptions will go on throughout the entire summer, citing the low water levels in dams.

The Ayala-led company in the same month announced it would implement a one-time bill waiver scheme covering customers affected by the recent water service interruptions.

Ferdinand dela Cruz, Manila Water president and CEO, earlier apologized for the recent water supply issues experienced by the customers of the company, as the La Mesa Reserve breached its critical level of 69 meters which prevented the company from meeting the demand of 150 million liters per day from the reservoir.

The Zobel de Ayala brothers, Manila Water chairman Fernando Zobel de Ayala and vice chairman Jaime Augusto Zobel de Ayala, also took responsibility for the water interruptions.

On Wednesday, Manila Water said customers should expect service interruptions to persist until La Mesa Dam's water supply returns to its normal level of 75 meters. — RSJ, GMA News