Making Waves: Manila Water's Splashing Success in 2024

COURTESY: Manila Water

Manila Water has been making quite the splash in 2024, posting a net income of ₱10.1 billion for the first nine months—a whopping 39% increase from the same period last year! This financial surge is not just a stroke of luck but a result of strategic tariff adjustments in its East Zone Concession and several Non-East Zone Philippines (NEZ PH) businesses. These adjustments have provided robust topline support, fueling the increasing customer demand.

Diving deeper into the numbers, Manila Water's consolidated revenues grew by 19% to reach ₱27.5 billion. This impressive growth was buoyed by the implementation of approved tariff adjustments and a stable 3% growth in billed volume. Meanwhile, the cost of services and expenses nudged up by a modest 4%, hitting ₱8.8 billion. This rise aligns with the company’s ongoing efforts to enhance service and expand its facilities. With revenues outpacing costs, the company's consolidated EBITDA surged by 26% to ₱19.2 billion, improving the EBITDA margin by 4 percentage points to a stellar 70%.

In the East Zone Concession, Manila Water has been riding high on a wave of success. Revenues for this segment soared by 20%, reaching a remarkable ₱21.8 billion. This growth was largely driven by the second tranche of the Rate Rebasing tariff adjustment and the recovery of economic activity in industrial segment customers. The company’s ability to adapt and leverage these opportunities has been instrumental in this financial upswing.

Even though costs and expenses increased by 6% to ₱6.1 billion, largely due to direct and premises costs associated with new facilities, the East Zone Concession managed to post a net income of ₱9.3 billion. This marks a significant 45% growth from the previous year, showcasing Manila Water's adeptness at balancing growth with operational efficiency.

Beyond the East Zone, Manila Water's Non-East Zone Philippines (NEZ PH) businesses have also been making waves. Contributions from Laguna, Clark, Boracay, and Estate Water businesses helped push revenues up by 23% to ₱6.5 billion. A 6% total growth in billed volume further buoyed this segment, leading to a 36% improvement in EBITDA, which reached ₱3.2 billion.

The EBITDA margin also saw a boost, improving by 5 percentage points to 49%. Consequently, NEZ PH posted a net income of ₱908 million, an impressive 89% increase compared to last year. This solid performance highlights the strategic importance of diversifying revenue streams and enhancing operational efficiencies across different regions.

While Manila Water's domestic operations are sailing smoothly, its international endeavors have faced some choppy waters. Manila Water International ended the period with a net loss of ₱19.0 million, primarily due to lower revenues and higher raw water costs in Thailand, as well as increased operational expenses in Vietnam.

Nevertheless, Manila Water remains undeterred. The company has intensified its efforts to implement both water and wastewater projects to meet regulatory and service commitments. With a group CAPEX reaching ₱16.7 billion as of September, the company is poised to continue its expansion and service improvement initiatives.

Manila Water President and CEO, Jocot de Dios, expressed optimism about the future, stating, “When we set out on our path to recovery and growth three years ago, we knew fully well that the road ahead would not be easy. We understood that sacrifices would need to be made at the onset, so that we can establish a robust structure and adopt practices that will result in sustainable efficiencies in our operations, better, more reliable service to our customers, and a more disciplined view of how we pursue growth. I am happy to see that our hard work is now paying off, and even more excited to see what lies ahead.”

In conclusion, Manila Water's remarkable financial performance in 2024 underscores the strength of its strategic initiatives and its commitment to growth and service excellence. As the company continues to navigate both opportunities and challenges, one thing is clear: Manila Water is making waves, and its future looks bright.

A Royal Rendezvous: Manila Water's Eco Adventure with UK Delegation

COURTESY: Manila Water

Imagine a sunny day at La Mesa Ecopark, the vibrant greens of the trees contrasting beautifully with the azure sky above. This picturesque setting was the backdrop for an incredible meeting between Manila Water President and CEO, Jocot de Dios, and some very distinguished guests. Among them were the UK Foreign, Commonwealth, and Development Office Minister for the Indo-Pacific, Catherine West MP, and His Majesty’s Ambassador to the Philippines, Laure Beaufils. This wasn't just a casual meet-and-greet; it was a significant exchange of ideas and visions for a sustainable future.

De Dios, with his team from the Manila Water Foundation and the management of La Mesa Ecopark, rolled out the green carpet for their esteemed visitors. The guided tour around the park and the La Mesa Reservoir was not only a showcase of natural beauty but also a testament to the environmental efforts Manila Water is committed to. As they strolled through the lush pathways, one could almost feel the synergy in the air—a shared commitment to preserving our planet.

During a brief, yet impactful exchange, Jocot de Dios emphasized that environmental protection and sustainability are not just buzzwords for Manila Water; they are woven into the very fabric of the company’s operations. This commitment is evident in the way they approach every project, ensuring that sustainability is a core principle.

Ambassador Beaufils echoed this sentiment, highlighting the importance of partnerships across various sectors to drive change and accelerate climate action. Her words resonated deeply with everyone present, underscoring the power of collaboration. Minister West added another layer to this dialogue, expressing the UK government's keen interest in linking technologies and innovations for climate change mitigation. It was a meeting of minds that promised a brighter, more sustainable future.

As the tour continued through the stunning landscapes of La Mesa Ecopark, it became clear that this wasn't just a visit—it was an exploration of possibilities. The park, a haven of biodiversity, serves as a living laboratory for sustainability. Each step taken by the delegation was a reminder of the delicate balance between human progress and environmental stewardship.

The Manila Water Foundation has long been a champion of sustainability, and their efforts in the Ecopark are a shining example of this commitment. Through various initiatives, they have worked tirelessly to ensure that the environmental legacy of La Mesa is preserved for future generations. The visit from the UK delegation only served to reinforce the importance of these efforts and the critical role they play in the global fight against climate change.

As the day drew to a close, there was a palpable sense of optimism in the air. The Manila Water Foundation was grateful for the visit from Minister West and Ambassador Beaufils, seeing it as a powerful validation of their work. More than just a ceremonial occasion, this meeting was a stepping stone towards deeper collaboration and shared endeavors.

The conversations held amidst the natural beauty of La Mesa Ecopark were more than just words; they were a promise of action. With the support of international partners like the UK, Manila Water is poised to make significant strides in environmental protection and sustainability. This visit was a testament to the power of collaboration and the shared responsibility we all have in caring for our planet.

In conclusion, this royal rendezvous was more than just an exchange of pleasantries. It was a meaningful dialogue between nations and organizations committed to a sustainable future. As we look ahead, the partnership between Manila Water and their international allies promises to inspire and lead the way towards a greener, more sustainable world.

Prime Infra Strengthens Commitment to Manila Water Expansion with Ayala Stake Acquisition

COURTESY: Prime Infrastructure Capital Inc.

Prime Infrastructure Capital Inc. (Prime Infra), led by Enrique K. Razon Jr., has made a significant move to bolster its influence and commitment to Manila Water Company, Inc. with its recent acquisition of Ayala Corporation’s remaining stake. This strategic acquisition underscores Prime Infra's dedication to strengthening the growth and expansion trajectory of the Philippines’ leading water utility firm. The move is poised to enhance the operational and developmental capabilities of Manila Water, both domestically and internationally.

Prime Infra's Chairman, Enrique K. Razon Jr., expressed his optimism about the acquisition, stating, "Manila Water continues to deliver reliable and efficient water and wastewater services to communities in key metros in the Philippines and abroad. We look forward to the company’s future as we continue optimizing the business and expanding both our domestic and international operations." This acquisition not only solidifies Prime Infra's market leadership but also aligns with its broader strategy of leveraging intra-group synergies to capture emerging opportunities.

Manila Water will significantly benefit from Prime Infra’s extensive expertise and proven track record in business development, project delivery, and the operation of long-term assets in highly regulated industries and complex geographies. By integrating Prime Infra's strategic approach, Manila Water aims to further enhance its service delivery and operational efficiency.

Guillaume Lucci, President and CEO of Prime Infra, emphasized the strategic importance of the move, stating, "The development solidifies Prime Infra’s market leadership in the water sector, driven not only by the performance and potential of Manila Water at home and abroad, but also by its synergy with our other majority-controlled bulk water subsidiary WawaJVCo Inc." This synergy is expected to drive substantial improvements in infrastructure and service delivery, thereby reinforcing Manila Water's position as a leading water utility firm.

The acquisition also highlights the synergy between Manila Water and WawaJVCo Inc., another key entity under Prime Infra’s control. WawaJVCo is currently operating Phase 1 of the Wawa Bulk Water Supply Project and is in the process of developing the significantly larger Phase 2 Upper Wawa Dam, which has the capacity to deliver 710 million liters per day (MLD) of raw water. This collaboration is set to enhance water supply capabilities and ensure sustainable water resources for the regions served.

By aligning the operations of Manila Water and WawaJVCo, Prime Infra aims to create a more resilient and efficient water supply network. This integrated approach is expected to drive significant improvements in water distribution and management, benefiting communities and industries alike.

The acquisition of Ayala’s remaining stake will result in Trident Water, a Prime Infra unit, holding an 81.9% voting stake and a 62.2% economic interest in Manila Water, with the remainder to vest upon completion of payments. This strategic consolidation of control is expected to facilitate more streamlined decision-making and accelerate the implementation of growth initiatives.

With Prime Infra's robust strategic vision and operational expertise, Manila Water is well-positioned to embark on an ambitious expansion journey. The company plans to leverage Prime Infra's resources and capabilities to explore new markets and enhance its service portfolio, thereby driving sustainable growth and delivering greater value to its stakeholders.

In conclusion, Prime Infra's acquisition of Ayala’s remaining stake in Manila Water marks a significant milestone in the company's growth trajectory. By reinforcing its commitment to Manila Water's expansion, Prime Infra is set to drive substantial improvements in water utility services, both in the Philippines and abroad. This strategic move not only strengthens Prime Infra's market leadership but also underscores its dedication to delivering reliable and efficient water services to communities worldwide.

Manila Water: A Beacon of Excellence in Water Security

Photo Credit: Manila Water

Manila Water, a juggernaut in the global water industry, has made a significant stride in its commitment to environmental stewardship and water security. The company earned its maiden A- score in water security from the esteemed environmental charity, CDP. This milestone highlights Manila Water's unwavering dedication to ensuring water security for the communities it serves.

Manila Water's A- score places it well above the Asia regional average of C. It also outperforms the non-energy utilities sector average of B, illustrating the company's exceptional commitment to water security.

The A- score is a testament to Manila Water's relentless pursuit of environmental sustainability and water security. It underscores the company's ongoing efforts to implement best practices and contribute positively to the communities it serves.

Manila Water is the lone Philippine-based company to achieve a leadership score for Water Security. It is part of the select 38% of non-energy utility companies that reached the Leadership level in CDP's water security assessment.

CDP is a non-profit that runs a global disclosure system for managing environmental impacts. Manila Water's elevation to the Leadership band reflects its exemplary practices in environmental reporting, water accounting, risk assessment, and seizing water-related opportunities.

In addition to its remarkable achievement in water security, Manila Water also maintained its management level score, earning a B Rating for climate change. This highlights the company's holistic approach towards sustainability and commitment to mitigating environmental risks.

Manila Water continues to lead by example in corporate transparency and environmental performance. It reaffirms its commitment to driving positive change and building a more sustainable future for generations to come.

As Manila Water continues to push the boundaries of excellence in water security, it remains inspired to do even better for its customers and stakeholders. The company is committed to facing the challenges of water security head-on, setting the bar high in terms of global practices.

Manila Water's impressive A- score is a shining example of its unwavering dedication to water security. It serves as a beacon, illuminating the path for other companies in the industry to follow.

Manila Water's accomplishment is more than just a high score. It signifies the company's commitment to a future where water security is a reality for all. Their leadership in this arena is driving positive change and paving the way for a more sustainable future.

Manila Water sets a high benchmark in water security with an A- score from CDP, surpassing regional and sector averages. This achievement showcases their commitment to environmental sustainability, transparency, and a more secure, sustainable future.

Estate Water: Eight Years of Exceptional Water and Wastewater Services - A Milestone Journey

Photo Credit: Manila Water

In 2015, a new venture was born under Manila Water Philippine Ventures. Estate Water emerged as an exclusive provider of water and wastewater services for Ayala Land properties and other developments in and out of Manila Water’s service area. The year 2016 marked its formal inception, and since then, it has been a shining beacon in the water service industry.

Estate Water’s footprint has grown significantly over the years. It now caters to a diverse range of establishments including industrial estates, residential properties, hotels, offices, mixed-use type, and large-scale township projects. The company's reach extends across 45 cities and municipalities and 17 provinces throughout the country, serving a staggering total of 169,533 customers as of December 2023.

Estate Water has been instrumental in the construction, development, improvement, management, and operation of water and wastewater systems in numerous high-profile projects. Some of these include the UP Technohub in Quezon City, Nuvali in Laguna, Alviera Estate in Pampanga, and Cebu IT Park in Cebu. 

Estate Water's success is also attributed to strategic partnerships with significant entities. In Cavite Special Economic Zone, it partnered with the Philippine Economic Zone Authority. Similarly, in Anflo Industrial Estates in Davao del Norte, it collaborated with Damosa Land. The company has also undertaken several projects with the renowned SM Group.

Estate Water's family includes three other business units: Aqua Centro, Eco Water, and Bulacan Aqua Estates. Each serves a unique segment of the property development market, ensuring comprehensive water and wastewater services.

 

Aqua Centro was established to cater to real estate and property developments with a model that embraces a sustainable life cycle approach. This approach spans planning, designing, financing and implementation, and operation and maintenance of water and wastewater systems.

Eco Water was created to serve private locators and properties managed by PEZA. This unit aligns perfectly with Estate Water's ethos of providing world-class services to a wide range of clients.

Bulacan Aqua Estates is the chosen water provider of several property developers in the province of Bulacan. Its portfolio includes Grand Royale, Royale Estates 1 and 2, Woodlands of Grand Royale, Dream Crest Homes, Casa Royale, Casa Buena de Pulilan, San Vicente Homes, and Las Palmas Subdivision.

Apart from standard water and wastewater services, Estate Water offers specialized water treatment such as distillation, desalination, ultra and nano filtration. It also offers specialized wastewater treatment like STP tertiary treatments, desludging, heavy metals wastewater treatment and water re-use. Additionally, it provides network services, water loss management and water quality testing.

Estate Water's 8-year journey has been a testament to its unwavering commitment to delivering world-class water and wastewater services. Its expansive growth, strategic partnerships, and diverse service offerings reflect a legacy of excellence, a legacy that will continue to shape the future of water and wastewater services in the Philippines.

Celebrate Estate Water's 8-year journey in the water and wastewater service industry. Explore their growth, major projects, strategic partnerships, and diverse service offerings, marking a legacy of excellence in the Philippines.