MANILA Water said its net income grew 34 percent year-on-year to P1.97 billion in the second quarter of this year compared to the same quarter last year.

This came on the back of an increase in customer base and the recovery in consumption brought about by the improving economy, a disclosure to the Philippine Stock Exchange showed.

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Revenues increased 18 percent to P5.5 billion from the same period last year.

The improvement in revenues was supported by the five percent growth in water sales to 203.3 million cubic meters (mcm) in the quarter from 194.4 mcm in the same quarter last year.

The company was able to connect an additional 64,039 households to the network in the first six months of 2010, resulting in the expansion of its customer base to 1.2 million households.

The company’s non-revenue water level fell by three percentage points to 13.5 percent in the second quarter from the year-ago level of 16.4 percent.

Operating costs increased eight percent to P1.45 billion as of June as a result of the continued expansion of the water and wastewater network coverage in the East Zone.

Power costs, in particular, grew significantly following the increase in electricity tariffs.

Outside the East Zone, Manila Water’s operating units in Laguna and Boracay continued to post gains.

Laguna Water’s net income grew 263 percent to P7.43 million amid a 15 percent increase in revenues and improved operating efficiencies.

Manila Water took over the operations in the Laguna concession in September 2009.

Boracay Water, on the other hand, saw an 81 percent in net income to P5.5 million due to a one-time adjustment resulting from the implementation of the IFRIC (International Financial Reporting Interpretations Committee) 12 accounting standard. Revenues were up 33 percent on strong tourist inflows during the summer season.

Boracay Water started operations last January.

Capital expenditures (capex) for the first half of the year totaled P4.3 billion, almost half of Manila Water’s capex program of P10 billion for the entire year. (PR)