MANILA Water Co. (MWC), the water distribution arm of the Ayala group, said net profit for the first quarter of the year grew 22 percent to P625 million as revenues increased 16 percent on the back of higher billed volume and improvements in operating efficiency.

The company pointed to the P24 billion in capital investments made over the past 10 years as the main driver of the earnings growth. And the buck doesn’t stop there as starting this year until 2022, it plans to spend P187 billion for continued operational improvement.

“The new plan, which was approved by the regulators last December, will involve an aggressive capital investment amounting to roughly P7 billion per year. Our strong performance for the first quarter will ensure the successful execution of our investment initiatives, to support our expansion plans in the East Zone,” said president Antonino T. Aquino.

The company said it may borrow $150 million in the next two years to help fund its aggressive business plan, at least in the next five years.

“Our plan is to put the facilities in place or in advance before our actual need,” said chief financial officer Sherisa Nuesa. At the end of 2007, MWC’s total loan obligation stood at P6.2 billion.

“We have a healthy debt to equity ratio and that gives us the flexibility to borrow should the need arises,” she added.

This year, MWC will be spending P7.7 billion in capex and concession fees. Among its major plans for the year is to start building a P1.5-billion water treatment plant, which aims to raise its current production capacity by at least 100 million liters per day (MLD).

 It will also carry out an ambitious program to help clean the Marikina River by constructing at least three regional sewage- treatment plants using combined sewage-drainage systems along the banks of the Marikina River to serve Rodriguez, San Mateo, Marikina, Quezon City, Pasig and Antipolo. Once completed, the program is expected to benefit nearly 1.5 million people.

MWC will likewise increase its sewerage and sanitation coverage in its concession area and provide bulk-water supply to Bulacan. To date, the company, to date, is serving more than five million customers.

Apart from its local business, it is also considering initiatives in Asian countries like Hong Kong, China, India and Vietnam. MWC is planning to create a subsidiary to oversee its prospective international ventures and will also establish another unit to handle its environmental business activities. ­

Philippine Airlines (PAL) will proceed with its programmed purchase of six Boeing 777s as it plans to explore new destinations.

Ayala-owned water utility posts 22% earnings rise

MANILA Water Co. (MWC), the water distribution arm of the Ayala group, said net profit for the first quarter of the year grew 22 percent to P625 million as revenues increased 16 percent on the back of higher billed volume and improvements in operating efficiency.

After years of maintaining a minor role in the domestic electronics market, Taiwanese-owned Asus now wants to take its role higher by opening its first dedicated service center in the Philippines.

THE listing of business process outsourcing (BPO) provider SPi Global Solutions, the outsourcing unit of Philippine Long Distance Telephone Co. (PLDT), has been postponed.

Telecom firm Philippine Long Distance Telephone Co. (PLDT) sees core income this year to grow by 5 percent to P37 billion over last year, as it closely monitors inflation, exchange rate and overseas Filipino worker (OFW) remittance levels seen to may affect its financial performance.

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