Manila Water saw its net income drop in 2019 amid supply interruptions and government penalties.
The listed firm supplying Metro Manila's east zone reported a ₱5.5-billion consolidated net income on Friday, down 16 percent from what it made in 2018. The utility said the result was expected due to a weeks-long water supply shortage for its customers which began in March 2019, as the water level at the La Mesa Dam — its main source — continued to dip.Consolidated revenues rose by 11 percent to ₱21.95 billion, the company said in a disclosure.
Come August, the Supreme Court also handed a ₱921-million fine after Manila Water supposedly failed to put up sewerage systems for its service areas as required by the Clean Water Act. The Ayala-owned firm found itself in deeper trouble in December when President Rodrigo Duterte ranted against the water firm for charging losses worth ₱7.4 billion to the government, which was decided upon by an arbitral court in Singapore.
Duterte went on to blast Manila Water and its counterpart Maynilad in a series of public speeches, even ordering MWSS to cancel contract extensions until 2037.
Penalties were imposed because they did not meet the performance required. That’s called shooting yourself in the foot.
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