Maynilad Water Services, Inc. posted a 10.2% increase in net income to P12.6 billion for the first nine months of 2026, up from P11.4 billion in the same period a year earlier, as lower interest expenses and higher interest income lifted the bottom line.

At a press briefing on Thursday, Maynilad Chief Finance Officer Ricardo F. De Los Reyes said revenues of the west zone water concessionaire rose 3.5% to P28.6 billion from P27.7 billion in the year-earlier period, supported by higher billed water volume, tariff adjustments, and customer growth.

“Billed volume increased by 2.7%. Combination with the tariff increase that resulted in our revenues improving by 3.5%,” Mr. De Los Reyes said.

Maynilad’s water service coverage increased to 95.2% from 94.8% a year earlier, while 94.5% of its service area had access to water around the clock at sufficient pressure. Total billed customers reached 1.59 million as of end-September, up 1.5% year on year.

The company’s non-revenue water (NRW) level declined to 29.3% as of end-September from 32.8% a year earlier. NRW refers to water that is produced but does not generate revenue because of leaks, illegal connections, metering inaccuracies, and other losses. Cutting these losses is among the most direct efficiency levers for a water utility, since water saved from leaks and illegal connections translates into additional supply that reaches paying customers.

Wastewater service coverage expanded to 95.7% from 90.4%, while sewerage coverage rose to 27.7% from 25.9% and sanitation coverage improved to 68% from 64.5%.

Capital expenditures reached P19.5 billion in the January-to-September period, up 4.8% from P18.6 billion a year earlier. For 2027, the company is preparing a P27.5-billion capital expenditure program — lower than the P30 billion allocated for this year — with investments focused on strengthening water security and reducing water losses.

“While water supply risks and elevated inflation continue to shape the operating environment, we remain focused on strengthening our water supply resilience and improving network reliability,” Maynilad President and Chief Executive Officer (CEO) Ramoncito S. Fernandez said.

“Our sustained investments in infrastructure and operational efficiency are intended to support growing demand, improve service delivery, and create long-term value for our customers and stakeholders,” he added.

Leadership Transition

Maynilad is also preparing for a leadership change, with Mr. Fernandez set to retire after nearly 11 years as president and CEO. He will step down on Dec. 31, 2026, and will be succeeded by former Metropolitan Waterworks and Sewerage System (MWSS) Chairman Ramon B. Alikpala effective Jan. 1, 2027.

Mr. Alikpala previously served as executive director of the National Water Resources Board and chairman of the MWSS Board of Trustees — the government agency that oversees Metro Manila’s water concessions — giving him prior experience with the framework under which Maynilad operates. He also served as chief executive officer of water advisory and consulting firm FutureWater Asia.

Among his priorities will be strengthening water security across Maynilad’s service area amid the ongoing very strong El Niño, which is expected to increase the risk of below-normal rainfall and drought in several parts of the country.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said on Wednesday that a very strong El Niño is present in the tropical Pacific and is expected to persist until the first half of 2027, potentially peaking before the end of this year. That outlook spans the start of Mr. Alikpala’s tenure and the first year of the P27.5-billion capital program, both oriented around water security.

“As I prepare to assume this responsibility, I look forward to working closely with the management team to sustain improvements in water service reliability, strengthen water security and continue the company’s long-term investment and operational priorities,” Mr. Alikpala said.

Service Area and Ownership

Maynilad provides water and wastewater services in the west zone of Metro Manila and parts of Cavite province. Its service area covers Manila, except portions of San Andres and Sta. Ana; parts of Quezon City and Makati; and Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. It also serves Cavite City, Bacoor, Imus, Kawit, Noveleta, and Rosario in Cavite.

Metro Pacific Investments Corp., Maynilad’s majority shareholder, is one of three Philippine subsidiaries of First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds an interest in BusinessWorld through the Philippine Star Group, which it controls.

— Sheldeen Joy Talavera, BusinessWorld

Source: BusinessWorld