WUC in P207m Loss

But records 14% revenue increase to P2.07bn from tariff hikes


For the year that ended 31 March 2021, Water Utilities Corporation (WUC) reported a loss before tax of P207.98 million (2021: P253.71 million) which is an 18 percent favourable movement compared to the previous financial year.

According to the Chief Executive Officer (CEO), Gaselemogwe Senai, the overall result (loss) can be summarised as an outcome of negative micro and macro-economic forces resulting from the COVID-19 pandemic and increased inflation.

Senai noted that the corporation recorded total revenue of P2.07 billion for the year ended 31 March 2022, an increase of 14 percent in comparison to the prior financial year.

New connections
He said the increase is mainly a result of the tariff increase that was introduced on 1 June 2021 and continued implementation of revenue maximisation strategies such as improved operational efficiency, reduction of Non-Revenue Water and new connections to customers.

Senai said WUC’s total operating expenses grew by P16.73 million to P2.34 billion (2021: P2.32 billion) for the year ended 31 March 2022, despite a 67 percent decrease in net impairment loss on trade receivables.

“This is an adverse increase of 1 percent in comparison to the prior year attributable to an increase in water treatment and distribution expenses,” he said.
The parastatal’s financial position (total assets) has improved by 33 percent to P14.74 billion (2021: P11.07 billion) due to an increase in noncurrent assets by 36 percent from P8.68 billion to P11.80 billion in 2022.

“The increase is attributable to property, plant and equipment acquisitions and new projects that commenced during the period,” he said.

Looking into the future, Senai highlighted that WUC is challenged with creating value for future generations through creation of sustainable water sources and infrastructure.
“This provides rare opportunities for stewardship,” he said. “The Corporation extended the strategy duration by another year to March 2023, with a drive to identify areas of enhancements that will put the Corporation in a position of being closer to achieving the status of a leading water utility service provider.”

Reset Agenda
He said the corporation has aligned with the government’s Reset Agenda, which directs that they improve performance to position the Corporation as a benchmark in operational efficiencies and transform it into a Centre of Excellence.

“In this vein, our project portfolio provides assurance of water for the future amid climate change where access to clean water and sanitation has become a global concern,” he noted.

“We remain committed to the delivery of the mandate to help our nation experience the ripple effect of the proverbial water drop as it contributes toward economic growth.”