Water Sales and Lower Taxes Raises PPWSA’s Q4 Profits

Public-listed Phnom Penh Water Supply Authority expects better revenue in Q1’23
Workers of Phnom Penh Water Supply Authority at work. Kiripost/Siv Channa
Workers of Phnom Penh Water Supply Authority at work. Kiripost/Siv Channa

Increased sales and construction service fees and lower taxes nudged Phnom Penh Water Supply Authority (PPWSA)’s net profit to rise marginally to 22.1 billion riel ($5.4 million) in its fourth quarter ended December 31, 2022 (Q422) from 21.95 billion riel a year ago.

Quarterly revenue came in at 92.3 billion riel ($22.7 million), or 0.4 percent lower than 92.7 billion riel, in the corresponding period last year due to a drop in “other income” and foreign exchange net gain, its filing with Cambodia Securities Exchange shows.

The state-owned entity generates revenue from water sales, construction service fees and other incomes such as water meter maintenance, sale of water pipes and penalties.

For the full financial year ended December 31, 2022 (FY22), net profit fell 16.3 percent to 108.2 billion riel ($26.6 million) from 129.3 billion riel in FY21 as revenue dropped 6.2 percent to 346.2 billion riel ($85.02 million) from 369.1 billion last year.

PPWSA plans to produce 57.4 million cubic metres of clean water and expand its distribution network by 162 kilometres for the first quarter ending March 31, 2023.

It also hopes to raise its revenue to 96.9 billion riel and keep total expenses to around 74 billion riel, as approved by the board and parent ministries - Ministry of Industry, Science, Technology and Innovation, and Ministry of Economy and Finance.

The stock dipped half percent to close at 7,920 riel for a full market capitalisation of 3.8 trillion riel ($929.9 million).