State-owned PPWSA’s Net Profits More Than Halve in Q3

The capital’s sole water concessionaire, Phnom Penh Water Supply Authority, has reported lower profit and revenue on higher-net interest expense
Workers of Phnom Penh Water Supply Authority at work. Kiripost/Siv Channa
Workers of Phnom Penh Water Supply Authority at work. Kiripost/Siv Channa

State-owned Phnom Penh Water Supply Authority’s (PPWSA) net profit for the third quarter ending September 30, 2022 (Q3 2022) fell more than half to 28.01 billion riel ($6.7 million) from 59.7 billion riel ($14.4 million) a year ago.

Revenue dropped 20.3 percent to 91.9 billion riel ($22.1 million) in Q3 2022 compared to 115.3 billion ($27.7 million) last year, its filing with Cambodia Securities Exchange showed.

The lower profits and revenue were attributed to an exemption in dividend payment to the Ministry of Economy and Finance in the corresponding quarter last year (which augmented the Q3 2021 earnings) and the increase in net interest expense by 330.1 percent to 6.9 billion riel ($1.7 million).

For the cumulative nine-month period ending Q3 2022, net profit dropped nearly 20 percent year-on-year to 86.1 billion riel ($20.7 million) from 107.3 billion riel ($25.8 million). Revenue was down 8.2 percent at 253.9 billion ($61.1 million), compared to 276.5 billion riel ($66.5 million) last year.

Accordingly, PWSA's main revenue is derived from the sale of water and water pipe connections to households, commercial and industrial, administrative, rented rooms, and wholesalers.

The sales represented about 92 percent of gross revenue as of the end of Q3 2022. PPWSA holds the monopoly on water supply in Phnom Penh and its outskirts. It expects a growth in revenue, subject to the demography including the enlargement of Phnom Penh capital and Takhmao city.

At the time of press, the counter remained unchanged at 7,420 riel.