PPWSA’s Q3 profit hit by expenses
Cambodia’s first listed company, the Phnom Penh Water Supply Authority, yesterday reported a 41 per cent drop in profits after tax for the quarter ending September 30, with the company attributing the drop to an increase in expenses incurred over the quarter.
Despite increasing revenues by 19 per cent, to a little under $10 million for the third quarter this year, profit after tax dropped to $2.6 million, compared to $4.53 million earned during the same period last year, according to a quarterly filing issued yesterday.
In its filing, the company attributed the drop in profits to an increase in spending on construction expenses, repairs and maintenance, as well as raw materials used in the water treatment process.
“At the same time, repair and maintenance expense increased approximately by $198,000 on reconstruction due to road expansion, bridge and sewage construction of Phnom Penh Capital Hall,” the release said.
Despite the third-quarter stumble, profits for the first nine months of the year were still acceptable, with the water authority reporting a 14 per cent increase in profits. Profit after tax for the first three quarters this year was $9.7 million, up from $8.5 million reported for the same period in 2014.
The decrease in profits took a toll on the company’s earnings per share, which dropped to 122.27 riel, or $0.03, this quarter, but for the first nine months earnings per share were 452.4 riel, or $0.11, still higher than it was in 2014.
The water authority’s share price ended yesterday’s trading session at the Cambodia Securities Exchange up 0.4 per cent to 4,880 riel, or $1.21.