0

Consolidated Water: Q2 Bulk Water Revenue Decline Attributable To Wsc Water Loss Reduction Programme

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

BISX-listed Consolidated Water has reported that its bulk water revenues declined to approximately $10 million in the second quarter of 2014, executive attributing this to a decrease in the volume of water sold by the Company’s Bahamas operations to the Water and Sewerage Corporation (WSC).

Rick McTaggert, Consolidated Water’s chief executive, said in a conference call to unveil their 2014 second quarter results that bulk water revenues declined slightly (2 per cent) to approximately $10.0 million (59 per cent of total revenues) in the second quarter of 2014, compared with approximately $10.2 million (61 per cent of total revenues) in the prior-year quarter. “Revenues from our Bahamas com pay declined about $660,000 due to our customer’s successful implementation of a multi-year water loss reduction program,” said Mr McTaggert. Miya (Bahamas), a wholly-owned subsidiary of the Arison Investment Group, signed a 10-year, $83 million contract with the Water and Sewerage Corporation (WSC) in 2012 to reduce the leakage from its distribution system. Mr McTaggert noted however that the company’s Cayman bulk revenues generated $435,000 more in revenues this past quarter due to high water sales which almost offset the decline in revenues in its Bahamas business.

Consolidated Water which develops and operates seawater desalination plants and water distribution systems in areas of the world where naturally occurring supplies of potable water are scarce or nonexistent, reported that total revenues for the second quarter of 2014 increase slightly (2 per cent) to approximately $16.9 million, compared with approximately $16.6 million in the second quarter of 2013. The company reported that retail water revenues increased 5 per cent to approximately $6.5 million (38 per cent of total revenues) in the most recent quarter, versus approximately $6.2 million (37 per cent of total revenues) in the second quarter of 2013.

“The increase in retail revenues was due to an approximate 8per cent increase in the number of gallons of water sold by the Ccmpany’s retail operations in the Cayman Islands and the Company’s facility in Bali, Indonesia.

“Services segment revenues rose 105 per cent to $466,381 in the quarter ended June 30, 2014, compared with $227,211 in the corresponding period of 2013, primarily due to construction revenues generated from contracts with the Water Authority-Cayman to refurbish the Lower Valley plant and to build a plant on the island of Cayman Brac,” the company reported.

Comments

Use the comment form below to begin a discussion about this content.

Sign in to comment