By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
BULK Water revenues by BISX-listed Consolidated Water for the second quarter of 2015 fell by 18 per cent compared to the same period the previous year, led by a $1.2 million revenue decrease from its Bahamian operations.
According to Consolidated Water’s second quarter operating results its water revenues were approximately $8.2 million in the second quarter of 2015, compared with approximately $10 million in the previous year period. “The decrease in bulk revenues was attributable to both the Bahamas and Cayman operations, where revenues decreased by approximately $1,266,000 and $437,000, respectively, from the prior-year period,” the company said yesterday. “The 2015 revenue decrease for bulk operations resulted from declines of 9 per cent and 5 per cent in the volumes of water sold by the Bahamas and Cayman operations, respectively, and significant decreases in the prices of diesel fuel and electricity from 2014 to 2015 that reduced the energy component of the Company’s bulk water rates.”
“Lower volumes of water sold in the Bahamas reflected continuing water conservation and loss mitigation efforts by the Water and Sewerage Corporation (WSC) of the Bahamas. Lower volumes of water sold in the Cayman Islands resulted from a decrease in demand from the Water Authority - Cayman (WAC),” it added.
Water and Sewerage General Manager Glen Laville told Tribune Business in June that the corporation has saved $6.5 million through the first two years of its non-revenue water (NRW) reduction project, cutting its daily water losses in half. The savings come from the 10-year, $83 million contract that the WSC has signed with Miya to reduce leakage from its distribution system.
Consolidated Water reported that net income attributable totalled $2,228,100, or $0.15 per diluted share, for the quarter ended June 30, 2015, compared with $2,759,653, or $0.19 per diluted share, for the quarter ended June 30, 2014. “Total revenues declined to approximately $14.5 million in the second quarter of 2015, compared with approximately $16.9 million in the second quarter of 2014. The decrease in revenues was attributable to lower revenues in all three of the Company’s business segments,” Consolidated Water said.
“Retail water revenues were approximately $6.2 million in the second quarter of 2015, compared with approximately $6.5 million in the prior-year period. While the volumes of water sold by the retail segment were comparable with prior-year levels, revenues declined due to a decrease in electricity prices from 2014 to 2015 that reduced the energy component of the company’s retail water rates. Under the terms of the company’s retail licence, a portion of the rates it charges customers is adjusted upward or downward consistent with movements in the price the company pays for electricity.”
The company reported that total revenues for the first half of 2015 were approximately $29.2 million, compared with approximately $33.3 million in the corresponding period the previous year. The decrease in revenues was attributed to lower revenues in all three of the company’s business segments. Retail water revenues declined slightly to approximately $12.3 million in the six months ended June 30, 2015, compared with approximately $12.6 million in the prior-year period. The decrease in revenues was attributable to a decrease in electricity prices from 2014 to 2015 that reduced the energy component of the Company’s retail water rates, the company said.
Bulk water revenues declined to approximately $16.6 million in the six months ended June 30, 2015, compared with approximately $19.9 million in the year-earlier period. The decrease in bulk revenues was attributable to both the Bahamas and Cayman operations, where the volumes of water sold decreased 12 per cent and 3 per cent, respectively, from the prior-year period.
Also, significant decreases in the prices of diesel fuel and electricity from 2014 to 2015 reduced the energy component of the Company’s bulk water rates. Services segment revenues totalled $294,369 in the first half of 2015, compared with $742,294 a year earlier.
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