$12m upgrade on Windsor water plant nears completion

By Natario McKenzie

Tribune Business Reporter

nmckenzie@tribunemedia.net

BISX-listed Consolidated Water is in the “final stages” of commissioning its Windsor Plant, its chief executive telling shareholders yesterday approximately $12m has been spent on the upgrades.

Rick McTaggart, CEO of Consolidated Water Company (CWCOO) told investors during a conference call: “We’re spending approximately $12m on that upgrade. We’re in the final stages of commissioning right now so most of that has been spent already.”

The government pays Consolidated Water for supplies produced by the company’s two Nassau-based reverse osmosis plants, Blue Hills and Windsor. The company secured a 15-year extension at the end of 2016 over the Windsor plant, which Mr McTaggert noted “kicks in” once upgrades are completed later this year.

Consolidated Water released its second quarter 2018 results last week, revealing the revenue of the company’s manufacturing segment nearly doubled. According to the financial results, the company’s total revenues for the second quarter of 2018 were $15.9m, which represents a 3.9 percent increase from $15.3m in the same period last year.

“Gross profit amounted to $6.6m, compared with $6.5m in the same quarter last year. Net income attributable to Consolidated Water stockholders was $2.2m, or $0.14 per fully diluted share, compared with $0.6m, or $0.04 per fully diluted share, reported in last year’s comparable quarter,” the company stated

“In the second quarter of 2017, the company recorded an impairment loss of $1m relating to its Bali operations, however this subsidiary did not have a material adverse impact on the company’s results or operations for the second quarter of 2018.”

David Sasnett, the company’s chief financial officer, noted during the conference call that the company is seeking to establish a payment plan with the government or the Water and Sewerage Company (WSC) over an outstanding receivable balance.

“If you follow our company you’ll know that this is a pattern that’s been related probably over the last 10 years, at least as long as I have been CFO. Typically the Bahamian government and WSC accumulate receivable balances over the summer and they establish a payment plan with us. Usually by the end of the year we are back to our normal balances. We have no reason to believe that is not going to be the case again this year, however, as of right now we haven’t been able to establish a payment plan with the Bahamian government or WSC,” said Sasnett.