WSC seeking to keep up with financial obligations despite ‘huge amount of money outstanding’
The Water and Sewerage Corporation (WSC) is continuing to keep up with its financial obligations to Consolidated Water Co. (CWCO) despite continued challenges with accounts receivable from its customers, WSC’s Executive Chairman Adrian Gibson told Guardian Business yesterday after CWCO posted its first quarter 2019 results, which show that its cash and cash equivalents increased due in part to lower accounts receivable from its Bahamas operation.
CWCO explained that its cash and cash equivalents totaled $38 million as of March 31, 2019 as compared to $31.3 million at the end of 2018. The company also credits the sale of its discontinued Belize operations for this increase.
Gibson said WSC has engaged in various collection exercises, though the company still has a “huge amount of money outstanding”.
He added that WSC received a subsidy from the government in order to keep up with its commitments to its accounts payables.
“We have been seeking to keep up with our obligations and the subsidy has helped to address the challenges,” Gibson said.
“The challenge is we don’t own a lot of our plants and spend an exorbitant amount of money in regards to middle men, and it has become quite burdensome.”
According to Gibson, 60 percent of WSC’s operational expenses are going to the companies purifying water for the corporation, adding that WSC also has to pay for drilling and shipping and allows the companies to use the corporation’s exemptions and land.
He said as the contracts with these companies expire, WSC will begin to take control of its own water development.
Gibson said WSC has been training staff so they can be up to par in regards to operations and maintenance when those operations are taken over.
“It’s time we take control of areas we should have had control of,” Gibson said. “Some past deals have been bad deals.”
CWCO said in its 2019 first quarter results that its total revenue increased 17 percent to $17 million, and its gross profit is up 13 percent to $7 million.
Education: Florida International University, BS in Journalism
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