Lower energy costs in The Bahamas have contributed to a negative trend in earnings for Consolidated Water (CW), the company responsible for much of The Bahamas’ water supply through desalination plants, according to the company’s quarterly report.
While the company’s revenues were up more than four percent over last year, coming in at $19.1 million, the Nasdaq stock market reported underperforming shares on the S&P 500, which were down 11.9 percent.
In particular, The Bahamas contributed to a nearly 14.5 percent decrease in bulk revenue, which came in at $5.9 million.
“The decrease in bulk water revenue was primarily due to lower energy costs in The Bahamas, which correspondingly decreased the energy pass-through component of the company’s rates,” the company states in its second quarter report.
“The decrease was also due to a lower rate that came into effect in July 2019 for the North Side Water Works plant under the new contract with the Water Authority – Cayman.”
On the other hand, gross profit in the first half increased eight percent to $15.7 million during the second quarter and net loss attributable to Consolidated Water stockholders for the second quarter of 2020 was $1.1 million or [$0.07] per basic and fully diluted share, as compared to net income of $2.5 million or $0.16 per basic and fully diluted share in the year-ago quarter.
“In Q2, our core water production and distribution and manufacturing operations remained stable and profitable, although at reduced production levels due to the impact of the COVID-19 pandemic. This allowed our financial condition and liquidity to remain strong, with cash balances totaling $35 million at quarter end,” the company states.
Cash and cash equivalents totaled $35 million as of June 30, 2020, CW states; and the company paid $1.3 million in dividends in Q2 2020.