Private water firm remains in talks over new licence
(CNS Business): The Consolidated Water Company has said that it is still in talks with the local authorities regarding a new retail licence after its existing deal expired last December. In its operating results for 2015, in which it revealed a drop in sales in both Cayman and the Bahamas but an increase in net profits, the firm said it had been given an extension to operate until June but had no papers. “Negotiations with the Water Authority-Cayman for a new retail licence recommenced during the third quarter of 2015 and we remain encouraged by our recent discussions with the WAC,” the firm’s CEO Rick McTaggart said.
“However, we remain unable to predict the completion date or final resolution of these negotiations. The most recent extension of our retail license was scheduled to expire December 31, 2015. However, we have been informed by the WAC that the licence will be extended to June 30, 2016 and that formal documentation of this extension is in process,” he stated.
The report also revealed that a fall in energy prices reduced revenue and the volume of sales in Cayman declined by 3% after the Water Authority reduced its demand in 2015 compared to 2014. But the firm still cleared some 40% profit from the revenue it collected.
“We are pleased to report an increase in net income for 2015, despite significantly lower revenues arising from declines in energy prices that decreased our rates and a reduction in the volume of water sold by our bulk operations,” McTaggart said in the report. “This increase in net income reflects (i) operating efficiencies, water loss mitigation efforts and construction activities that enabled us to maintain our gross profit at an amount essentially equal to that for 2014.”
He said that operating activities generated $17.3 million in cash during 2015 and the firm increased its working capital by almost $9.3 million over the course of the year to approximately $52.2 million, and our stockholders’ equity totaled $145 million at 21 December 2015.
“We are confident that our strong financial condition and liquidity position will enable us to aggressively pursue strategic opportunities as they arise in 2016 and thereafter,” McTaggart added.
Category: Local Business
