Consolidated Water reports drop in 2013 net income

The Cayman Island’s largest water distributor has dipped in a dry spell after recording a drop in net income last year from $9.3 million to $8.6 million. 

Consolidated Water develops and operates seawater desalination plants and water distribution systems in areas of the world where naturally occurring supplies of drinking water are scarce or nonexistent. 

A report from the company said the recent decrease in net income was attributable to the earnings and profit sharing derived from the company’s equity investment, which dropped $1.3 million. 

Total revenue for the year ending December 31, 2013, decreased 2.5 percent to around $63.8 million, compared to $65.5 million in 2012. 

The report also found retail water revenues dropped 5 percent to $23 million. 

The decline in retail revenues was due to an approximate 8 percent decrease in the number of gallons of water sold by the Company’s Cayman retail operation, the company said. 

CEO Rick McTaggart said management was not certain of the cause of the decrease in volume of retail water sold, but believe it could reflect the adoption of water conservation measures by certain larger customers. 

“The erosion over the past three years of our retail sales volumes in Grand Cayman is somewhat confounding, given that economic conditions and tourists’ numbers continue to improve,” Mr. McTaggart said. “We are currently speaking with some of our larger customers to determine what factors may be contributing to this phenomenon.” 

Service revenues increased 80 percent to $840,000, primarily due to an increase in management fees. 

Consolidated Water also operates water production and or distribution facilities in Belize, the British Virgin Islands, the Bahamas and Bali.