The board of Consolidated Water declared a cash dividend of $0.085 per share after the developer and operator of water supply and treatment plants posted record revenue in the first quarter of the year.
The cash dividend is payable on 31 July to shareholders of record at the close of business on 1 July.
The company’s revenue increased 22% to $20.7 million and gross profits increased 21% to $8.4 million in the first quarter of 2020 compared to the same period in 2019.
When the results were released in May, Consolidated Water CEO Rick McTaggart said the record sales came as a result of $3 million in revenue from PERC Water. Consolidated Water acquired 51% of PERC in the final quarter of 2019.
The company’s retail and manufacturing segment grew revenue and profits as well. The increase in retail revenue was due to a 10% rise in the volume of water sold by Cayman Water in what the company described as “drought-like conditions on Grand Cayman”.
The Consolidated Water CEO said that regional water-management challenges were creating demand not only for potable-water solutions, like desalination, but also for wastewater treatment and reuse projects.
“For states actively pursuing these projects, like California, Arizona, Texas and Florida, the anticipated demand for new wastewater treatment facilities and operations is actually several times higher than the corresponding category for potable water,” McTaggart said in May.
“PERC supports our pursuit of these water reuse projects and other emerging opportunities and has proven to be highly complementary and synergistic to our existing business and overall mission.”
The CEO said he remains optimistic about the future despite the impact of COVID-19 on the world economy and the company’s business.
“Over the near term, travel interruptions and resulting decline in tourism will likely adversely affect our retail water business on Grand Cayman,” he said.
The company’s revenue from bulk-water supply contracts with government entities is not as directly affected by a short-term decline in tourism, McTaggart said, but it could be adversely impacted over the longer term by continued weakness in the economies of the Cayman Islands and the Bahamas.
“We will remain vigilant and responsive to any challenges that may arise as this global pandemic plays out. At the same time, we will continue our mission of addressing water resource challenges. This includes continuing to actively evaluate acquisition targets in North America that would expand our geographic footprint and diversify our revenue streams,” he added.