Watlington Waterworks: “Extraordinary Year”
In a filing with the Bermuda Stock Exchange [BSX], Watlington Waterworks Ltd. released the annual financial results to December 31, 2016 along with the Directors Report.
The Directors’ Report stated, “The year 2016 was an extraordinary year for the Company due to the nature of the challenges that had to be confronted and the ultimate outcome which was to have the most successful year in eight years since the 2008 recession.
“Despite over 70 inches of rainfall in 2016 which was 15 inches more rain than the previous year, overall water sales increased. The improvements came from both Utility and Bottled Water sales.
“Both Divisions had price increases effective mid-year. The Utility Division tariffs had remained unchanged for two years prior to its adjustment, and the Division also increased its number of connected customers.
“Bottled Water’s revenue increased as the total number of units sold increased despite new competition selling 3 Gallon product in recyclable bottles.
“Retail plumbing sales were stronger as the Company competitively priced its popular brand name products and the national economy strengthened.
“Previous infrastructure investment to improve on efficiencies and a concerted drive throughout the year to reduce pipeline distribution losses led to a decline in production costs, which enabled a small improvement in margins further contributed to the stronger results.
“The Company remains committed to its long-term infrastructure strengthening to improve all facets of the Company and to take advantage of technology advances to enhance productivity. This policy has led to improvement in underlying performance as witnessed in the past year despite the adversarial environment created by the excessive rains and new competition.
“The Board remains committed to sharing this success with shareholders through increasing the ratio of free cash flow to earnings that will be distributed to shareholders.”
