Watlington Waterworks Report 2015 Q2 Results
In a filing with the Bermuda Stock Exchange, Watlington Waterworks Ltd. released the six month financial results to 30 June, 2015 along with the Directors Report which said they had their ”best first half of year performance since the recession commenced” and they have installed more than 40,000 feet of new pipeline in the Western parishes since July 2010.
The Directors Report stated, “The Company had its best first half of year performance since the recession commenced as both Gross and Net earnings improved over last year.
“Four of the first six months this year were up on the same period last year. Operating expenses have increased but the investments made to improve infrastructure and efficiencies have helped to constrain expenses, and the improvements seen last year in gross profit margin, have continued to contribute to stronger net earnings.
“A milestone was reached this year for the Company as it fulfilled its obligations under the Memorandum of Understanding with the Bermuda Government in March as the pipeline loop around Somerset Island was completed. In all the Company has installed more than 40,000 feet of new pipeline in the Western parishes since July 2010.
“Metered water sales comprise approximately two thirds of revenue so it is not surprising that on an island where rainfall is harvested and our metered supply provides supplementary potable water supply, the overall success of the Company is tied to rainfall.
“The Company’s business cycle has always paralleled our seasons with the Third Quarter normally a very strong quarter. Again this year we have experienced a prolonged intensifying dry spell that was suddenly ended by heavy rains.
“June of this year was a very strong month for the Company that continued into July until the rains started. Again this year, late July and August rains have filled all tanks thereby significantly reducing demand for our Company’s products.
“Early third Quarter results have shown an improvement on the same period last year. As was the case at the same stage last year, it will take another period of dry weather to reestablish substantial demand.
“The Company is anticipating, like many others, that there will be an interim upswing in demand for our products that is not weather related in October as a consequence of the series of America’s Cup races to be sailed from Hamilton.
“Results through the same period this year are stronger than last year and assuming there is an interim upswing in October we are forecasting this year will produce an improved overall result when compared to last year which would make it the Company’s best year since the recession commenced.”
