Piped Water Sales Drop Due To Increased Rain

September 16, 2016

In a filing with the Bermuda Stock Exchange [BSX], Watlington Waterworks Ltd provided their report to shareholders for the six months ended June 30, 2016, saying their results were ”disappointing,” as Bermuda received 34% above average rain which led to piped water sales being down by nearly $250,000.

Water Bermuda TC September 15 2016 3 (1)

The full filing stated: ”The Company’s performance through the first six months of this year has been disappointing when compared with last year.

“The Company’s most important revenue stream is piped water which provides a supplementary potable water supply to commercial and private properties alike. Bermuda harvests over 50% of its potable water needs from rainwater collected on roofs.

“When we receive abundant rainfall, well distributed over a period of time, the demand for piped water is low.

“Through the first six months of this year Bermuda received 34% above average rain which was well distributed over the entire period. This led to piped water sales being down by nearly $250,000 when compared to the same period last year.

“Sales volumes were at a decades low. As a consequence the Company’s gross revenue to June 30 was down $177,279 and net earnings were down $196,790.

“Production costs were less because substantially less water was manufactured during the first half of the year, meanwhile distribution and administrative expenses increased a combined 1.2%.

“On a more positive note bottled water sales remained strong despite competition and retail sales recorded the best result in ten years. However these could not compensate for the loss of piped water sales.

“July continued the same trend as the first six months for rain but August saw a great difference as the rains lessened resulting in some piped water sales recovery.

“It will remain to be seen if there will be less rain in the second half of the year to create greater demand for piped water that could lead to some recovery.

“In June new tariffs for electrical power came into effect, which have the effect of increasing our costs for electricity by over 14%.

“Electricity expense is the Company’s second highest single expense and as such after holding prices unchanged for two years it suddenly became necessary for the Company to raise prices to compensate for the rise in power costs by more than traditional annual adjustments.

“The Company will not be deterred from its long term goals by the short term set-back Mother Nature caused and will continue to plan ahead to meet future demands for affordable public water supply to those parts of Bermuda it serves.”

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Comments (8)

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  1. And lets pray for wind or it will be a disappointing America’s Cup too.

  2. Factual says:

    “Disappointed” may not have been the best word to use in this situation. It’s like saying “we’re really mad that Bermuda families didn’t have to suffer and spend money out of their pockets for water because it rained so much.”

    Here’s a novel idea taken from snowplow operators in the Northeast: come up with an off-season plan. Many of them use their trucks for other things…more profitable, yet a bit more labor intensive, than bottling water. Just a thought so you won’t have to be “disappointed” again.

    • Juicy Onion says:

      Just like when there’s no rain the water truckers have to pick up other jobs like pumping out cesspits and stuff.

  3. joe says:

    I don’t get it. I pay them for piped water whether I use it or not, whether it rains or not. I can see how rain affects demand for trucked water, but how is piped water linked to rainfall? Are they talking about the overages you pay over 1,000 gallons?

  4. Evie says:

    Thank you Lord for the much needed tank rain may it continue in buckets for many many more months and years. Just saying I haven’t had to call or pay for water in years again thank you father to whom all blessings flow.

    Thank you Lord they can’t control Mother Nature so every house get it’s fair share rich or poor bless

    • Keepin' it Real!...4Real! says:

      Don’t worry they’re trying their damnest to control the weather and in some cases they do…HAARP!

  5. Nicola says:

    Well said everyone, thank heavens for Mother Nature

  6. mmm says:

    thank you Lord for the rain, water is expensive, so if you happen to run out be prepared to order at least three loads of water and expect to be rationed. Consider how jammed up you would be, if you are the only one working and two loads of water need to be ordered immediately cash on delivery.