Watlington Waterworks Six Month Report
In a filing with the Bermuda Stock Exchange, Watlington Waterworks released the Directors Report to shareholders for the six months ended June 30th, 2019.
The full filing stated, “The Utility Division of the Company’s subsidiary Bermuda Waterworks Limited provides piped drinking water as a supplementary supply to rainfall harvesting. This division generates 65% of all revenue for the consolidated group. The Company’s results therefore have a strong inverse correlation to rainfall. In years when rainfall is below average one can expect stronger results and vice versa.
“For the first six months of this year rainfall was more than 3 inches above last year. This created softer demand for our piped water product, which resulted in piped water sales being down compared to last year.
“This was offset to some extent by increased sales from both our bottled water and retail plumbing divisions improving from the same period last year, However, due to the substantial influence the Utility Division’s revenue has on the Company overall, the Company’s revenues through the first six months were weaker than for the same period last year.
“The Company’s potential is not changed by a period of higher rainfall because it will inevitably be followed by a period of lower rainfall. The Board appreciates the ebb and flow of the Company’s revenue as it relates to rainfall and takes a longterm view of opportunities and plans accordingly.
“It is important that the Company is well equipped to realize its potential when there are periods of very high demand created when there is insufficient rainfall harvested to satisfy needs.
“The Company continues to connect new customers to its pipeline networks and must ensure it maintains the capability to produce reliable and consistent quantities of water required to meet the ever increasing numbers of customers connected to the pipeline system.
“The demand for the Company’s other products and services has remained strong through the first six months of the year with all sectors [apart from piped water] performing better than last year.
“The Company completed the purchase of a parcel of land in Southampton on which it is intended to build a new large reservoir and water treatment building. Excavation of the site commenced during the second quarter.
“Plans for the structure are well advanced with the aim to commence construction sometime in the first half of next year. This total project will involve significant capital investment in our infrastructure to meet customers’ current and future demand.“
