Watlington Waterworks Earnings Down
In a filing with the Bermuda Stock Exchange [BSX], Watlington Waterworks Ltd. released the Directors report to the shareholders, saying that “the company remains financially strong although earnings will be substantially down due to COVID-19 related closures and reduced operations.”
The full filing stated:
The opening Quarter of this year looked very promising for the Company as it had a record first Quarter result. However, the onset of the pandemic emergency measures at the beginning of April ended the strong beginning abruptly.
As an essential service the Company’s utility and bottled water divisions continued operations throughout the shelter in place period while the retail shop was closed through most of April and initially re- opened with curbside service and later with restricted access.
The closing of Hamilton and all hotels and restaurants reduced demand for our products and services in key areas. Without the larger customers, utility operations became more difficult due to higher demand volatility depending on rain.
For bottled water, the closing of commercial customers created a slump in 5-gallon bottle sales. This was partially offset by higher 3-gallon sales as retail sales through the grocery and convenience stores increased during shelter in place restrictions.
The Company remains financially strong although earnings will be substantially down due to COVID-19 related closures and reduced operations. The Board remains committed to its long- term investment plans, at the same time the Board intends to remain sensitive to shareholders by maintaining its dividend subject to earnings and cash flow.
There is an element of uncertainty about how changes induced by the pandemic experience will affect the Company going forward but there remain core infrastructure strengthening and replacement projects which should continue because of the long-term benefits to be derived from these projects.
We have entered uncharted waters due to the pandemic. We will have to adapt as necessary and a full recovery may take longer than anticipated. This is beyond the Company’s control; in the meantime, the Company will continue to work at strengthening infrastructure to sustain our quality of products and services.
