Watlington Directors Report To Shareholders
In a filing with the Bermuda Stock Exchange [BSX], Watlington Waterworks released their latest report for the shareholders.
The full filing stated: “Watlington Waterworks Limited Directors’ Report to Shareholders for the six months ended June 30th, 2022.
“There were early signs that demand for our products and services were strengthening as Covid regulations were eased and Bermuda began to open again as the health threat subsided. The early signs of revival have been affirmed as sales improved month by month through the first half of the year.
“The Company’s results through the first half of the year strongly indicate we are experiencing a rebound in demand for our products and services, although it must be qualified that we have not yet returned to pre-pandemic levels of economic activity.
“The island has experienced a lengthy period of below average rainfall starting in April and the rainfall deficit continued to grow through the second quarter and extended to mid-way through the third quarter, inducing short-term drought conditions. As the rainfall deficit increased, demand gradually increased for our products and services.
“Because of increased demand for our services and products, earnings for the first six months were up 15% compared to the same period last year as gross revenues increased 14.5%. This trend has continued into the third quarter which has created optimism that the Company will have a strong recovery from last year.
“Of interest to the Board has been the recent observation that despite the drought conditions, peak daily demand for piped water was approximately 90% of previous peaks experienced during similar past droughts, because the Southampton Princess remains closed and tourism in general has not fully recovered to pre-pandemic levels. The Board expects these challenges will be addressed and the Company’s performance will strengthen further as our economy recovers.
“The Company continues its long-term infrastructure strengthening as the 3-million-gallon reservoir construction project progresses. There have been some delays caused by supply chain issues. It is anticipated that construction will be completed late this year and the accompanying pump station will be commissioned early next year.
“The ongoing Middle Road pipeline project has paused at the Lighthouse Road junction with Middle Road but will continue westward later this year. This project dovetails with the reservoir construction to enhance operational efficiencies by providing another route for the transmission of water either in a westerly or easterly direction.
“On completion of this project the Company will have water mains from Devonshire to Somerset in all primary roads which significantly expands the Company’s potential future distribution and provides a more secure future potable water supply for the western half of Bermuda by virtue of greater distribution redundancy.
“The Board will continue to position the Company to be able to meet future capital and operational demands with financial flexibility to successfully adapt to market changes and future opportunities.”
