Log In

Reset Password
BERMUDA | RSS PODCAST

Watlington profits climb on lower rainfall

Profits rose at Watlington Waterworks Ltd in 2015 as less rain fell.

The company said profit attributable to shareholders was $2.19 million, up from $2.08 million in 2014.

Revenue rose by $182,000 to $10.21 million, while administrative and expenses climbed to $5.4 million from $5.3 million.

In its directors' report to shareholders, Watlington said 2015 was “the company's strongest year since the onset of the recession”.

However, the company warned that its customers were likely to face price increases during the next year.

“Water sales improvements were due to increases in both bottled water sales and piped water sales,” Watlington stated. “The Utility Division did have a decrease in customers last year, despite expansion in the West End because of a cull of inactive services and customers leaving residences that were previously served by pipeline.

“However, sales were boosted by a 17 per cent decrease in rainfall compared to the previous year.”

The company is in the process of a long-term redevelopment of its Parsons Lane site and has commissioned a new bottling plant and warehouse with the aim of improving production and storage capacity.

Watlington said its investments in new seawater reverse osmosis membranes and an improved brackish water reverse osmosis plant had increased efficiency.

“This operations model allowed the company to hold prices for its products and services unchanged through the year 2015, which was good news for customers,” the company stated.

“There is only so much that can be done to hold the line on operating costs and with increased taxes and accrued inflation pressures over the past two years it is unlikely the company will go through another year without having to make some price adjustments.”

The company announced a special divided of 14.5 cents per share, payable on June 29 to shareholders of record on June 15, 2016.

Watlington said it maintained a “substantial cash/investment reserve”, earmarked for land purchases and the construction of a reservoir in the west end.

The utility has agreed a memorandum of understanding with the Bermuda Government to acquire the government-owned water supply assets in the western parishes.

“Government has publicly invited proposals to value their assets,” Watlington stated. “The company awaits the outcome of the valuation.”

Watlington Water: profits climbed for the utility as less rain fell in 2015

You must be Registered or to post comment or to vote.

Published May 10, 2016 at 9:00 am (Updated May 10, 2016 at 12:48 am)

Watlington profits climb on lower rainfall

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon