The company that built Bermuda's seawater reverse osmosis plant saw its profits triple during the fourth quarter.

Consolidated Water Co. Ltd.'s net income surged to $2.7 million, or 18 cents per share, from $674,046, or five cents per share, a year earlier. Revenue climbed 34.4 percent to $12.5 million from $9.3 million during the three-month period ending December 31, 2007.

Revenues from service shot up 588 percent, to $2 million, versus $0.3 million in the year-earlier quarter.

The substantial increases in revenues and gross profits in the services segment was due to revenues recognised for the construction of the Tynes Bay Seawater Reverse Osmosis Plant here in Bermuda and the expansion of the North Sound plant on Grand Cayman Island on behalf of the Water Authority-Cayman

For the full year, Consolidated Water's profit rose 51.4 percent to $11.4 million, or 79 cents per share, from $7.5 million, or 59 cents per share, in 2006. Revenue rose 28.6 percent to $49.1 million from $38.2 million

Rick McTaggart, CEO of Consolidated Water Co. Ltd said: "Looking forward, we believe Consolidated Water is well-positioned for further growth in 2008, although our optimism is tempered by analyst forecasts of a recession in the US economy. While a US recession would certainly impact tourism in some of our markets, the Caribbean region attracts tourists from many other parts of the world, and a substantial portion of the water produced by our plants is consumed by businesses and full-time residents.

"In 2008, our bulk water segment will benefit from a full-year's sales from the expanded North Sound plant on Grand Cayman and full utilisation of the Blue Hill plant production now that the NRW project has been completed. Meanwhile, our services segment should recognise revenues from final construction at Tynes Bay and from the new Frank Sound Plant on Grand Cayman.

"We are looking at a number of new opportunities in the Caribbean region including expansions to existing plants and hope to obtain some of this business later this year,"

The record earnings come after a rocky period for Consolidated Water. The company has faced increasing pressure since November when it announced that Ocean Conversion, a party-owned subsidiary that sells water to the British Virgin Islands, is in a decade-long battle with the territory's government over a new water supply agreement. The British Virgin Island government claims to own Ocean Conversion's desalination plant in Tortola and has paid only 40 percent of the amount Ocean Conversion billed for the water.

Consolidated owns 50 percent of the voting stock of Ocean Conversion and a 45.1 percent interest in the company including equity and profit-sharing rights. It also receives revenues from a management agreement with Ocean Conversion.

Analysts believing the dispute could lower the company's 2008 earnings by approximately one-third.

Earlier this month it was also announced that executive Chairman Jeffrey Parker will step back from his duties on July 4 - after 28 years with the company - to pursue other interests.