Watlington Waterworks Ltd. endured a tale of two quarters for the first half of this year, according to its 2009 interim financial results.

The utilities company's net earnings were down $250,000 after the first quarter compared to the same period last year but up $230,000 by the end of this year's second quarter, and ahead of the result for the first six months of 2007, which was a record year.

The $450,000 swing in comparative results was due to contrasting weather patterns from year to year.

The winter to early spring drought during 2008 boosted company sales, but in its absence takings were lower for the first quarter of 2009. But this year, a drought between spring and early summer produced higher demand than last year.

The company will now focus on residential sales as a result of the downturn in tourism — a core part of its business.

"This outcome highlights our ability to produce to meet high demand when called upon to do so," read the directors' report to shareholders.

"Our ongoing success now relies on this due to the downturn in tourism. We have reoriented our operations to suit local residential requirements as a first priority through our infrastructure strengthening.

"We are well-positioned to provide future service to the tourism industry when its revival comes, In the meantime, we believe continued growth be will through expanding our services within the local resident community."

Revenue from operations was up at $5.2 million for the six months to June 30, 2009 compared to $4.7 million in 2008, while shareholder equity rose to $17.1 million versus $15.2 million respectively, as did total assets to $17.9 million from $16.2 million

Watlington said it continue to work towards improving operational efficiencies to increase production in terms of both its pipeline and bottled water service to the local community.

"We cannot predict future weather patterns but on the basis of our first half result, and sales to date through the third quarter, despite the challenges of the current economic climate, we now believe that 2009 may turn out to be a stronger year for us than 2008," the report concluded.