Consolidated Water Earnings Drop on BVI, Mexico

Consolidated Water Co. (CWCO), the largest water provider in the Caribbean, said first-quarter profit fell 82 percent on lower earnings from a British Virgin Islands investment and higher development costs for a project in Mexico.

The shares tumbled after the company reported net income for the quarter ending March was $655,000 versus $3.7 million a year earlier. Consolidated Water cited a drop in profit sharing from affiliate OC-BVI and increased costs related to a Baja California desalination project.

Revenue slipped 1 percent to $16.3 million as the volume of water sold by retail operations declined and service sales dropped 9 percent, the Georgetown, Cayman Islands-based company said in a statement. Results in the Cayman Islands were hurt by a 12-fold rise in rainfall in the quarter compared with the year-earlier period, it said.

The company reported its results after the close of regular trading yesterday. Shares fell 11 percent to $11.17 at the close in New York today, the biggest drop in six months. They’ve fallen 21 percent this year compared with a 6.7 percent gain by the 19-member Bloomberg World Water Index.

The Caymans’ water authority has awarded the company contracts this year to upgrade a desalination plant on Grand Cayman, extend a contract for the North Sound facility and provide a 60,000 gallon-a-day desalination plant on Cayman Brac due to be ready later in 2014, Consolidated Water said.

To contact the reporter on this story: Randall Hackley in London at

To contact the editors responsible for this story: Randall Hackley at Jasmina Kelemen, Stephen Cunningham

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.