Despite a drop in overall revenue, Consolidated Water Co Ltd (CWCO) sees promising growth in key segments and prepares for future expansion with the Hawaii desalination project.
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the revenue flow for the Hawaii desalination project and when construction is expected to start?
A: The Hawaii project has a $204 million contract value, with $147 million designated for design and construction. Of this, $27 million is fixed, while $120 million is subject to inflation adjustments. Revenue recognition is based on costs incurred, and we haven't recognized 10% of the revenue yet. Construction is expected to start in the first quarter of 2026, pending permit approvals. - Rick McTaggart, CEO and David Saznet, CFO.
Q: What is the status of the permitting process for the Hawaii project, and who is responsible for obtaining them?
A: The permitting responsibilities are shared between us and the client. Some permits, like archaeological studies, are the client's responsibility, while building permits are ours. The process is collaborative, but some permits, particularly archaeological ones, are taking longer than expected due to slow-moving agencies. - Rick McTaggart, CEO.
Q: With the expansion of the West Bay facility, how do you see the retail water sales trend in Grand Cayman?
A: The expansion is driven by permanent population growth and increased business activity, not just seasonal demand. New developments like a hospital and office buildings are contributing to higher base water sales, indicating a solid increase in volumes. - Rick McTaggart, CEO.
Q: Can you elaborate on the smaller projects worth $20 million and their expected timeline?
A: Two of the three projects are under contract, with the third expected soon. These smaller projects will likely span over 12 months, with revenue realization starting in the second half of this year and continuing into early 2026. - Rick McTaggart, CEO and David Saznet, CFO.
Q: Are there any plans to expand into the Asia Pacific region following the Hawaii project?
A: Currently, we are not pursuing opportunities in the Asia Pacific region. Our focus remains on opportunities closer to home, particularly in Florida, where population growth is driving demand for new treatment plants. - Rick McTaggart, CEO.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.