Water Corp owed its supplier nearly $30 million at the end of 2023

Water Corp owed its supplier nearly $30 million at the end of 2023

NASSAU, BAHAMAS — The Water and Sewerage Corporation (WSC) found itself owing nearly $27 million to its BISX-listed water supplier by the close of 2023, with approximately 80 percent of that sum labeled as “delinquent.”

In its annual year-end 10-K filing with the US Securities & Exchange Commission (SEC), BISX-listed Consolidated Water disclosed that CW-Bahamas’ accounts receivable balances, inclusive of accrued interest, stood at $26.9 million as of December 31, 2023.

Consolidated Water highlighted that about 80 percent of the $26.9 million owed at the end of 2023 was deemed “delinquent,” indicating it was three months or more past due, and acknowledged the impact on the liquidity of its Bahamian subsidiary.

“Approximately 80 percent of this December 31, 2023, accounts receivable balance was delinquent as of that date. The delay in collecting these accounts receivable has adversely impacted the liquidity of this subsidiary,” noted Consolidated Water.

The company, which employs 19 individuals in The Bahamas, stated, “From time to time (including presently), CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC. When these delays occur, we engage in discussions and meetings with representatives of the WSC and The Bahamas government, resulting in the development of payment schedules for WSC’s delinquent accounts receivable. All previous delinquent accounts receivable from the WSC, including accrued interest, were eventually paid in full. Based upon this payment history, we have not provided for a material allowance for credit losses for CW-Bahamas’ accounts receivable from the WSC as of December 31, 2023.”

Consolidated Water operates under a water supply agreement for the Windsor plant, boasting a capacity of 2.8 million gallons per day, which expires in August 2033. This agreement requires the WSC to purchase a minimum of 16.8 million gallons per week. Additionally, the company supplies water from the Blue Hills plant, its largest seawater reverse osmosis desalination facility with a capacity of 12.0 million gallons per day, under the terms of a water supply agreement with the WSC expiring in March 2032, obligating the company to provide the WSC with a minimum of 63.0 million gallons of water each week.