NASSAU, BAHAMAS — The Water & Sewerage Corporation (WSC) debt to its main water supplier was just over $15 million at the end of September, the company revealed, down $6.3 million from the start of the year.
BISX-listed Consolidated Water in its latest 10-Q (quarterly) filing with the Securities & Exchange Commission (SEC) noted that as of September 30, 2022, CW-Bahamas’ accounts receivable from the WSC amounted to $15.2 million.
It read: “As December 31, 2021, CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the Water and Sewerage Corporation of The Bahamas (“WSC”) amounted to $21.5 million.
“From time to time, CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC. When these delays occur, the Company holds discussions and meetings with representatives of the WSC and The Bahamas government, and as a result, payment schedules are developed for WSC’s delinquent accounts receivable.”
It continued: “All previous delinquent accounts receivable from the WSC, including accrued interest thereon, were eventually paid in full. Based upon this payment history, CW-Bahamas has never been required to provide an allowance for doubtful accounts for any of its accounts receivable, despite the periodic accumulation of significant delinquent balances.”
The company noted that back in February its Bahamian subsidiary received correspondence from the Ministry of Finance of the Government of the Bahamas that set out a payment schedule providing for the gradual reduction over the course of 2022 of the CW-Bahamas’ delinquent accounts receivable due from the WSC.
“Such correspondence also indicated that the Government intends to return all of CW- Bahamas’ accounts receivable from the WSC to current status,” the company said.
The Cayman-based company in its third quarter results for the nine months ended September 30 reported that total revenue increased 53 percent to $25.1 million. The increase was primarily driven by increases of $1.0 million in the retail segment, $1.8 million in the bulk segment, $5.5 million in the services segment, and $291,000 in the manufacturing segment.
The increase in retail revenue reflected a 14 percent increase in the volume of water sold. The retail revenue also increased as a result of higher energy costs that increased the energy pass-through component of the company’s water rates, as well as a more favorable rate mix.
The increase in bulk segment revenue was attributable to an increase in energy costs for CW-Bahamas, which increased the energy pass-through component of CW-Bahamas’ rates.
