NASSAU, BAHAMAS- The Water & Sewerage Corporation’s (WSC) debt to its BISX-listed supplier, Consolidated Water, stood at $25.5 million as of March 31, 2025, down from $28.4 million at the end of 2024, with about 78 percent of the current balance classified as delinquent.
The figures were disclosed in the company’s latest filing with the U.S. Securities and Exchange. CW-Bahamas, which operates major desalination plants at Blue Hills and Windsor, has historically recovered all outstanding balances in full, including accrued interest. Nevertheless, the company acknowledged that delays in collecting payments are a recurring issue, and discussions with both WSC and the Government of The Bahamas are ongoing.
“If CW-Bahamas is unable to collect a sufficient portion of its delinquent accounts receivable,” CWCO warned, “the company may not have sufficient liquidity to meet its obligations,” or may be forced to halt revenue recognition and record additional credit loss allowances—any of which could materially impact its financial position.
The long-term water supply contracts between CW-Bahamas and WSC remain active and enforce performance guarantees. The Blue Hills and Windsor plants must supply 63.0 million and 16.8 million gallons of water per week, respectively, through to 2032 and 2033. CW-Bahamas has consistently met these obligations.
Consolidated Water reported generally solid financial performance in the first quarter of 2025, although total revenue declined 15 percent year-over-year to $33.7 million, primarily due to the completion of two major U.S. construction projects that had boosted services revenue in 2024.
However, the company’s retail, bulk, and manufacturing segments all posted revenue growth. Retail revenue rose 9 percent to $9.4 million on stronger volumes, especially in Grand Cayman. Bulk water revenue edged up 1 percent to $8.4 million, while manufacturing revenue increased 10 percent to $5.8 million.
Operations and maintenance contracts, including those tied to its U.S.-based subsidiaries PERC and REC, generated $7.7 million in revenue—up 9 percent from the prior year. The services segment overall declined 42 percent to $10.1 million, largely due to the absence of large-scale construction income.
Net income from continuing operations totaled $4.9 million, or $0.31 per diluted share, compared to $6.9 million, or $0.43 per share, in Q1 2024. Cash and cash equivalents rose to $107.9 million, with working capital of $136.2 million and minimal debt on the balance sheet.
CWCO CEO Rick McTaggart pointed to strong fundamentals across the company’s core water supply operations and confirmed that construction is expected to begin in early 2026 on a $204 million seawater desalination plant in Hawaii—a flagship project that recently passed a critical regulatory milestone.
