Consolidated Water Co. Ltd. (NASDAQ: CWCO) has reported its financial results for the third quarter ended September 30, 2024. The company's total revenue declined significantly by 33% to $33.4 million, primarily due to the completion of two large construction projects in 2023. Despite the decline in total revenue, there were notable changes in specific segments.
Retail revenue increased by 5% to $7.6 million, driven by higher sales volumes, with the volume of retail water sold in the company’s utility service area in Grand Cayman increasing by 4.2%.
Bulk revenue also saw an increase of 3% to $8.8 million, attributed to the commencement of the operating and maintenance contract for the new Red Gate desalination plant for the Water Authority of the Cayman Islands and an amendment of the company’s North Sound contract.
Manufacturing revenue, however, decreased by $362,000 to $4.4 million compared to the same period in 2023.
Services revenue declined by 57% to $12.7 million, primarily due to a $20.6 million decline in construction revenue, partially offset by a $2.5 million increase in recurring operations and maintenance (O&M) revenue and a $1.3 million increase in design and consulting revenue.
The company reported net income from continuing operations attributable to company stockholders of $5.0 million or $0.31 per diluted share, down from $8.8 million or $0.55 per diluted share in the third quarter of 2023. Meanwhile, net income including discontinued operations amounted to $4.5 million or $0.28 per diluted share, compared to $8.6 million or $0.54 per diluted share in the third quarter of 2023.
Consolidated Water Co. Ltd. ended the quarter with cash and cash equivalents totaling $104.9 million and working capital of $133.9 million.
Looking ahead, the company remains positive about the future, citing growing water scarcity and the rising demand for specialized water treatment solutions. It also highlighted its strong balance sheet, which positions it to invest in new long-term projects and potential acquisitions.
In the first nine months of 2024, the company's revenue totaled $105.6 million, down 17% compared to the same period in 2023. Despite the decline in revenue, the company reported a net income attributable to consolidated water stockholders of $26.8 million or $1.68 per fully diluted share, up from $19.7 million or $1.24 per fully diluted share in the same period of 2023, mainly due to a $12.1 million gain on the sale of land and project documentation in Mexico during the second quarter of 2024.
Following these announcements, the company's shares moved 4.9%, and are now trading at a price of $25.83. If you want to know more, read the company's complete 8-K report here.
