Profile: Consolidated Water Co Ltd (CWCO.O)
Consolidated Water Co. Ltd., incorporated in1973, develops and operates seawater desalination plants and water distribution systems. The Company operates in three segments: retail water operations, bulk water operations and services operations. Through the Company's subsidiaries and affiliates, the Company operates 14reverse osmosis desalination plants and provides the services to its customers in the Cayman Islands, the Bahamas, Belize, and the British Virgin Islands. Its retail water operations supply water to end-users, including residential, commercial and government customers. Through The Company's bulk water operations it supplies water to government owned distributors. Its services operations provide engineering and management services. The Company conducts its operations in the Cayman Islands, The Bahamas, the British Virgin Islands, Belize, and the United States through the principal operating subsidiaries and affiliates, which include Cayman Water Company Limited (Cayman Water), Ocean Conversion (Cayman) Limited (OC-Cayman), Consolidated Water (Bahamas) Limited (CW-Bahamas), Consolidated Water (Belize) Limited (CW-Belize), Aquilex, Inc., Ocean Conversion (BVI) Ltd. (OC-BVI), DesalCo Limited (DesalCo), Consolidated Water (Bermuda) Limited (CW-Bermuda) and Consolidated Water Cooperatief, U.A. (CW-Coop).
Cayman Water operates under an exclusive retail license granted by the Cayman Islands government to provide water to customers within a prescribed service area on Grand Cayman that includes the Seven Mile Beach and West Bay areas. OC-Cayman provides bulk water under various licenses and agreements to the Water Authority-Cayman, a government-owned utility and regulatory agency, which distributes the water to properties located outside its retail license service area in Grand Cayman. OC-Cayman operates four desalination plants owned by the Water Authority-Cayman. The Company owns a 90.9% interest in CW-Bahamas, which provides bulk water under contracts to the Water and Sewerage Corporation of The Bahamas, a government agency. CW-Bahamas owns and operates its desalination plants.
CW-Belize owns and operates one desalination plant and has a contract to provide bulk water to Belize Water Services Ltd., a water distributor that serves residential, commercial and tourist properties in Ambergris Caye, Belize. Aquilex, Inc. provides financial, engineering and supply chain management support services to its subsidiaries and affiliates. The Company owns 50% interest of its affiliate, OC-BVI, which sells bulk water to the Government of The British Virgin Islands Water and Sewerage Department. DesalCo provides management, engineering and construction services for desalination projects. CW-Coop is a wholly owned subsidiary of the Company.
Retail Water Operations
This business in the Cayman Islands produces and supplies water to end-users, including residential, commercial and government customers. The Company sells water through its retail operations to a variety of residential and commercial customers Cayman Water. The Company’s retail operations in the Cayman Islands produces potable water at four reverse osmosis seawater conversion plants in Grand Cayman located at its Abel Castillo Water Works (ACWW), Britannia and West Bay sites. As of December 31, 2011, the production capacity of the two plants located at ACWW is 2.2 million United Sates gallons of water per day. The production capacity of the Britannia plant is 715,000 United Sates gallons of water per day. The production capacity of the West Bay plant is 910,000 United Sates gallons of water per day. The Company’s pipeline system in the Cayman Islands covers the Seven Mile Beach and West Bay areas of Grand Cayman and consists of approximately 71 miles of polyvinyl chloride and polyethylene pipeline.
Bulk Water Operations
During the year ended December 31, 2011, the Company’s bulk water operations accounted for approximately 56% of its consolidated revenues and were consisted of businesses in the Cayman Islands, The Bahamas and Belize. The Company sells bulk water in the Cayman Islands through OC-Cayman. The Company operates and sells water from four reverse osmosis seawater conversion plants in Grand Cayman that are owned by the Water Authority-Cayman: the Red Gate, Lower Valley, North Sound and North Side Water Works plants, which had production capacities of approximately 1.3 million, 1.1 million, 1.6 million and 2.4 million United Sates gallons of water per day, respectively as of December 31, 2011. In Belize, the Company sells bulk water through CW-Belize.
The Company owns the reverse osmosis seawater conversion plant in Belize and lease the land on which its plant is located from the Belize government. As of December 31, 2011, the production capacity of the plant is 550,000 United Sates gallons of water per day. In The Bahamas, the Company sells bulk water through CW-Bahamas. As of December 31, 2011, it supplied bulk water in The Bahamas from its Windsor, Blue Hills and Bimini plants. The Company supplies water from its Windsor plant, which had a capacity of 3.1 million United Sates gallons per day. The Company increased the production capacity of the Blue Hills plant to 12 million United Sates gallons per day during 2011. It provides bulk water to the Water and Sewerage Corporation of The Bahamas (WSC), which distributes the water through its own pipeline system to residential, commercial and tourist properties on the Island of New Providence.
During 2011, the Company’s services operations accounted for approximately 2% of its consolidated revenues and were consisted of businesses providing services in the Cayman Islands, The Bahamas, the British Virgin Islands and Bermuda. These businesses provide engineering and management services, including designing and constructing desalination plants, and managing and operating plants owned by other companies. The Company provides design, engineering and construction services for desalination projects through DesalCo. DesalCo is an original equipment manufacturer of reverse osmosis seawater desalination plants for the Company. DesalCo also provides management services to its affiliates.
The Company competes with GE Water, Veolia, IDE, OHL Inima and Biwate.
Consolidated Water Co Ltd
Windward Three, 4th Floor
West Bay Road, Regatta Office Pa
PO Box 1114
GRAND CAYMAN 1-1102