Profile: Consolidated Water Co Ltd (CWCO.O)
27 May 2016
Consolidated Water Co. Ltd. develops and operates seawater desalination plants (that utilize reverse osmosis technology) and water distribution systems in areas where naturally occurring supplies of potable water are scarce or non-existent. The Company operates in three segments: retail water operations, bulk water operations and services operations. Through its subsidiaries and affiliates, the Company provides various services to its customers in the Cayman Islands, The Bahamas, Belize, the British Virgin Islands and Indonesia.
Retail Water Operations
The Company's retail water operations segment produces and supplies water to end users, including residential, commercial and government customers. The Company sells water through its retail operations to a range of residential, commercial and government customers through its subsidiary Cayman Water Company Limited (Cayman Water). The Company's retail operations in the Cayman Islands produce potable water at over four reverse osmosis seawater conversion plants in Grand Cayman located at its Abel Castillo Water Works (ACWW), Britannia and West Bay sites. It owns the land for its ACWW and West Bay plants. The production capacity of over two plants located at ACWW is approximately 2.2 million gallons of water per day. The production capacity of the Britannia plant is over 715,000 gallons of water per day. The production capacity of the West Bay plant is approximately 910,000 gallons of water per day.
Bulk Water Operations
The Company's bulk water operations segment produces potable water from seawater and sells this water to government and private customers. Through its subsidiary, Ocean Conversion (Cayman) Limited (OC-Cayman), the Company provides bulk water on a take-or-pay basis to the Water Authority-Cayman (WAC), a government owned utility and regulatory agency, under various agreements. The WAC in turn distributes that water to properties in the parts of Grand Cayman that are outside of its retail license area. The water it sells to the WAC is produced at approximately three reverse osmosis seawater conversion plants in Grand Cayman that are owned by the WAC but designed, built and operated by OC-Cayman, including the Red Gate, North Sound and North Side Water Works plants, which have production capacities of approximately 1.3 million, over 1.6 million and approximately 2.4 million gallons of water per day. The plants that it operates for the WAC are located on land owned by the WAC. In Belize, the Company sells bulk water through its subsidiary, Consolidated Water (Belize) Limited (CW-Belize).
The Company owns the reverse osmosis seawater conversion plant in Belize and leases the land on which its plant is located. The production capacity of the plant is approximately 600,000 gallons of water per day. In Ambergris Caye, Belize the Company provides water to Belize Water Services Ltd. (BWSL), a government controlled entity, which distributes the water through its own pipeline system to residential, commercial and tourist properties. BWSL distributes its water primarily to residential properties, small hotels and businesses that serve the tourist market. The Company sells bulk water in The Bahamas to the Water and Sewerage Corporation of The Bahamas (WSC) and to a private resort on Bimini through its subsidiary, Consolidated Water (Bahamas) Ltd. (CW-Bahamas). It supplies bulk water in The Bahamas from its Windsor, Blue Hills and Bimini plants. The Company supplies water from the Blue Hills plant, its seawater conversion facility with a capacity of over 12.0 million gallons per day. The Bimini plant has a capacity of approximately 115,000 gallons per day and supplies water to a private resort. The high-pressure pumps at its Windsor and Blue Hills plants in the Bahamas are diesel engine-driven. It provides bulk water to the WSC, which distributes the water through its own pipeline system to residential, commercial and tourist properties on the Island of New Providence.
The Company's services operations segment provides engineering and management services, including designing and constructing desalination plants, and managing and operating plants owned by affiliated companies. The Company provides design, engineering and construction services for desalination projects through DesalCo Limited (DesalCo), which is an original equipment manufacturer of reverse osmosis seawater desalination plants for the Company. DesalCo also provides management services to the Company's affiliates. The Company's engineering department also conducts research and development. Aquilex, Inc., its the United States subsidiary located in Coral Springs, Florida, provides financial, engineering and supply chain support services to its operating segments.
The Company competes with GE Water, Veolia, IDE Technologies, GS Inima, OHL Inima and Biwater PLC.
Consolidated Water Co Ltd
TRAFALGAR PL, WEST BAY RD
GRAND CAYMAN 1-1102