RT dart (@poordart)Damn TIL - i was not aware Iran's position was *this* much better than Israel and the GCC(Also desalination in Iran 3% vs 70-80% in Israel+GCC) ...

Core Insights - Consolidated Water reported a retail revenue increase of 6.6% to $33.6 million, driven by an 8.3% rise in water volume sold to a record 1.09 billion gallons and a 7% increase in customer accounts in Grand Cayman [1] - The company’s net income from continuing operations was $18.6 million, or $1.16 per diluted share, compared to $17.9 million, or $1.12 per diluted share, in 2024 [2] - Total revenue for 2025 was $132.1 million, a 1% decline from 2024, primarily due to lower services revenue and a modest decrease in bulk revenue [4] Retail Segment - Retail revenue increased by 6.6% to $33.6 million, attributed to increased water volume sales and customer accounts [1] - The growth in retail was supported by historically low rainfall and population growth in the region [1] Net Income and Earnings - Net income attributable to shareholders was $18.3 million, or $1.14 per diluted share, down from $28.2 million, or $1.77 per diluted share, the previous year [2] - The company’s gross profit for 2025 was reported at $48.4 million, with improved gross margins across all business segments [3] Services Segment - Services revenue declined to $13.5 million in 2025 from $18.6 million in 2024, primarily due to the completion of major projects and permitting delays in Hawaii [12] - The decline in services revenue was offset by a 9% increase in operations and maintenance contract revenue [13] Bulk Segment - Bulk segment revenue decreased by less than 1% in 2025, attributed to declining energy prices affecting the energy pass-through component [9] - Despite lower revenue, the bulk segment achieved higher profitability due to reduced costs and improved operational execution [10] Manufacturing Segment - Manufacturing revenue increased by 6% to $18.7 million, driven by a shift towards higher-margin products for nuclear power and municipal clients [16] - The company expanded its manufacturing facility in Florida, increasing capacity to support higher production volumes [17] Financial Position - Consolidated Water ended 2025 with $123.8 million in cash and cash equivalents, and no significant outstanding debt [19] - The company increased its quarterly dividend by 27.3% to $0.14 per share starting in Q3 2025 [19] Regulatory and Project Updates - The company received a new concession maintaining the terms of its 1990 license, with ongoing negotiations with OfReg [8] - Key milestones were achieved in the Hawaii desalination project, despite permitting delays affecting revenue recognition [5][15]

Financial Data and Key Metrics Changes - Total revenue for 2025 was $132.1 million, a slight decrease of 1% from 2024, primarily due to decreased revenue in the services segment and a modest decrease in the bulk segment [10][11] - Gross profit for 2025 was $48.4 million, representing 30% of total revenue, compared to $45.6 million or 34% of total revenue in 2024 [12] - Net income from continuing operations in 2025 was $18.6 million or $1.16 per diluted share, compared to $17.9 million or $1.12 per diluted share in 2024 [13] Business Line Data and Key Metrics Changes - Retail revenue increased by 6.6% to $33.6 million, driven by an 8.3% increase in the volume of water sold to a record 1.09 billion gallons [10][12] - Bulk segment revenue decreased less than 1% due to lower energy prices affecting the energy pass-through component of rates [11] - Services segment revenue decreased from $18.6 million in 2024 to $13.5 million in 2025, primarily due to the completion of major projects and a decline in construction revenue [11][12] Market Data and Key Metrics Changes - Tourist air arrivals in the Cayman Islands increased by 2.9% to approximately 450,000 in 2025, contributing to retail sales growth [17] - The company anticipates that construction of the Hawaii desalination project will commence later in 2025, which is expected to significantly add to revenue and earnings growth in future periods [19] Company Strategy and Development Direction - The company is focused on diversifying its business segments, including retail water operations in Grand Cayman, stable recurring revenue from bulk water, and growth potential in U.S.-based manufacturing and O&M businesses [25] - The completion of a new manufacturing facility in Florida is expected to enhance efficiency and support growth in municipal water projects [9][24] Management's Comments on Operating Environment and Future Outlook - Management noted that permitting delays for the Hawaii desalination project are common and not due to failures on the company's part, with expectations for construction to start later in the year [3][19] - The company is optimistic about the growth in retail and manufacturing segments, driven by strong demand for clean water and a solid balance sheet [25] Other Important Information - The company increased its quarterly cash dividend by 27.3% to $0.14 per share starting in the third quarter of 2025 [15] - Cash and cash equivalents totaled $123.8 million as of December 31, 2025, representing a $24.4 million increase from the previous year [14][15] Q&A Session Summary Question: What is the status of the Hawaii desalination project permit? - The permit is required from the State Historic Preservation Department and is necessary before applying for other building permits [30][34] Question: How long will it take to obtain the other permits after the historical permit is received? - Other permits are expected to be more straightforward, but exact timelines are difficult to predict [38] Question: What is the outlook for O&M revenue? - There are significant opportunities in O&M, particularly in Southern California, with competitive bids being pursued [40] Question: How much of the new water capacity from the West Bay facility is already allocated? - The company plans for a five to ten-year horizon for asset planning, with demand tapering off in wetter months [43] Question: How quickly are energy cost recovery increases reflected in bulk services? - Energy cost recovery is reflected on a monthly basis based on average fuel and electricity costs [51] Question: What is the balance between public-private opportunities versus purely public projects? - The focus is on solid municipal business opportunities, particularly in Florida, due to regulatory changes [55]

The Iran war has underscored a fundamental vulnerability of the oil-rich nations in the Persian Gulf: their reliance on desalination plants for water. Here's what to know https://t.co/0aKvEg6S5i ...

The Iran war has underscored a fundamental vulnerability of the oil-rich nations in the Persian Gulf: their reliance on desalination plants for water. Here's what to know. https://t.co/g7eUuCT1sm ...

RT Mikkel Rosenvold (@RosenvoldGeo)Attacking desalination plants is NOT a front the US wants to open. Horrible, horrible strategic decisionIran is 3% dependent on desalination - US allies in the region at 40-90% https://t.co/CtJEL0Vw8i ...

RT THE ISLANDER (@IslanderWORLD)Eight of the ten largest desalination plants on earth sit on the Arabian Peninsula coast. Together the Gulf states account for roughly sixty percent of global desalination capacity. A hundred million people drink what these facilities manufacture from seawater every single day. Kuwait gets ninety percent of its drinking water from desalination. Oman eighty-six. Saudi Arabia seventy. Without these plants, the most powerful petroleum states on earth become uninhabitable within ...

RT DD Geopolitics (@DD_Geopolitics)🚨🇮🇷🇺🇸 The U.S. struck Iranian desalination infrastructure. Strategic implications:This map shows every desalination plant in the Persian Gulf. Gulf state water dependency on desalination:→ Kuwait: ~100%→ Qatar: ~99%→ Bahrain: ~97%→ UAE: ~90%→ Saudi Arabia: ~70%All plants are coastal, fixed, unarmored, and within range of Iranian SRBMs (Fateh-110, 300 km), MRBMs, and low-altitude cruise missiles (Quds-1, Paveh) that fly below standard radar detection thresholds.These nation ...

An Iranian drone attack damaged a desalination plant in Bahrain, bringing the war to the oil-rich Persian Gulf’s most strategic resource: drinking water https://t.co/I1Wbd1bqTB ...

RT Clash Report (@clashreport)Bahrain says an Iranian strike damaged a desalination plant, marking a new phase of the conflict targeting water infrastructure.Gulf countries rely heavily on desalination.Qatar nearly 100%, Kuwait and Bahrain ~90%, Oman 86%, Saudi Arabia 70%.The strike came after U.S./Israeli airstrikes targeted Iran's desalination plant on Qeshm Island. ...