Consolidated Water Co. Ltd. (NASDAQ:CWCO) Q4 2022 Earnings Conference Call March 31, 2023 11:00 AM ET
Company Participants
Rick McTaggart - CEO
David Sasnett - CFO
Conference Call Participants
Gerard Sweeney - ROTH Capital Partners
John Bair - Ascend Wealth Advisors
Operator
Good morning, and thank you for joining us today to discuss Consolidated Water Company's Full Year 2022 Results. Hosting the call today is the Chief Executive Officer, Consolidated Water Company, Rick McTaggart; and the company's Chief Financial Officer, David Sasnett. Following their remarks, we will open the call to your questions. [Operator Instructions]
Before we conclude today's call, I'll provide some important cautions regarding the forward-looking statements made by management during the call. I'd like to remind everyone that today's call is being recorded, and it will be made available for telecom replay per the instructions in yesterday's press release, which is available in the Investor Relations section of the company's website.
Now, I'd like to turn the call over to Consolidated Water Company's CEO, Rick McTaggart. Sir, please go ahead.
Rick McTaggart
Thank you, Joe, and good morning, everyone. Thanks for joining us today. As you saw in our earnings release issued yesterday afternoon, we reported a 41% increase in our revenue to a record $94.1 million for the full year of 2022. We generated increased revenues across all four of our business segments last year.
Our retail water revenues benefited from a 12.5% increase in the volume of water sold in Grand Cayman and this large increase was due to the return of tourist activity to the Cayman Islands.
Our Services segment revenue increased by $15 million with most of this due to the progress of PERC Water on the construction of a new $82 million advanced water treatment plant in Goodyear, Arizona. We announced this contract in May of last year. The project is progressing as planned and we anticipate recognizing significant additional revenue from this project this year and until the construction is completed in mid-2024.
Also in Q4, we broke ground on the new desalination plant that we designed and are presently constructing on Grand Cayman under a 10-year design build and operate contract with the Water Authority of the Cayman Islands. We also announced this project in May of last year.
The revenue we recognized from this contract also contributed to the year-over-year increase in Service segment revenues. We expect the revenue generated over the approximate 11-year term of this contract to total about $20 million based on January 2022 values. We anticipate the majority of this $20 million to be generated by the construction of the desalination plant during the first 18 months, with the rest earned from the operation of the plant over the following 10 years. So that's how we get to the 11.5-year term.