GEORGE TOWN, Cayman Islands, June 24, 2026 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading designer, builder and operator of advanced water treatment plants, today announced that its Cayman Islands retail water utility, Cayman Water Company Limited, has received a new license from the Utility Regulation and Competition Office of the Cayman Islands (“OfReg”) to provide potable water service to customers in its licensed service areas on Grand Cayman.
The new license establishes a modern, long-term regulatory framework for the company’s regulated retail water operations following an extended period of negotiations with OfReg and its predecessor.
The license has a stated commencement date of August 1, 2026, and, subject to its terms and conditions, continues for a period of 25 years from that date. Under the license, Cayman Water retains the exclusive right to produce (from seawater), distribute and sell potable water within its licensed service area, which includes Seven Mile Beach and West Bay, two of the three most populated areas of Grand Cayman.
“The granting of this new exclusive retail water license represents a significant milestone for Consolidated Water and our Grand Cayman customers,” said Consolidated Water CEO Rick McTaggart. “The license establishes a modern regulatory framework under the Islands’ current laws and regulations. Most importantly it preserves our exclusive right to produce, distribute and sell potable water within our licensed service area, which supports our continued investment in world-class water infrastructure to serve our customers.”
“This new license is a win for our customers and the company,” continued McTaggart. “Lower base water rates and energy cost recovery charges under this new license will provide an approximately 6.5% reduction in the cost of water per gallon to our customers compared with the prior license. In turn, the company has gained the certainty of a new, modern license for the next 25 years which incorporates an annual water rate adjustment mechanism that has been retained from our previous license.”
Cayman Water has provided retail water service in Grand Cayman since 1973. As previously disclosed, the company received a new concession from the Cayman Islands government in February 2025 that authorized and maintained the terms of its previous license while Cayman Water and OfReg continued negotiations for a new license. The new license sets forth base rates, monthly meter rental fees and certain other rates and charges, and provides for annual adjustments to base rates and certain fees, effective each July 1 following the license commencement date, in accordance with the rate cap adjustment mechanism described in the license and subject to OfReg verification and approval requirements.
Based on the company’s pro forma estimates, if the base rates, energy cost charges and monthly meter rental fees contemplated by the new license had been applied to the company’s historical volumes, historical energy cost and meter base, the company estimates that its revenues would have been approximately $2.1 million, $1.9 million and $0.6 million lower for 2024, 2025 and the first quarter of 2026, respectively, than under the prior rate structure. These estimates are presented for illustrative purposes only; are based on historical volumes, historical energy cost, historical meter base and other assumptions; do not reflect statutory fee or regulatory fee charges that have not yet been prescribed; and are not necessarily indicative of the revenues or results of operations that the company will achieve under the new license.
The new license comes as Grand Cayman continues to experience strong tourism momentum, a key demand driver for retail water sales. According to a recent Cayman Islands Government press release, The Cayman Islands recorded its best month ever for visitation in March 2026, welcoming 64,213 stayover visitors and surpassing 60,000 stayover visitors in a single month for the first time in recorded history. Total visitation in March, including stayover visitors and cruise passengers, reached 221,731, up 12.6% year over year. April 2026 also set a new record for April stayover tourism, with 47,884 visitors, up 12% from April 2025 and 3.9% above the prior April record set in 2019.
Consolidated Water typically sells more water during the first half of the year, when tourism activity is higher and weather conditions are generally drier. A recent Cayman Compass article noted that Cayman could experience hotter temperatures and potentially reduced rainfall during the 2026 wet season. Management believes the combination of resilient tourism demand, expanding business activity in Grand Cayman and potentially drier weather conditions supports a more favorable operating environment for retail water demand throughout the remainder of the year.
Further details are available in the Form 8-K Consolidated Water has filed with the U.S. Securities and Exchange Commission, which is accessible from the Investors section of the company’s website.
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates advanced water treatment plants and water distribution systems. The company designs, constructs and operates seawater desalination facilities in the Cayman Islands, The Bahamas and the British Virgin Islands, and designs, constructs and operates water treatment and reuse facilities in the United States.
The company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment.
For more information, visit cwco.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "intend", "expect", "should", "will" or similar expressions. On June 18, 2026, OfReg granted Cayman Water a new license (the “License”) to produce and distribute potable water within the License Area. This press release contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995), including statements regarding the Company’s expectations, beliefs and assumptions concerning the License; the anticipated benefits of the License; the License’s expected effect on the Company’s business, revenues, results of operations, financial condition and cash flows; and the Company’s long-term goals, plans and prospects. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to (i) continued acceptance of the company's products and services in the marketplace; (ii) changes in its relationships with the governments of the jurisdictions in which it operates; (iii) risks relating to the implementation and interpretation of the License; future regulatory actions or approvals; changes in demand, consumption levels, operating costs, energy costs, weather, and economic conditions in the Cayman Islands; the Company’s ability to satisfy its obligations under the License and the other risks described in the Company’s filings with the Securities and Exchange Commission; and (iv) various other risks such as economic, operational, and industry-specific risks, as detailed in the company's periodic report filings with the Securities and Exchange Commission (“SEC”). For more information about risks and uncertainties associated with the company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the company’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting the company’s Secretary at the company’s executive offices or at the “Investors – SEC Filings” page of the company’s website at ir.cwco.com/docs. Except as otherwise required by law, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
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