Christ desalination contracts still hitting Ovivo figures
Desalination contracts had a significant unfavourable effect on consolidated results for Canada's GLV Inc in the first quarter of fiscal 2012 and the last quarter of fiscal 2011.The company took over the desalination and water treatment company Christ Water Technology (CWT) in 2009 and rebranded all these operations under the name Ovivo.
For the first quarter of fiscal 2012, GLV reported on 7 June 2012 that its overall operations used cash flows of Can$ 7.5 million (US$ 7.3 million) compared with Can$ 30.6 million (US$ 29.8 million) for the same quarter of fiscal 2011. This fall was due mainly to the negative effect of payments required for further completion of certain contracts in the desalination and energy segments.
The company says that new contracts have been won by the desalination division during the quarter that meet GLV's set profitability and risk criteria.
"Despite the major disappointment in the desalination segment stemming from certain CWT contracts, implementing more stringent project selection criteria and project management processes during fiscal 2010 and 2011 allowed the corporation to maintain revenues and operating profitability at the same levels as the first quarter of last year," noted president and CEO Richard Verreault. "In addition, management's continued commitment to managing projects rigorously positions the corporation for more consistent profitability and growth perspectives to pursue long-term development."