Seven Seas Water Announces Curaçao Contract Update
July 01 2019 - 7:00AM
Business Wire
Seven Seas Water, an operating segment of AquaVenture Holdings
Limited (NYSE: WAAS) (“AquaVenture” or the “Company”), a leader in
Water-as-a-Service® (“WAAS®”) solutions, today announced that it
has received a formal notice from Curaçao Refinery Utilities B.V.
(“CRU”) that it is exercising its right to purchase the Company’s
desalination facilities pursuant to the existing water supply
agreement.
The existing water supply agreement with CRU began in December
2008, with the Company providing water from a desalination plant
with an initial design capacity of 0.5 million gallons per day
under a 5-year contract. This agreement has been amended several
times, resulting in both expanded water production to the current
design capacity of 4.9 million gallons per day and an extended
contract expiration date of December 31, 2019. In addition, the
contract expiration date will be extended to December 31, 2022 if
CRU’s contract with Refineria di Kòrsou (“RdK”), the owner of the
refinery, is extended as a result of RdK’s negotiations with the
current operator of the refinery, Petróleos de Venezuela, S.A
(PDVSA).
The contractual buy-out right requires payment to be made at the
contract expiration date. The applicable buy-out amount, if
consummated, will be either $3.5 million or, if CRU’s contract with
RdK is extended as mentioned above, $2.5 million.
Olaf N. Krohg, Seven Seas Water’s CEO, commented: “We value the
fruitful and constructive relationship that we have had with CRU
over the last decade. During this time, we have regularly increased
our water production to meet CRU’s water needs. According to
published reports, RdK is also actively considering proposals from
other parties to operate its refinery. We are actively working with
CRU and RdK and remain open to constructively engaging with any
future operator of the refinery, and will continue to deliver high
levels of service through the duration of our contract.”
About AquaVenture
AquaVenture is a multinational provider of WAAS® solutions that
provide customers a reliable and cost-effective source of clean
drinking and process water primarily under long-term contracts that
minimize capital investment by the customer. AquaVenture is
composed of two operating platforms: Quench, a leading provider of
filtered water systems and related services with over 140,000 units
installed at institutional and commercial customer locations across
the U.S. and Canada; and Seven Seas Water, a multinational provider
of desalination and wastewater treatment solutions, providing more
than 8.5 billion gallons of potable, high purity industrial grade
and ultra-pure water per year to governmental, municipal,
industrial and hospitality customers.
About Seven Seas Water
Seven Seas Water offers WAAS® solutions by providing outsourced
desalination, wastewater treatment and water reuse solutions for
governmental, municipal (including utility districts), industrial,
property developer and hospitality customers. Our desalination
solutions utilize seawater reverse osmosis and other purification
technologies to produce potable and high purity industrial process
water in high volumes for customers operating in regions with
limited access to potable water. Our wastewater treatment and water
reuse solutions include scalable modular treatment plants,
field-erected treatment plants and temporary bypass plants that are
used by our customers to treat and convert wastewater into effluent
or reclaimed water prior to being released back into the
environment.
Safe Harbor Statement
This release contains forward-looking statements that are made
pursuant to the safe harbor provisions of Section 27A of the
Securities Act of 1933 and of Section 21E of the Securities
Exchange Act of 1934. The forward-looking statements in this
release do not constitute guarantees of future performance.
Investors are cautioned that statements in this press release
regarding management’s future expectations, beliefs, intentions,
goals, strategies, plans or prospects, including, without
limitation, statements relating to AquaVenture’s ability to
continue its contractual relationship with CRU; its ability to work
constructively with CRU, RdK or any future operator of the
refinery; and its expectations regarding the buy-out price under
the water supply agreement; and its expectations regarding the
potential impacts of the buy out on its performance, growth, cash
flows and margins, constitute forward-looking statements.
Forward-looking statements can be identified by terminology such as
“anticipate,” “believe,” “could,” “could increase the likelihood,”
“estimate,” “expect,” “intend,” “is planned,” “may,” “should,”
“will,” “will enable,” “would be expected,” “look forward,” “may
provide,” “would” or similar terms, variations of such terms or the
negative of those terms. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors including
those risks, uncertainties and factors detailed in AquaVenture’s
filings with the Securities and Exchange Commission. As a result of
such risks, uncertainties and factors, AquaVenture’s actual results
may differ materially from any future results, performance or
achievements discussed in or implied by the forward-looking
statements contained herein. AquaVenture is providing the
information in this press release as of this date and assumes no
obligations to update the information included in this press
release or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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