CARIBBEAN UTILITIES COMPANY, LTD. ("CUC" or the "Company") CUC ADVANCES FUEL EFFICIENCY AND LONG-TERM INVESTMENT WITH STRONG Q3 2026 PERFORMANCE

Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange under the trading symbol "CUP.U" (all figures are in United States Dollars). 

CUC delivered stable results during the three months ended September 30, 2026 ("Q3 2026" or "Third Quarter 2026"), with net earnings improving over the previous period. Alongside its solid financial performance, the Company continued to prioritise customer affordability and the creation of sustainable, long-term value for customers, shareholders and the communities it serves.

GEORGE TOWN, Cayman Islands, Nov. 3, 2026 /CNW/ -- CUC ADVANCES FUEL EFFICIENCY AND LONG-TERM INVESTMENT WITH STRONG Q3 2026 PERFORMANCE

Fuel Cost Charge Illustration

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Caribbean Utilities Company, Ltd Interim Results for Q3 2026

• Fuel cost savings continue to be realised for customers, with a year-to-date fuel cost savings of $9.9 million.
• Net earnings for Q3 2026 increased by $1.4 million when compared to Q3 2025 driven by increase in kilowatt sales, and lower depreciation expense.
• CUC awarded Platinum status, the highest level of recognition in the Investors in People Framework.
• Successful implementation & further extension of the Cayman Islands Government fuel cost relief programme to offer cost stability to customers.
• Largest private placement secured in the Company's history with a record US$160 million of Senior Unsecured Notes. 
• Publication of the Company's 2026 Sustainability Report.
• Dividend yield remained an important driver of investor value, with an annualized dividend yield of 5.4%, supported by consistent quarterly dividend declarations.

Mr. Richard Hew, CEO said: "CUC continues to achieve strong organisational outcomes in 2026, while maintaining a clear focus on the priorities that matter most to our customers: affordability and reliability. In a year marked by fuel price volatility, the need to accelerate energy efficiency and transition has become increasingly important. As we move through the remainder of 2026, we remain committed to advancing initiatives, including utility-scale solar and battery storage, that support a more affordable, reliable and sustainable energy future for Grand Cayman."

Third Quarter performance: Net earnings for Q3 2026 were $17.5 million, a $1.4 million increase from net earnings of $16.1 million for Q3 2025. The improvement was driven by 4% increase in kilowatt sales, 2% base rate increase effective June 1, 2026, and lower depreciation expense following the approved extension of the useful lives of certain generating units. Despite less favourable weather conditions during the quarter, electricity sales benefited from ongoing residential and commercial development and broader economic activity across Grand Cayman. After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for Q3 2026 were $17.4million or $0.41 per Class A Ordinary Share, as compared to $16.0 million or $0.38 per Class A Ordinary Share for Q3 2025.

Net earnings for the nine months ended September 30, 2026, were $39.8 million, a $4.6 million increase from net earnings of $35.2 million for the nine months ended September 30, 2025. After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for the nine months ended September 30, 2026, were $39.4 million, or $0.93 per Class A Ordinary Share, as compared to $34.8 million, or $0.83 per Class A Ordinary Shares for the nine months ended September 30, 2025. The Company's earnings growth reflects the Company's ongoing efforts to improve efficiency and strengthen operational performance. Following softer sales at the start of the year, the Company saw a rebound in Q3, bringing year-to-date growth to 2%, up from flat growth at the end of Q2 2026. For more information on CUC's Quarterly and Annual Results, please visit www.cuc-cayman.com.

Third Quarter 2026 performance summary

($ thousands, except Earnings Per Share, Dividends Paid and where otherwise indicated)
	Three Months Ended September 30, 2026	Three Months Ended September 30, 2025	Nine Months Ended September 30, 2026	Nine Months Ended September 30, 2025	Change	% Change
Electricity Sales Revenues	37,585	35,661	101,148	96,453	4,695	5 %
Fuel Factor	59,282	37,420	129,136	103,377	25,759	25 %
Renewables	1,662	1,701	4,459	4,500	(41)	(1 %)
Z-Factor^1	1,688	1,155	4,117	4,119	(2)	-
Total Operating Revenues	100,217	75,937	238,860	208,449	30,411	15 %
Power Generation^2	62,899	40,551	139,380	112,025	27,355	24 %
Depreciation	10,757	12,071	32,159	37,473	(5,314)	(14 %)
Other Expenses	9,477	7,809	28,788	25,801	2,987	12 %
Total Operating Expenses	83,133	60,431	200,327	175,299	25,028	14 %
Net Earnings for the Period	17,511	16,120	39,758	35,178	4,580	13 %
Cash Flow related to Operating Activities	27,371	25,529	61,658	66,186	(4,528)	(7 %)
Per Class A Ordinary Share:
Earnings Per Share (EPS)	0.41	0.38	0.93	0.83	0.10	12 %
Dividends Paid	0.200	0.190	0.590	0.565	0.025	4 %

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¹ The Z-Factor mechanism is designed to recover expenses and investments that are outside of the T&D Licence regular rate setting process. The expense or investment is recovered through a Z-Factor rate surcharge. Beginning Quarter Four 2024, projects with approved Z-Factor mechanism were completed and the applicable revenue is being accrued to Regulatory Assets pending approval of the Z-Factor Rate by the regulator.

² All amounts from Fuel Factor and Renewables revenues are included within the Power Generation expense as they are passed through to customers without mark-up as a per kWh charge.

Successful Completion of Record US$160 Million Private Placement: During the quarter, CUC successfully completed a US$160 million private placement of Senior Unsecured Notes with institutional investors, the largest private placement in the Company's history. The financing will support CUC's continued investment in grid modernisation and system resilience of Grand Cayman's electricity infrastructure.

The financing includes an initial drawdown of US$100 million on August 19, 2026, with an additional US$60 million delayed-draw facility available on May 12, 2027. Of the initial funding, US$30 million will be issued as Senior Unsecured Green Notes under the Company's Green Financing Framework.

Continued customer affordability through Fuel Cost savings: CUC continued to deliver fuel cost savings for customers during Third Quarter 2026. Net fuel efficiency improved to 19.69 kWh/IG in third Quarter 2026, compared with 19.25 kWh/IG in the third quarter of 2025. The implementation of the battery energy storage systems ("BESS") and life cycle upgrade ("LCU") projects enabled the Company to reduce thermal spinning reserve requirements by up to 50%, contributing to lower overall fuel consumption.

During the third quarter of 2026, the Company realised estimated fuel savings of approximately 0.8 million IG, or 6.45%, representing an estimated $4.2 million reduction in fuel costs. For the nine months ended September 30, 2026, estimated fuel savings totalled approximately 2.0 million IG, equivalent to approximately $9.9 million in fuel costs. Fuel cost savings during Q3 2026 translated into average savings of US$118.45 per customer for the quarter.

These savings are passed directly on to customers, supporting the Company's continued focus on improving affordability while maintaining reliable electricity service .

During Third Quarter 2026, the Cayman Islands Government announced the continuation of its fuel cost relief programme through December 31, 2026. The programme continues to provide fuel cost relief and stability to customers across Grand Cayman, with CUC supporting its implementation for all eligible customers.

Looking beyond near-term cost relief, CUC continues to advocate for Grand Cayman's energy transition, including the introduction of utility-scale solar and liquefied natural gas as a transitional fuel. These initiatives have the potential to deliver longer-term cost savings while reducing Grand Cayman's reliance on imported fuel and supporting a more sustainable and diversified energy future.

Release of 2026 Sustainability Report: In September 2026, the Company released its 2026 Sustainability Report, reflecting CUC's ongoing commitment to sustainability, resilience and responsible corporate governance.

Key highlights include progress toward enhancing grid resiliency through infrastructure investments, ongoing deployment of energy storage solutions, support for renewable energy integration, the issuance of CUC's inaugural Green Finance Report and the successful awarding of CUC with Platinum status through the Investors in People ("IIP") framework.

Successful awarding of Platinum status through Investors in People Framework: The Company is proud to announce that it has achieved IIP Platinum accreditation, the highest level of recognition awarded by the internationally renowned people management and workplace improvement organisation. This significant achievement reflects CUC's long-standing commitment to investing in its employees, fostering a positive workplace culture, and developing future leaders.

For more information on CUC's Quarterly and Annual Results, please visit www.cuc-cayman.com.

CUC's Third Quarter 2026 results and related Management's Discussion and Analysis ("MD&A") are attached to this release and incorporated by reference. The MD&A section of this report contains a discussion of CUC's unaudited Third Quarter 2026 results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and the Third Quarter 2026 MD&A can be accessed at www.cuc-cayman.com (Investor Relations/Press Releases) and at www.sedarplus.ca. 

The principal activity of the Company is to generate, transmit and distribute electricity in its licence area of Grand Cayman, Cayman Islands, pursuant to a 20-year Transmission & Distribution ("T&D") Licence and a 25-year non-exclusive Generation Licence (the "Generation License" and together with the T&D Licence, the "Licences") granted by the Cayman Islands Government (the "Government", "CIG"). The T&D Licence, which expires in April 2028, contains provisions for an automatic 20-year renewal and the Company has reasonable expectation of renewal until April 2048. The Generation Licence expires in November 2039. Further information is available at www.cuc-cayman.com.

Certain statements in the MD&A, other than statements of historical fact, are forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to the Company and its operations, including its strategy and financial performance and condition. Forward looking statements include statements that are predictive in nature, depend upon future events or conditions, or include words such as "expects", "anticipates", "plan", "believes", "estimates", "intends", "targets", "projects", "forecasts", "schedule", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". Forward looking statements are based on underlying assumptions and management's beliefs, estimates and opinions, and are subject to inherent risks and uncertainties surrounding future expectations generally that may cause actual results to vary from plans, targets and estimates. Some of the important risks and uncertainties that could affect forward looking statements are described in the MD&A in the section labeled "Business Risks" and include but are not limited to operational, general economic, market and business conditions, regulatory developments and weather. CUC cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize or should underlying assumptions prove incorrect. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law. 

SOURCE Caribbean Utilities Company, Ltd.

Letitia Lawrence, Vice President Finance and Chief Financial Officer, Phone: [phone], E-Mail: [email protected]