Caribbean Utilities Company, Ltd. announces unaudited results for the three and nine months ended September 30th, 2020
Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange under the trading symbol "CUP.U"
GRAND CAYMAN, Cayman Islands, Oct. 30, 2020 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its unaudited results for the three and nine months ended September 30, 2020 (all dollar amounts are stated in United States dollars).
Results for the Company for the three months ending September 30, 2020 ("Third Quarter 2020" or "Q3 2020") reflect the impact that the COVID-19 pandemic has had on our business and Grand Cayman's economy.
Net earnings for Q3 2020 totalled $10.4 million, comparable to $10.4 million for the three months ending September 30, 2019 ("Third Quarter 2019" or "Q3 2019").
Net earnings for the nine months ended September 30, 2020 totalled $18.7 million, a decrease of $4.2 million when compared to net earnings of $22.9 million for the nine months ended September 30, 2019. The decrease is primarily attributable to higher depreciation and finance charges.
Sales for Q3 2020 totalled 175.1 million kilowatt hours ("kWh"), a decrease of 9.3 million kWh, or 5%, in comparison to 184.4 million kWh for Q3 2019. Sales for the nine months ended September 30, 2020 totalled 492.9 million kWh, a decrease of 11.0 million kWh, or 2%, in comparison to 503.9 million kWh for the nine months ended September 30, 2019.
Sales for the three and nine months ended September 30, 2020 were negatively impacted by a decrease in the kWh consumption of Large Commercial customers driven by the impact of the COVID-19 pandemic on the Cayman Islands' economy, partially offset by an increase in Residential customer's kWh consumption in 2020 compared to 2019.
During the nine months ended September 30, 2020, the Company experienced a 24% decline in average fuel costs when compared to the same period in 2019. The savings have resulted in the average rate per kWh decreasing for the nine months ended September 30, 2020 to $0.2754 per kWh in comparison to $0.3024 for the nine months ended September 30, 2019. As a result, customers have paid less per kWh for electricity consumed during the nine months ended September 30, 2020 in comparison to the nine months ended September 30, 2019.
President and CEO, Mr. Richard Hew, says, "Although the duration and final impact of the COVID-19 pandemic on the Cayman Islands' economy and CUC remain uncertain, Q3 2020 represented a relatively stable quarter for the Company in the circumstances. During the quarter, the Company continued to deliver on its objectives of health and safety of its employees and the public, reliable electricity service, financial stability and being a good corporate citizen. Health and safety and reliability performance indicators were as planned and the Company was pleased to reach agreement with its regulator to defer the impact of the rate adjustments on customer bills until 2021. During the quarter the company also submitted a utility scale solar project to the regulator which is permitted under its license and is in keeping with Company and the Cayman Islands renewable energy goals."
CUC's Third Quarter results and related Management's Discussion and Analysis ("MD&A") for the period ended September 30, 2020 are attached to this release.
The MD&A section of this report contains a discussion of CUC's unaudited 2020 Third Quarter results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and Third Quarter MD&A can be accessed at www.cuc-cayman.com (Investor Relations/Press Releases) and at www.sedar.com.
CUC provides electricity to Grand Cayman, Cayman Islands, under an Electricity Generation Licence expiring in 2039 and an exclusive Electricity Transmission and Distribution Licence expiring in 2028. 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", "plans", "believes", "estimates", "intends", "targets", "projects", "forecasts", "schedules", 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 materialise, 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: (345) 914-1124, E-Mail: [email protected]
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