GRAND CAYMAN, Cayman Islands, Feb. 14 /CNW/ - Caribbean Utilities
Company, Ltd. ("CUC" or the "Company") announced today its unaudited
results for the fourth quarter and twelve months ended December 31,
2010 (all figures in United States dollars).
Net earnings for the three months ended December 31, 2010 were $4.7
million, representing a decrease of 20% or $1.2 million from net
earnings of $5.9 million for the three months ended December 31, 2009.
This decrease in earnings is principally attributable to 10% lower
sales during the period compared to the fourth quarter of 2009 due to
significantly cooler temperatures during the fourth quarter of 2010 and
particularly during the month of December.
Net earnings for the twelve months ended December 31, 2010 were $19.9
million, representing a 1% or $0.1 million decrease from net earnings
of $20.0 million for the twelve months ended December 31, 2009. The
decrease in earnings is due to 1% lower sales during the one year
period compared with 2009, increased depreciation expense and an
increase in finance charges. These increases were partially offset by
lower maintenance, general and administration and transmission and
distribution costs in 2010.
Operating income declined 13%, or $0.9 million, to $6.1 million for the
three months ended December 31, 2010 from $7.0 million for the three
months ended December 31, 2009. Despite lower kWh sales, operating
income increased 8%, or $1.9 million, to $25.9 million for the twelve
months ended December 31, 2010 from $24.0 million for the twelve months
ended December 31, 2009, reflecting overall improved efficiencies.
After adjustment for dividends on Class B Preference Shares, earnings on
Class A Ordinary Shares for the fourth quarter of 2010 were $4.0
million, or $0.15 per Class A Ordinary Share, compared to $5.5 million,
or $0.20 per Class A Ordinary Share for the fourth quarter of 2009.
After adjustment for dividends on Class B Preference Shares, earnings
on Class A Ordinary Shares for 2010 were $18.9 million, or $0.67 per
Class A Ordinary Share, as compared to $18.8 million or $0.67 per Class
A Ordinary Share in 2009.
Richard Hew, President and Chief Executive Officer of the Company
stated, "Apart from the unusually cool weather in December, which
caused significantly lower than expected sales, year-end results were
as expected. The Company continued its response to the recessionary
economic environment by trimming capital and operating expenditures to
maintain financial stability while meeting the obligation of safe and
reliable service to our customers."
Higher fuel prices drove operating revenues up 8%, or $3.5 million, to
$47.4 million for the fourth quarter 2010 from $43.9 million for the
fourth quarter 2009. Operating revenues increased 13%, or $21.3
million, to $180.1 million for the twelve months ended December 31,
2010 from $158.8 million for the twelve months ended December 31,
2009. The higher fuel factor revenues in 2010 as a result of the fuel
price increases were partially offset by a 10%, or $1.7 million,
decrease in electricity sales revenue in fourth quarter 2010 which was
driven by cooler weather. Average fuel costs, which are passed on to
customers without markup, rose from $2.77 per Imperial Gallon ("IG") in
2009 to $3.45 per IG in 2010 with the fourth quarter 2010 average
rising to $3.85 per IG.
The Company continued to invest in infrastructure and equipment during
2010 although at a lower level than in 2009 when capital expenditures
of over $19.0 million were made on generation expansion. Capital
expenditures for 2010 were focused on transmission and distribution
upgrades and generation plant replacements and upgrades. For the
fourth quarter of 2010, capital expenditures were $5.5 million, down
$1.0 million or 15% from $6.5 million for the fourth quarter of 2009.
For the one year period, capital expenditures were $21.5 million, down
$21.2 million or 50% from $42.7 million in 2009.
Mr. Hew added that, "Reliability, measured by the Average System
Availability Index, was 99.966% and exceeded 2009 results. Despite
economic challenges on the island, we see safe and reliable electricity
supply as critical in supporting the established financial services and
tourism industries as well as in attracting new development."
CUC's Fourth Quarter Report for the period ended December 31, 2010 can
be accessed by clicking the link below:
This report contains a detailed discussion of CUC's unaudited fourth
quarter financial results, the Cayman Islands economy, liquidity and
capital resources, capital expenditures and the business risks facing
the Company. The release and Fourth Quarter Report 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 2029 and an exclusive
Electricity Transmission and Distribution Licence expiring in 2028.
Further information is available at www.cuc-cayman.com.
Caribbean Utilities Company, Ltd. is listed for trading in United States
dollars on the Toronto Stock Exchange under the trading symbol "CUP.U".
CUC includes forward-looking statements in this material. 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 for the twelve month period ended December 31, 2009, in the section
labeled "Business Risks" and include but are not limited to 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.
For further information:
|Contact: ||Letitia Lawrence|
| ||Vice President Finance and Chief Financial Officer |
|Phone: ||(345) 914-1124|