Caribbean Utilities Company, Ltd. Announces First Quarter Results for the Period Ended March 31, 2011

GRAND CAYMAN, CAYMAN ISLANDS, May 4 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC" or the "Company") announced today its unaudited results for the first quarter ended March 31, 2011 (all figures in United States dollars).

Despite continuing weak economic conditions on Grand Cayman during the three months ended March 31, 2011 ("First Quarter 2011"), the Company continued its steady performance with marginal growth in sales and total customers, and an increase in net earnings compared to the three months ended March 31, 2010 ("First Quarter 2010").

KiloWatt-hour ("kWh") sales for the First Quarter 2011 totaled 125.2 million, an increase of 1.8 million kWh, or 1.5%, in comparison to 123.4 million kWh for the First Quarter 2010. The total number of customers as at the end of the First Quarter 2011 was up by 2% at 26,261 compared to 25,676 at the end of the First Quarter 2010. The Company had a net increase of 110 customers for the First Quarter 2011.

Net earnings for the First Quarter 2011 increased by $0.6 million, to $3.1 million in comparison to $2.5 million for the First Quarter 2010. This increase is due to the 1.5% kWh sales growth for the period and lower transmission and distribution and maintenance expenses.  Maintenance expenses for the First Quarter 2011 were expected to be lower than in 2010 due to various capital projects scheduled for 2011.  These factors were partially offset by higher depreciation expense in the First Quarter 2011.

President and CEO Mr. Richard Hew says, "CUC continues to focus on containing discretionary expenditure while continuing to invest in existing and new assets critical to maintaining the safe and reliable service our customers value. The first quarter was a challenging one operationally with generation plant failures that unfortunately caused injuries to two of our employees and led to customer outages. However we have responded positively and are confident that our operations will be returned to normal by midyear."

During the First Quarter 2011, the Electricity Regulatory Authority approved the Company's proposed 2011-2015 Capital Investment in the amount of $134 million, excluding generation expansions which are subject to a competitive bid process.

CUC's first quarter results and related Management's Discussion and Analysis ("MD&A") for the period ended March 31, 2011 are attached to this release and incorporated by reference and can be accessed by clicking the link below:

http://files.newswire.ca/520/CUC_Q1.pdf

The MD&A section of this report contains a discussion of CUC's unaudited First Quarter 2011 results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and First Quarter 2011 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 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".

Caribbean Utilities Company, Ltd. ("CUC" or the "Company"), on occasion, includes forward-looking statements in its media releases, Canadian securities regulatory authorities filings, shareholder reports and other communications. 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 by their very nature and are subject to certain risks and uncertainties that may cause actual results to vary from plans, targets and estimates. Such risks and uncertainties include but are not limited to operational, regulation, general economic, market and business conditions 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. 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.

SOURCE Caribbean Utilities Company, Ltd.

For further information:

Contact:   Letitia Lawrence
Vice President Finance and Chief Financial Officer
Phone:  
E-Mail: 
(345) 914-1124
llawrence@cuc.ky


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