Caribbean Utilities Company, Ltd. is listed for trading in United States
dollars on the Toronto Stock Exchange.
GRAND CAYMAN, Cayman Islands, Feb. 6, 2014 /CNW/ - Caribbean Utilities
Company, Ltd. (TSX:CUP.U) ("CUC" or "the Company") announced today its
unaudited results for the Fourth Quarter ended December 31, 2013 (all
figures in United States dollars).
Net earnings for the three months ended December 31, 2013 ("Fourth
Quarter 2013") were $5.8 million, a $1.7 million increase when compared
to $4.1 million for the three months ended December 31, 2012 ("Fourth
Quarter 2012"). A 6% increase in kilowatt ("kWh") sales, lower
operating expenditure and higher other income contributed to the Fourth
Quarter increase in net earnings. These items were partially offset by
higher finance charges for the Fourth Quarter 2013 when compared to the
Fourth Quarter 2012.
After the adjustment for dividends on the preference shares of the
Company, earnings on Class A Ordinary Shares for the Fourth Quarter
2013 were $5.2 million, or $0.18 per Class A Ordinary Share, as
compared to $3.5 million, or $0.12 per Class A Ordinary Share for the
Fourth Quarter 2012.
Net earnings for the twelve months ended December 31, 2013 were $20.4
million. This represents a $2.7 million increase from net earnings of
$17.7 million for the twelve months ended December 31, 2012. This
increase is attributable to a 1% increase in kWh sales, base rate
increases effective June 1, 2012 and June 1, 2013 respectively, lower
general and administration and maintenance costs and increased other
income. These items were partially offset by higher depreciation costs
for the twelve months ended December 31, 2013 when compared to the
twelve months ended December 31, 2012.
After the adjustment for dividends on the preference shares of the
Company, earnings on Class A Ordinary Shares for the twelve months
ended December 31, 2013 were $19.5 million, or $0.68 per Class A
Ordinary Share, as compared to $16.8 million, or $0.58 per Class A
Ordinary Share for the twelve months ended December 31, 2012.
For the Fourth Quarter 2013, kWh sales were 140.3 million compared to
132.4 million for the Fourth Quarter 2012. Sales were driven by warmer
weather conditions which impacted customer air conditioning usage. The
average monthly temperature for the Fourth Quarter 2013 was 2.7 degrees
Fahrenheit higher than the average monthly temperature experienced
during the Fourth Quarter 2012.
Electricity sales revenue increased $1.3 million in the Fourth Quarter
2013 to $18.1 million when compared to electricity sales revenues of
$16.8 million for the Fourth Quarter 2012. This increase is due to a 6%
increase in kWh sales and the 1.8% base rate increase which took effect
June 1st, 2013.
For the twelve months ended December 31, 2013 kWh sales were 555.7
million kWh, an increase of 7.9 million kWh when compared to 547.8
million for the year ended December 31, 2012. Sales were positively
impacted by a 1% growth in customer numbers and warmer weather
conditions that affected customer air conditioning use. The average
monthly temperature for 2013 was 82.2 degrees Fahrenheit compared to
81.9 degrees for 2012.
Electricity sales revenue increased $2.0 million in the year ended
December 31, 2013 to $71.1 million when compared to electricity sales
revenues of $69.1 million for the year ended December 31, 2012. The
increase in electricity sales revenues for the year ended December 31,
2013 was due to a 1% increase in total customers, a 1% increase in kWh
sales and the 0.7% and 1.8% base rate increases effective June 1st 2012 and June 1st 2013 respectively.
Total customers as at December 31, 2013 were 27,364, an increase of 1%
compared to 27,035 customers as at December 31, 2012. The Company
connected 188 customers for the three- month period ended December 31,
2013. These connections comprised of 159 residential customers and 29
In December 2013, the Electricity Regulatory Authority ("ERA") approved
the Company's 2014-2018 Capital Investment Plan (CIP) in the amount of
$143 million for non-generation expansion costs. During this period of
continued low growth, CIP initiatives focus on improving reliability of
service and operational efficiencies. Generation expansion projects
are subject to competitive bid.
In October 2013 the Company issued a Certificate of Need ("CON") for new
generating capacity. This action was driven primarily by the upcoming
retirements of some of the Company's generating units which will begin
in 2014. The CON listed a requirement of 36 megawatts (MW) of
generating capacity, with 18 MW to be operational no later than April
2016 and the remaining 18 MW to be operational no later than May 2016.
In November 2013, the ERA issued a solicitation for Statements of
Qualifications from prospective bidders. The deadline for submissions was December 20, 2013 and the ERA has since
announced the listing of qualified bidders and issued a request for
During the period under review the Company resumed the roll out of new
meters as part of the Advanced Metering Infrastructure project.
Following the installation of the first 7,000 meters, further
installation was delayed to allow for manufacturer software and
hardware upgrades. This project will bring efficiencies in the meter
reading and services such as performing disconnects and reconnects
directly from CUC's offices, providing real-time electricity
consumption information and a 'pay as you go' payment option to assist
consumers with the monitoring and controlling of their electricity
consumption. The project should be substantially completed by the end
Richard Hew, President and Chief Executive Officer of the Company,
stated, "The Fourth Quarter 2013 yielded overall positive results in
sales, earnings and other developments with the announcement of the
companies which were selected to develop large scale renewables, and
the start of the competitive solicitation process for firm generation.
Large scale renewables, combined with the replacement of older diesel
generators by more efficient and firm generation, will bring price,
reliability and environmental benefits to consumers."
During the Fourth Quarter 2013, two Renewable Energy developers were
chosen to provide large scale renewable energy to the CUC grid. This
process is subject to approval by the ERA of the negotiated final Power
Purchase Agreements. New Generation Power ("NGP") has proposed to
provide 3 MW of wind generation and 5 MW of solar generation and
International Electric Power LLC (IEP) has proposed to provide an
additional 5 MW of solar power. It is estimated that the projects will
be completed in 2015, barring regulatory or other delays.
CUC's Fourth Quarter Report for the period ended December 31, 2013 is
attached to this release. 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.
CUC - 4th Quarter 2013 Report
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.
PDF available at: http://stream1.newswire.ca/media/2014/02/06/20140206_C8339_DOC_EN_36411.pdf
SOURCE: Caribbean Utilities Company, Ltd.
For further information:
Contact: Letitia Lawrence
Vice President Finance and Chief Financial Officer
Phone: (345) 914-1124