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, Feb. 4 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC" or the "Company") announced today its unaudited results for the fourth quarter and 12 months ended December 31, 2009 (all figures in United States dollars).
Net earnings for the three months ended December 31, 2009 were $5.9 million, representing an increase of 79% or $2.6 million from net earnings of $3.3 million for the three months ended December 31, 2008. This increase in earnings is primarily due to an 11% kWh sales growth quarter over quarter.
President and CEO of CUC Mr. Richard Hew said, "We are pleased with the Company's performance this quarter which was helped by the relatively warm and dry weather for the period as compared to last year. Fourth quarter 2008 was negatively impacted by cooler than average temperatures, higher than average rainfall and the passage of Hurricane Paloma." He added, "Although growth in sales on the island has slowed compared to recent years, the Company has managed to minimize the effect on earnings through reduced capital and other expenditures and will continue to seek opportunities to operate the business within the available financial resources."
Net earnings for the twelve months ended December 31, 2009 were $20.0 million, representing a 1% or $0.2 million increase from net earnings of $19.8 million for the twelve months ended December 31, 2008. This increase in earnings is primarily due to 2% kWh sales growth and lower general and administration, consumer service and promotion, transmission and distribution, maintenance and finance costs in 2009. These factors were partially offset by higher depreciation costs in 2009 and a favourable fuel cost recovery due to timing of recovery in 2008. The introduction of a fuel tracker mechanism in the Company's 2008 Transmission & Distribution Licence has eliminated favourable or adverse timing differences in fuel cost recovery.
Operating revenues decreased 18%, or $9.6 million, to $43.9 million for the three months ended December 31, 2009 from $53.5 million for the three months ended December 31, 2008. Operating revenues decreased 24%, or $49.2 million, to $158.8 million for the twelve months ended December 31, 2009 from $208.0 million for the twelve months ended December 31, 2008. Operating revenues are lower mainly due to lower fuel factor revenues in 2009 driven by lower fuel costs.
Mr. Hew added that, "Reliability, measured by the Average System Availability Index, was 99.96% and exceeded 2008 results. CUC will strive to maintain this performance through the completion of capital projects such as the Rum Point to Frank Sound transmission line and other operational improvements."
CUC's Fourth Quarter Report for the period ended December 31, 2009 is attached to this release and 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.
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 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: For further information: Letitia Lawrence, Vice President, Finance and Chief Financial Officer, Phone: (345) 914-1124, E-Mail: email@example.com