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, Aug. 6 /CNW/ - Caribbean Utilities Company,
Ltd. ("CUC" or the "Company") announced today its unaudited results for the
second quarter ended June 30, 2009 (all figures in United States dollars).
In August of 2008, the Company announced it would change its year end to
December 31. Therefore, as a result of this change, the analysis for the six
months ended June 30, 2009 includes comparisons to the six month period ended
July 31st 2008. The six month period ended July 31, 2008 is the sum of the
previously reported three month period ended April 30, 2008 and the three
month period ended July 31, 2008. This is the period closest to that of the
six months ended June 30, 2009.
Electricity sales for the second quarter of 2009 totaled 142.2 million
kilowatt hours ("kWh") in comparison to 149.1 million kWh for the three months
ended July 31, 2008; a decrease of 5%. For the first half of 2009, electricity
sales declined by 6% to 262.3 kWh, compared to 277.8 kWh for the six months
ended July 31, 2008. Electricity sales were adversely affected by lower than
average temperatures throughout the first half of 2009. Also affecting the
sales variance is the comparison of two differing periods as described above.
Net earnings for the second quarter of 2009 were $5.0 million. This
represents a 6% or $0.3 million decrease from net earnings of $5.3 million for
the three months ended July 31, 2008. Net earnings for the first half of 2009
were down $2.2 million or 23% at $7.5 million compared to net earnings of $9.7
million for the six months ended July 31, 2008. Varying temperatures, negative
sales growth for the period as compared to the three months ended July 31,
2008 and increased depreciation expense have contributed to this decline.
Comparison of earnings in the first half of 2009 to the six months ended July
31, 2008 includes, due to timing, the favourable fuel cost recovery of $2.5
million for the three months ended April 30, 2008. The introduction of a fuel
tracker mechanism in the Company's 2008 Transmission and Distribution Licence
has eliminated favourable or adverse timing differences in fuel cost recovery
in the financial reporting quarters since April 2008.
President and CEO of CUC Mr. Richard Hew said, "At the end of the second
quarter of 2009, CUC remains a strong and stable company despite the economic
downturn and consequent budget and other resource constraints."
After the adjustment for dividends on the Class B Preference Shares of
the Company, earnings on Class A Ordinary Shares for the second quarter of
2009 were $4.9 million, or $0.18 per Class A Ordinary Share, as compared to
$4.7 million, or $0.19 per Class A Ordinary Share for the three months ended
July 31, 2008. Earnings on Class A Ordinary Shares for the first half of 2009
were $7.3 million, or $0.26 per Class A Ordinary Share, as compared to $9.0
million, or $0.36 per Class A Ordinary Share for the six months ended July 31,
During the second quarter of 2009, the Company closed the first tranche
of a private placement of 7.50% Senior Unsecured Notes in the amount of $30
million. The second tranche of $10 million closed in early July. Mr. Hew
stated that, "The availability of this capital to repay short-term
indebtedness and to finance ongoing additions and upgrades to our systems,
demonstrates the continued financial strength of the Company."
The Company connected 222 customers during the second quarter of 2009. Of
these, 171 customers were added to the residential category and 51 customers
were added to the commercial category. Total customers as at June 30, 2009
were 25,068, an increase of 4% over the 24,167 customers as at July 31, 2008.
Customer growth contributed to a new system peak load of 94.4 Megawatts
("MW") in June 2009, up 2% from the peak load of 92.9 MW recorded in June
2008. A further new system peak load was recorded after the end of the period
at 95.9 MW on July 21, 2009. Currently CUC has an installed generation
capacity of 136 MW with an additional 16 MW to be in service in September this
"We will continue to monitor the global and local economies and to build
flexibility into our financial plans to enable us to respond to any changes in
the business environment. In view of the current economic downturn, CUC
continues to take the necessary steps to ensure that our business remains
efficient and effective", Mr. Hew said.
CUC's Second Quarter Report for the period ended June 30, 2009 is
attached to this release, is incorporated by reference and can be accessed by
clicking the link below:
The Management's Discussion and Analysis section of this report contains
a detailed discussion of CUC's unaudited second quarter financial results, the
Cayman Islands economy, liquidity and capital resources, capital expenditures
and the business risks facing the Company. The release and Second 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.
For further information:
For further information: Letitia Lawrence, Vice President Finance and
Chief Financial Officer, Phone: (345) 914-1124, E-Mail: email@example.com