Caribbean Utilities Company, Ltd. is listed for trading in United States
dollars on the Toronto Stock Exchange
GRAND CAYMAN, Cayman Islands, Nov. 1, 2013 /CNW/ - Caribbean Utilities
Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its
unaudited results for the Third Quarter ended September 30th 2013 (all figures in United States dollars).
Net earnings for the three months ended September 30, 2013 ("Third
Quarter 2013") totalled $6.0 million, a decrease of $0.6 million when
compared to $6.6 million for the three months ended September 30, 2012
("Third Quarter 2012"). This decrease was due primarily to higher
depreciation and finance charges and flat electricity sales revenues.
These items were partially offset by lower general and administration
and maintenance costs. Maintenance costs declined due to the nature
of certain scheduled capital projects for 2013 which are deemed to
result in upgrades that extend the life or increase the output of
After the adjustment for dividends on the preference shares of the
Company, earnings on Class A Ordinary Shares for the Third Quarter 2013
were $5.9 million, or $0.21 per Class A Ordinary Share, a decrease of
$0.6 million from the $6.5 million, or $0.22 per Class A Ordinary Share
for the Third Quarter 2012.
Sales for the Third Quarter 2013 totalled 145.7 million kiloWatt
("kWh"), a decrease of 3.4 million kWh in comparison to 149.1 million
kWh for the Third Quarter 2012. Third Quarter 2013 kWh sales were
negatively impacted by a reduction in customer air conditioning load
due to wetter weather conditions, when compared to the same period last
year. The average monthly rainfall for the Third Quarter 2013 was 7.6
inches as compared to average monthly rainfall of 6.5 inches for Third
Total customers as at September 30, 2013 were 27,176, an increase of 282
customers, or 1%, compared to 26,894 customers as at September 30,
2012. Customer numbers continue to grow but at a slower rate when
compared to recent quarters.
President and CEO, Mr. Richard Hew, says, "Flat sales combined with
higher finance and depreciation charges stemming from our long-term
commitment to investment in infrastructure which is required to provide
a safe and reliable service, produced a decline in earnings when
compared to the same quarter last year. Despite this short term
decline, earnings for the the nine months ended September 30, 2013
remain ahead of earnings for the same period in 2012. The Company
maintains a positive outlook for an improved economy in the future.
Net earnings for the nine months ended September 30, 2013 were $14.7
million, an increase of $1.1 million when compared to net earnings of
$13.6 million for the nine months ended September 30, 2012.
In July 2013, the Electricity Regulatory Authority ("ERA") announced its
decision to cancel the solicitation process for firm generating
capacity that was being sought for installation in 2014. In October
2013, the Company and the ERA agreed to a temporary generation plan in
order to meet the reserve margin requirements for the summer of 2014
and until those firm capacity needs can be met.
The Company believes that there are economic and environmental benefits
to be derived from the use of renewable energy sources in place of some
of the diesel fuel presently used in our generators. During the period
under review, the Company continued its discussions with New Generation
Power ("NGP") and International Electric Power ("IEP"), two U.S. based
renewable energy developers selected through a solicitation process to
provide renewable energy to CUC's grid under power purchase agreements.
During the period under review, the Company won two of the top awards at
the Caribbean Electric Utility Services Corporation ("CARILEC") 2012
Benchmarking Awards. The award for Best Performance in Transmission and
Distribution Services was given based on CUC's regional leading
performance in efficiency, productivity, reliability and cost
effectiveness. The second award was for Best in Performance in
Commercialization Services and was based on customer service quality,
cost effectiveness and productivity. Participants were evaluated for
these awards based on their performances in the 2012 Traditional
CUC's Third Quarter results and related Management's Discussion and
Analysis ("MD&A") for the period ended September 2013 are attached to
this release and incorporated by reference and can be accessed by
clicking the link at the end of this release.
The MD&A section of this report contains a discussion of CUC's unaudited
2013 Third Quarter results, the Cayman Islands economy, liquidity and
capital resources, capital expenditures and the business risks facing
the Company. The release and Third Quarter 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.
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/2013/11/01/20131101_C9502_DOC_EN_32827.pdf
SOURCE: Caribbean Utilities Company, Ltd.
For further information:
Contact: Letitia Lawrence
Vice President Finance and Chief Financial Officer
Phone: (345) 914-1124