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
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:
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: |
| (345) 914-1124 |