Caribbean Utilities Company, Ltd., announces its results for the twelve-month period ended December 31, 2017
Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange
GRAND CAYMAN, Cayman Islands, March 1, 2018 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its audited results for the twelve-month period ended December 31, 2017 (all figures in United States dollars).
Operating Income for the year ended December 31, 2017 ("Fiscal 2017") totalled $27.4 million, a $0.5 million increase from Operating Income of $26.9 million for the year ended December 31, 2016 ("Fiscal 2016"). This increase is attributable to a 2% increase in kilowatt ("kWh") sales, and 0.1% and 1.6% base rate increases effective June 1, 2016 and June 1, 2017 respectively. These items were partially offset by higher consumer services and depreciation expenses in 2017.
Net earnings for Fiscal 2017 were $23.8 million, a $1.4 million decrease from net earnings of $25.2 million for Fiscal 2016. This decrease is attributable to higher finance charges more than offsetting the gain in Operating Income.
After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for Fiscal 2017 were $22.8 million, or $0.70 per Class A Ordinary Share as compared to $24.3 million, or $0.75 per Class A Ordinary Share for Fiscal 2016.
Kilowatt-hour sales for Fiscal 2017 were 621.8 million kWh, an increase of 15.1 million kWh or 2% when compared to 606.7 million for Fiscal 2016. Sales were positively impacted by an increase in the average residential consumption and overall growth in customer numbers.
Electricity sales revenue increased $1.6 million for Fiscal 2017 to $81.8 million when compared to electricity sales revenues of $80.2 million for Fiscal 2016. This increase is attributable to a 2% increase in kWh sales and 1.6% and 0.1% base rate increases effective June 1, 2017 and June 1, 2016 respectively.
President and CEO, Mr. Richard Hew, says, "2017 was another positive year for the Company. Although sales were lower than forecasted mainly in the fourth quarter due to wet and cool weather, the Company was still able to absorb the first full year of depreciation and finance charges related to the 2016 Generation Expansion Project and post reasonably strong financial results. During the year the Company also achieved the Investors in People Gold standard, completed a Company record of 979 days without a lost time injury and was able to complete the public consultations for the Integrated Resource Plan ("IRP") study which will give direction for the energy generation plans for Grand Cayman in the future. The study is now with the regulator awaiting approval. Through the efforts of all of our employees, the Company continued to adequately control its expenses while at the same time providing a safe, reliable and efficient service to our customers across Grand Cayman."
CUC's 2017 Results and related Management's Discussion and Analysis ("MD&A") for the twelve-month period ended December 31, 2017 are attached to this release and incorporated by reference. They 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 audited 2017 results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and 2017 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 2039 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.
http://files.newswire.ca/520/CUCreport2017.pdf
SOURCE Caribbean Utilities Company, Ltd.
Letitia Lawrence - Vice President Finance and Chief Financial Officer, Phone: (345) 914-1124, E-Mail: [email protected]
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