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. 15, 2019 /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, 2018 (all figures in United States dollars).
Operating Income for the year ended December 31, 2018 ("Fiscal 2018") totalled $28.4 million, a $1.0 million increase from Operating Income of $27.4 million for the year ended December 31, 2017 ("Fiscal 2017"). This increase is attributable to higher electricity sales revenues, primarily driven by a 1% increase in kilowatt per hour ("kWh") sales, and 1.6% and 1.8% base rate increases effective June 1, 2017 and June 1, 2018 respectively. These items were partially offset by higher depreciation and transmission and distribution expenses in 2018.
Net earnings for Fiscal 2018 were $26.8 million, a $3.0 million increase from net earnings of $23.8 million for Fiscal 2017. This increase is primarily attributable to higher operating income and lower finance charges.
After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for Fiscal 2018 were $25.8 million, or $0.78 per Class A Ordinary Share as compared to $22.8 million, or $0.70 per Class A Ordinary Share for Fiscal 2017.
Capital expenditures for the year were $58.0 million with progress made on the construction of two new distribution substations, a new Supervisory Control and Data Acquisition ("SCADA") system and an upgrade to the central control room at North Sound Plant.
President and CEO, Mr. Richard Hew, says, "We are pleased to report earnings growth for the year. Commercial and residential construction activity in Grand Cayman remained very active in 2018; however, sales growth was tempered by ongoing customer focus on energy efficiency and cooler weather as compared to 2017. The Company also experienced one of its most active years of construction as it continued to execute its Capital Investment Plan to put in place the modern infrastructure required to serve Grand Cayman as a leading destination today and into the future. With the growing importance on environmental sustainability, we progressed in this area with a significant increase in the amount of renewable energy feeding our grid and the acceptance of our Integrated Resource Plan by the Office of Utility Regulations and Competition as a roadmap for the transition to clean energy."
Renewable energy on the CUC grid grew by 47% for the year. At December 31, 2018, there were 343 customers connected with 4,917.14 kilowatts of renewable capacity for the Customer Owned Renewable Energy ("CORE") programme along with the BMR Energy (formerly Entropy) 5 megawatts ("MW") solar facility. The Company's aim is to have 25% of renewable energy on the grid by 2025 and to meet the objectives and targets of the National Energy Policy over the longer term. The Company has also submitted an additional $77 million in proposed grid enhancement projects, including battery storage, for regulatory review.
CUC's 2018 Results and related Management's Discussion and Analysis ("MD&A") for the twelve-month period ended December 31, 2018 are attached to this release and incorporated by reference. The release and 2018 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", "plans", "believes", "estimates", "intends", "targets", "projects", "forecasts", "schedules", 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.
SOURCE Caribbean Utilities Company, Ltd.
For further information: Letitia Lawrence - Vice President Finance and Chief Financial Officer, Phone: (345) 914-1124, E-Mail: [email protected]