Caribbean Utilities Company, Ltd. Announces Second Quarter Results for the Period Ended June 30, 2019
Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange.
GRAND CAYMAN, Cayman Islands, Aug. 2, 2019 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its unaudited results for the Second Quarter ended June 30 2019 (all figures in United States dollars).
CUC's operating income for the three months ended June 30, 2019 ("Second Quarter 2019" or "Q2 2019") totalled $8.2 million, an increase of $0.5 million when compared to operating income of $7.7 million for the three months ended June 30, 2018 ("Second Quarter 2018" or "Q2 2018"). The increase is primarily attributable to higher electricity sales revenues which was partially offset by higher depreciation expenses.
Net earnings for Q2 2019 totalled $7.9 million, an increase of $0.9 million from $7.0 million for Q2 2018. In addition to the items impacting Operating Income, Net Earnings were also positively impacted by lower finance charges driven by higher Allowance for Funds Used During Construction ("AFUDC").
After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for Q2 2019 were $7.8 million, or $0.24 per Class A Ordinary Share, compared to earnings on Class A Ordinary Shares of $6.9 million, or $0.21 per Class A Ordinary Share for Q2 2018.
Sales for Q2 2019 totalled 173.0 million kWh, an increase of 13.3 million kWh in comparison to 159.7 million kilowatt hours ("kWh") for Q2 2018. This increase was driven by an increase in the average residential and the average commercial kWh consumption in Q2 2019 compared to Q2 2018. The average monthly temperature for Q2 2019 was 84 degrees Fahrenheit as compared to an average monthly temperature of 83 degrees for Q2 2018. Warmer temperatures increased air conditioning load which positively impacted the Company's sales.
During Second Quarter 2019, the Company's customer count exceeded thirty thousand. Total customers as at June 30, 2019 were 30,100, an increase of 723 customers, or 2%, compared to 29,377 customers as at June 30, 2018.
On June 17, 2019, the Company experienced a new system peak demand of 113.3 megawatts ("MW"). Prior years' peak demand was 105.6 MW (2017) and 103.6 MW (2018). The Company's installed generating capacity is 161 MW and other renewable capacity connected to the grid increased to 9.4 MW in June 2019 from 7.9 MW in June 2018.
President and CEO, Mr. Richard Hew, says, "Electricity sales have been robust over the first half of the year, driven by growth in customer numbers, a strong economy and above normal temperatures, particularly in May and June. The Company continues to invest in the infrastructure necessary to meet the growing customer demand and to serve reliably. Refurbishments to the Rum Point and Bodden Town substations have been completed and the new Seven Mile Beach substation construction is progressing well towards completion later this year. Construction of the new Prospect substation has also commenced. The Company continues to focus its attention on improving the level of service it offers to its customer by investing in infrastructure, technology and its people."
CUC's Second Quarter results and related Management's Discussion and Analysis ("MD&A") for the period ended June 30, 2019 are incorporated by reference and can be accessed by clicking the link included with this release.
The MD&A section of this report contains a discussion of CUC's unaudited 2019 Second Quarter results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and Second 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 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.
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]
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