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, May 6, 2020 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its unaudited results for the three months ended March 31, 2020 ("First Quarter" or "Q1 2020") (all figures in United States dollars).
Net earnings decreased $0.6 million from $4.5 million in Q1 2019 to $3.9 million in Q1 2020. The decrease in net earnings is due primarily to higher depreciation, transmission and distribution and finance charges. These items were partially offset by higher electricity sales and lower general and administration costs.
After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for Q1 2020 were $3.8 million or $0.11 per Class A Ordinary Share, compared to earnings on Class A Ordinary Shares of $4.4 million, or $0.13 per Class A Ordinary Share for Q1 2019.
Electricity sales revenues were $21.2 million for Q1 2020, an increase of $0.9 million when compared to electricity sales revenues of $20.3 million for Q1 2019. Electricity sales revenues for Q1 2020 increased when compared to the same period last year due primarily to a 4% increase in kWh sales.
First Quarter 2020 saw an increase in our customer base. Total customers as at March 31, 2020 were 30,734, an increase of 789 customers, or 3%, compared to 29,945 customers as at March 31, 2019.
President and CEO, Mr. Richard Hew, stated, "Given that the closure of businesses and the international airports by the Cayman Islands Government in response to COVID-19 did not occur until the middle of March, the impact of the pandemic on the local economy is not fully reflected in the Company's First Quarter results. In the coming months we will be better able to assess the impact the pandemic has on the economy of the Cayman Islands and CUC's operational and financial performance. I would like to record my appreciation and thanks for the manner in which our employees quickly transitioned to working from home, or adjusted their work methods to continue serving on the frontline, while preserving their health and safety and that of their co-workers and the public. Health and safety remains our top priority while we strive to provide excellence in customer service and manage our costs to maintain our long-term financial strength and stability."
CUC's First Quarter results and related Management's Discussion and Analysis ("MD&A") for the period ended March 31, 2020 are attached to this release and incorporated by reference and can be accessed by clicking the link at the bottom of the release.
The MD&A section of this report contains a discussion of CUC's unaudited 2020 First Quarter results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and First Quarter 2020 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.
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]