CARIBBEAN UTILITIES COMPANY, LTD. DELIVERS FAVOURABLE Q3 2025 PERFORMANCE, AND PROGRESS ON CUSTOMER AFFORDABILITY GOALS
GRAND CAYMAN, Cayman Islands, Nov. 6, 2025 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC" or the "Company") announced its consolidated unaudited results for the three and nine months ended September 30, 2025, highlighting sustained growth in net earnings fuelled by increased energy sales, base rate adjustments, and enhanced operational efficiency.
Highlights & Strategic Milestones include:
(figures in United States Dollars)
Financial Growth
- Net earnings for Quarter Three 2025 ("Q3 2025") reached $16.1 million, up $1.7 million from in Q3 2024. This increase reflects the success of targeted efficiency projects that are enhancing customer affordability while sustaining strong growth.
- Sales increased by 2.8 million kilowatt-hours (kWh) compared to Q3 2024, reflecting resilient demand despite slightly cooler weather conditions that moderated overall growth. This increase in electricity consumption indicates economic growth in Grand Cayman with a 2% increase in customers in Q3 2025 compared to Q3 2024 and increased consumption by Large Commercial Customers.
- Capital expenditures totalled $20.4 million during the quarter, an $8.7 million decrease compared to Q3 2024 due to the completion of the battery storage project in 2024.
Customer Commitment
- During Q3 2025, CUC successfully completed two segments of the Resiliency Project, costing $7.8 million, that will bolster energy security in Grand Cayman.
- Fuel factor costs fell by 17% in Q3 2025. This reduction was attributed to an overall fuel cost decline on Grand Cayman and infrastructure upgrades that lead to fuel cost savings.
- CUC's service continued to be more reliable than the average North American utility through September 2025, as a result of infrastructure improvements. When compared to the same period in 2024, outages decreased by nearly 8%, and customer interruption hours dropped over 33%, showing strong progress.
- By the end of the third quarter of 2025, CUC successfully completed lifecycle upgrades on five major generating units, totalling a combined capacity of 68 megawatts. This milestone underscores a major advancement in the Company's generation modernization initiative, paving the way for improved fuel efficiency and enhanced operational reliability that will benefit customers.
- In October 2025, the Cayman Islands Economics and Statistics Office released the Second Quarter 2025 Consumer Price Index Report, highlighting Housing and Utilities as the only division to record a decline. The 1.6% decrease in CPI, driven by a 9.7% drop in electricity prices among others, reflects early progress toward greater customer affordability. This trend is supported by CUC's ongoing investments in efficiency initiatives, which are beginning to alleviate the impact of global fuel price swings on consumers while helping to lower electricity costs--reinforcing CUC's commitment to affordable energy.
Toronto Stock Exchange Anniversary ("TSX") Listing
On September 10, 2025, CUC marked 35 years since its listing on the Toronto Stock Exchange (TSX"). The event brought together executives, board members, and key partners to honour a milestone that opened global capital markets to CUC, enabling transformative infrastructure investments and strengthening the Cayman Islands economy.
On September 5, 2025, CUC submitted a new Certificate of Need to the Utility Regulation and Competition Office ("URCO" or "the Regulator"), outlining strategic pathways to expand capacity on the Grand Cayman grid. This submission, mutually agreed upon with the Regulator in June, reflects CUC's ongoing commitment to supporting Grand Cayman's growth aligned with the Government's National Energy Policy. The official launch of the renewable competitive bidding process, led by the Regulator in August 2025, marked a major milestone towards delivering the Cayman Islands' largest utility-scale solar project, driving forward the development of critical renewable energy infrastructure.
Mr Richard Hew, CUC President and CEO, said:
"We are deeply committed to serving customers and delivering long-term value to shareholders. This third quarter has been especially meaningful, marked by the 35th anniversary of our TSX listing, the Company's participation in the Regulator's renewable tender, and the submission of the new Certificate of Need with the enhanced potential of renewable energy forming a significant portion of future generation. As always, CUC is focused on providing the lowest-cost energy to the people of Grand Cayman while advancing our strategic priorities."
Net Earnings and Sales Revenues
Electricity sales revenues increased by $1.6 million, or 4%, to $35.7 million in Q3 2025, compared with Q3 2024. The increase was driven by a 1% growth in kWh sales and base rate increases of 4% and 3.2%, effective June 1, 2025, and June 1, 2024, respectively.
Operating income for Q3 2025 totalled $15.5 million, an increase of $1.7 million, or 12%, compared with the same period in 2024. This was primarily driven by increase in sales revenues, Z-Factor revenues associated with approved infrastructure projects and lower power generation, T&D and maintenance costs. These gains were partially offset by higher depreciation expense related to the completion of major capital projects in prior periods.
Net earnings for the third quarter were $16.1 million, compared to $14.4 million in Q3 2024--an increase of $1.7 million, primarily attributable to higher operating income. After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for Q3 2025 were $16.0 million, or $0.38 per Class A Ordinary Share, compared to $14.3 million, or $0.38 for Q3 2024.
Note to Editors
Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange under the trading symbol "CUP.U".
CUC's Third Quarter 2025 results and related Management's Discussion and Analysis ("MD&A") are attached to this release and incorporated by reference. The MD&A section of this report contains a discussion of CUC's unaudited Third Quarter 2025 results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and the Third Quarter 2025 MD&A can be accessed at www.cuc-cayman.com (Investor Relations/Press Releases) and at www.sedarplus.ca.
The principal activity of the Company is to generate, transmit and distribute electricity in its licence area of Grand Cayman, Cayman Islands, pursuant to a 20-year Transmission & Distribution ("T&D") Licence and a 25-year non-exclusive Generation Licence (the "Generation License" and together with the T&D Licence, the "Licences") granted by the Cayman Islands Government (the "Government", "CIG"). The T&D Licence, which expires in April 2028, contains provisions for an automatic 20-year renewal and the Company has reasonable expectation of renewal until April 2048. The Generation Licence expires in November 2039. 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.
Letitia Lawrence, Vice President of Finance and Chief Financial Officer, Phone: (345) 914-1124, E-Mail: [email protected]
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