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, Aug. 4 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC" or the "Company") announced today its unaudited results for the second quarter ended June 30, 2010 (all figures in United States dollars).
Electricity sales for the three months ended June 30, 2010 ("Second Quarter 2010") totaled 149.8 million kilowatt hours ("kWh") in comparison to 142.2 million kWh for the three months ended June 30, 2009 ("Second Quarter 2009"); an increase of 5%. For the six months ended June 30, 2010 ("First Half of 2010"), electricity sales increased by 4% to 273.2 kWh, compared to 262.3 kWh for the six months ended June 30, 2009 ("First Half of 2009"). Quarter over quarter electricity sales were significantly impacted by hotter than average temperatures in the Second Quarter 2010 compared to the cooler than average temperatures experienced in the Second Quarter 2009 with resultant lower than expected sales in the Second Quarter 2009. A new system peak load of 102.1 Megawatts ("MW") was recorded in June 2010, up 8.2% from the peak load of 94.4 MW recorded in June 2009.
Net earnings for the Second Quarter 2010 were $6.2 million, an increase of $1.2 million over net earnings of $5 million for the Second Quarter 2009. Net earnings for the First Half of 2010 were $8.6 million, an increase of $1.1 million compared to net earnings of $7.5 million for the First Half of 2009. Sales growth due to higher temperatures and modest growth in customer connections, partially offset by increased depreciation expense have contributed to this increase. The Company continued through the period with its deliberate efforts to improve productivity and achieved a 5% gain in total customers per employee at 132 at the end of the quarter and a 5% gain in sales per employee at 1.39 kWh for the First Half of 2010. In addition, cost control efforts, including recruitment and salary freezes, have also contributed positively to the Company's ability to manage during this challenging economic period.
President and CEO of CUC Mr. Richard Hew said, "Although we have seen a relatively good first half of 2010 in respect of revenues and earnings, our analysis confirms that it is largely due to increased air conditioning loads in response to higher temperatures. June in particular was a very hot month with average temperatures of 86 degrees Fahrenheit recorded, compared to 82 degrees Fahrenheit in June 2009." He added, "Real underlying sales growth on the island has slowed considerably and we remain conservative with respect to the outlay of capital or other discretionary expenditures in advance of a sustained recovery of the Cayman Islands economy. However, we will continue our efforts to deliver reliable service to our customers." During the quarter, the Company reached a new reliability peak Average System Availability Index rating of 99.99% as compared to 99.91% in the Second Quarter 2009.
After the adjustment for dividends on the Class B Preference Shares of the Company, earnings on Class A Ordinary Shares for the Second Quarter 2010 were $6.1 million, or $0.21 per Class A Ordinary Share, as compared to $4.9 million, or $0.18 per Class A Ordinary Share for the Second Quarter 2009. Earnings on Class A Ordinary Shares for the First Half of 2010 were $8.4 million, or $0.29 per Class A Ordinary Share, as compared to $7.3 million, or $0.26 per Class A Ordinary Share for the First Half of 2009.
The Company connected 749 new customers between June 30, 2009 and June 30, 2010. Of these, 678 customers were added to the residential category and 71 customers were added to the commercial category. Total customers as at June 30, 2010 were 25,817, an increase of 3% over the 25,068 customers as at June 30, 2009.
CUC's Second Quarter Report for the period ended June 30, 2010, attached to this release, is incorporated by reference and can be accessed by clicking the link below:
The Management's Discussion and Analysis section of this report contains a detailed discussion of CUC's unaudited second quarter financial results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and Second Quarter Report 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.
CUC includes forward-looking statements in this material. 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 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: For further information: Letitia Lawrence, Vice President Finance and Chief Financial Officer, Phone: (345) 914-1124, E-Mail: email@example.com