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, Nov. 3, 2011 /CNW/ - Caribbean Utilities
Company, Ltd. ("CUC" or the "Company") announced today its unaudited
results for the three months ended September 30, 2011 ("Third Quarter
2011") (all figures are in United States dollars).
Electricity sales revenues decreased $0.1 million, or 1%, to $19.0
million for the Third Quarter 2011, from $19.1 million for the three
months ended September 30, 2010, ("Third Quarter 2010") as a result of a 1% kilowatt-hour ("kWh")
sales decline experienced quarter over quarter. Sales for the Third
Quarter 2011 totalled 151.2 million kWh, a decrease of 1.5 million kWh,
or 1%, in comparison to 152.7 million kWh for the Third Quarter 2010.
Analysis of electricity sales data indicate a reduction in electricity
consumption which may be caused by energy conservation in response to
high fuel costs. Fuel rates in the Third Quarter 2011 were the highest
for 2011 averaging $4.74 per Imperial Gallon (IG) compared to $3.47 per
IG for the same period last year. Reductions experienced in the
island's population also negatively impacted sales for the Third
Quarter 2011 as compared to the Third Quarter 2010.
Net earnings for the Third Quarter 2011 totalled $6.3 million, a
decrease of $0.3 million, or 5%, when compared to $6.6 million for the
Third Quarter 2010. A 1% decline in kWh sales and higher general and
administration, transmission and distribution and finance costs were
partially offset by a decrease in consumer service and maintenance
costs for the Third Quarter 2011 when compared to the Third Quarter
After the adjustment for dividends on the preference shares of the
Company, earnings on Class A Ordinary Shares for the Third Quarter 2011
were $6.1 million, or $0.22 per Class A Ordinary Share, a decrease of
$0.4 million when compared to $6.5 million, or $0.23 per Class A
Ordinary Share for the Third Quarter 2010.
CUC's President and Chief Executive Officer Mr. Richard Hew said, "The
weak economy and high fuel prices continue to negatively impact sales
and earnings. The Company continues to respond by containing
discretionary capital and operational expenditures, while operating in
an efficient manner and providing a safe and reliable service to our
Following the shortfall in generation capacity experienced earlier in
the year due to mechanical failures, the Company successfully restored
its capacity to normal levels in the Third Quarter 2011. As a result,
there were no outages related to generation capacity and reliability to
customers during the Third Quarter 2011, as measured by the Average
Service Availability Index, was 99.96%.
During the Third Quarter CUC also continued its efforts to employ
renewable energy sources and invited interested parties to submit an
Expression of Interest and Preliminary Proposal for the financing,
construction, ownership and operation of renewable energy generation
facilities. It is the Company's intention to accept up to 13 megawatts
("MW") in aggregate of grid-connected renewable energy generators on
CUC's Third Quarter 2011 results and related Management's Discussion and
Analysis ("MD&A") for the Third Quarter 2011 are attached to this
release and 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 third quarter financial
results, the Cayman Islands economy, liquidity and capital resources,
capital expenditures and the business risks facing the Company. The
release and Third 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.
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
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.
PDF with caption: "Q3 2011 CUC MDA and FS". PDF available at: http://stream1.newswire.ca/media/2011/11/03/20111103_C2590_DOC_EN_6158.pdf
SOURCE Caribbean Utilities Company, Ltd.
For further information:
Vice President Finance and Chief Financial Officer
Telephone: (345) 914-1124