Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange
GRAND CAYMAN, Cayman Islands, Nov. 3, 2017 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its unaudited results for the Third Quarter ended September 30, 2017 (all figures in United States dollars).
Net earnings for the three months ended September 30, 2017 ("Third Quarter 2017") totalled $7.7 million, an increase of $0.3 million when compared to net earnings of $7.4 million for the three months ended September 30, 2016 ("Third Quarter 2016"). This increase was due mainly to a 5% increase in kWh sales. This item was partially offset by higher depreciation and general and administration costs.
Net earnings for the nine months ended September 30, 2017 totaled $18.3 million, a decrease of $1.5 million when compared to net earnings of $19.8 million for the nine months ended September 30, 2016. This decrease was due mainly to higher depreciation and finance charges. These items were partially offset by higher electricity sales revenues.
After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares were $7.6 million and $18.0 million, or $0.23 and $0.55, respectively, for Third Quarter 2017 and the nine months ended September 30, 2017, compared to earnings on Class A Ordinary Shares of $7.3 million and $19.5 million, or $0.22 and $0.60, respectively, per Class A Ordinary Share for Third Quarter 2016 and the nine months ended September 30, 2016.
Capital expenditures for the three months ended September 30, 2017 were $11.0 million, a $2.6 million, or 31% increase from $8.4 million in capital expenditures for the three months ended September 30, 2016. Capital expenditures for the nine months ended September 30, 2017 were $34.3 million, a $2.4 million, or 7% decrease from $36.7 million in capital expenditures for the nine months ended September 30, 2016. The Company continues to invest in capital infrastructure so that our customers can be provided with a safe and reliable electricity service.
Sales for the Third Quarter 2017 totalled 173.7 million kilowatt-hours ("kWh"), an increase of 8.3 million kWh in comparison to 165.4 million kWh for the Third Quarter 2016.
Sales for the nine months ended September 30, 2017 totaled 471.3 million kWh, an increase of 14.1 million kWh in comparison to 457.2 million kWh for the nine months ended September 30, 2016. Sales were positively impacted by an increase in average residential consumption and higher overall customer numbers when compared to the same period last year.
The total number of customers as at September 30, 2017 were 29,017, an increase of 519 customers, or 2%, compared to 28,498 customers as at September 30, 2016.
On August 29, 2017, CUC experienced a new system peak load of 105.6 MW. CUC's installed generating capacity is 161 MW.
President and CEO, Mr. Richard Hew, says, "CUC remains committed to providing least-cost, safe, and reliable electricity service to our consumers. The Company's Third-Quarter and year-to-date results are in line with expectations considering that 2017 is the first full year of costs associated with the 40 MW plant. In addition, we achieved the Investors in People Gold standard during this Quarter, our customer numbers increased and we experienced a new peak load. Investors in People is a business improvement tool designed to advance an organisation's performance through its people. As a result, the Company is well-positioned to achieve its overall objectives for this financial year."
CUC's Third Quarter results and related Management's Discussion and Analysis ("MD&A") for the period ended September 30 2017 are attached to this release and incorporated by reference and can be accessed by clicking the link at the end of this release.
The MD&A section of this report contains a discussion of CUC's unaudited 2017 Third Quarter results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and Third 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 inthe 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:firstname.lastname@example.org
Caribbean Utilities Company, Ltd., known locally as "CUC", commenced operations as the only public electric utility in Grand Cayman, the largest of the three Cayman Islands, in May 1966. The Company has been through many challenging and exciting periods but has kept pace with Grand Cayman's rapid development for over 40 years. Today we are considered one of the most reliable and...