CUC Announces Second Quarter Results for the Period Ended June 30th, 2012
Caribbean Utilities Company, Ltd. is listed for trading in United States
dollars on the Toronto Stock Exchange.
GRAND CAYMAN, Cayman Islands, July 31, 2012 /CNW/ – Caribbean Utilities
Company, Ltd. (TSX: CUP.U) (“CUC” or “the Company”) announced today its
unaudited results for the Second Quarter ended June 30, 2012 (all
figures in United States dollars).
Net earnings for the three months ended June 30, 2012 (“Second Quarter
2012″) totalled $5.1 million, a decrease of $0.8 million, or 14%, when
compared to $5.9 million for the three months ended June 30, 2011
(“Second Quarter 2011″). A 3% decline in kilowatt-hour (” kWh”) sales
and higher depreciation costs and finance charges were partially offset
by decreased general and administration, consumer service and
maintenance costs for the Second Quarter 2012 when compared to the
Second Quarter 2011.
Sales for the Second Quarter 2012 totalled 139.9 million kWh, a decrease
of 5.0 million kWh, or 3%, in comparison to 144.9 million kWh for the
Second Quarter 2011. Sales were negatively impacted by rainy weather
conditions that reduced customer air-conditioning load. The average
monthly rainfall for the Second Quarter 2012 was 9.3 inches as compared
to an average rainfall of 4.2 inches for the same period last year and
May 2012 saw a record breaking 17.7 inches of rainfall, the highest
level on record in one month in over 9 years and the highest level on
record for the month of May in 20 years.
After the adjustment for dividends on the preference shares of the
Company, earnings on Class A Ordinary Shares for the Second Quarter
2012 were $5.0 million, or $0.18 per Class A Ordinary Share, a decrease
of $0.8 million from the $5.8 million, or $0.20 per Class A Ordinary
Share for the Second Quarter 2011.
President and CEO, Mr. Richard Hew, says, “With a continuing weak
economy, relatively high fuel prices and wetter than normal months,
electricity sales and earnings for the quarter under review were
negatively impacted. We continue to focus on controlling costs while
meeting our obligations to provide a safe and reliable electricity
service to our customers. A stronger economy with real economic growth
is required to provide any material improvement in financial
The Company continues with the installation of its Advanced Metering
Infrastructure (AMI) system. Over five thousand new AMI meters have
been installed which allows CUC to measure, collect and analyze energy
usage, and communicate with the meters, either on request or on a
schedule from its central office. Customers will be able to use the
information provided by the AMI system to become more energy efficient.
“We are pleased to offer this new technology to our customers. We
anticipate that there will be significant benefits to CUC in terms of
efficiency in operation as well as the enhanced service to electricity
consumers.” Mr. Hew added.
CUC’s Second Quarter 2012 results and related Management’s Discussion
and Analysis (“MD&A”) for the period ended June 30, 2012 are
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
Second Quarter 2012 results, the Cayman Islands economy, liquidity and
capital resources, capital expenditures and the business risks facing
the Company. The release and Second 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 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.