CUC Announces Third Quarter Results for the Period Ended September 30th, 2012
Caribbean Utilities Company, Ltd. is listed for trading in United States
dollars on the Toronto Stock Exchange
GRAND CAYMAN, Cayman Islands, Nov. 1, 2012 /CNW/ – Caribbean Utilities
Company, Ltd. (TSX: CUP.U) (“CUC” or “the Company”) announced today its
unaudited results for the Third Quarter ended September 30(th) 2012 (all figures in United States dollars).
Net earnings for the three months ended September 30, 2012 (“Third
Quarter 2012″) totalled $6.6 million, an increase of $0.3 million, or
5%, when compared to $6.3 million for the three months ended September
30, 2011 (“Third Quarter 2011″). Lower finance charges and an increase
in other income were partially offset by a 1% decline in kilowatt-hour
(kWh) sales and higher depreciation costs for the Third Quarter 2012
when compared to the Third Quarter 2011.
After the adjustment for dividends on the preference shares of the
Company, earnings on Class A Ordinary Shares for the Third Quarter 2012
were $6.5 million, an increase of $0.4 million, or 7%, from $6.1
million, for the Third Quarter 2011. Earnings per Class A Ordinary
Share for the Third Quarter 2012 were $0.22, comparable to Earnings per
Class A Ordinary Share for the Third Quarter 2011.
Net earnings for the nine months ended September 30, 2012 decreased by
11% to $13.6 million from $15.3 million for the same period in 2011.
Earnings per Class A Ordinary Share for the nine months ended September
30, 2012 were $0.46, down from $0.53 per Class A Share for the same
period last year. This decline was driven by higher depreciation costs
and a 1% decline in kWh sales.
President and CEO, Mr. Richard Hew, says, “Electricity sales for this
quarter and earnings year to date were negatively impacted by the
continuing weak economy, relatively high fuel prices and wetter than
normal months. However, despite these circumstances, the Company
continues to meet its obligations of providing a safe, reliable and
efficient service to the residents of Grand Cayman while providing a
reasonable return to shareholders through prudent management of its
The Company’s reliability as measured by the Average System Availability
Index was 99.95% for Third Quarter 2012 reflecting the percentage of
time power is available to customers. Capital expenditures for the
nine months ended September 30, 2012 totaled $21.6 million including
$8.5 million for Distribution System upgrades, $4.1 million for
Generation Asset upgrades and $2.5 million for the Company’s Advanced
Metering Infrastructure (“AMI”) system.
The installation of the new AMI system continued over the quarter under
review. Over seven thousand, four hundred new meters have already been
installed. The AMI system allows CUC to measure, collect and analyze
energy usage more effectively, to communicate directly with metering
services such as electricity meters, either on request or on a
schedule, and to shorten the delivery time for various customer
services. The AMI project is expected to be completed in the first
quarter of 2014.
Earlier this year, the Electricity Regulatory Authority (“ERA”)
solicited Request for Proposals (RFP) for additional generation
capacity from six Qualified Bidders (including CUC). CUC submitted its
bid on July 16, 2012. This competitive solicitation process is in
response to the certificate of need issued by the Company in November
2011, driven primarily by the upcoming retirements of some of the
Company’s generating units. The projected date for 18 MW of additional
generation capacity is July 2014, with a second increment of 18 MW of
capacity required up to three years later in 2017 with timing dependent
on economic growth and development of the Grand Cayman economy and the
related growth in demand for electricity. The ERA’s selection of the
successful bidder is expected before the end of 2012 to meet the
projected commissioning date of July 2014.
CUC’s Third Quarter results and related Management’s Discussion and
Analysis (“MD&A”) for the period ended September 2012 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
2012 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 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.