Caribbean Utilities Company, Ltd. is listed for trading in
United States dollars on the
Toronto Stock Exchange
GRAND CAYMAN,
Cayman Islands, Nov. 1, 2013 /CNW/ - Caribbean Utilities Company,
Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its
unaudited results for the Third Quarter ended September 30th 2013 (all figures in
United States dollars).
Net earnings for the three months ended
September 30, 2013 ("Third Quarter
2013") totalled $6.0 million, a
decrease of $0.6 million when
compared to $6.6 million for the
three months ended September 30, 2012
("Third Quarter 2012"). This decrease was due primarily to
higher depreciation and finance charges and flat electricity sales
revenues. These items were partially offset by lower general and
administration and maintenance costs. Maintenance costs
declined due to the nature of certain scheduled capital projects
for 2013 which are deemed to result in upgrades that extend the
life or increase the output of generating units.
After the adjustment for dividends on the
preference shares of the Company, earnings on Class A Ordinary
Shares for the Third Quarter 2013 were $5.9
million, or $0.21 per Class A
Ordinary Share, a decrease of $0.6
million from the $6.5 million,
or $0.22 per Class A Ordinary Share
for the Third Quarter 2012.
Sales for the Third Quarter 2013 totalled 145.7
million kiloWatt ("kWh"), a decrease of 3.4 million kWh in
comparison to 149.1 million kWh for the Third Quarter 2012.
Third Quarter 2013 kWh sales were negatively impacted by a
reduction in customer air conditioning load due to wetter weather
conditions, when compared to the same period last year. The
average monthly rainfall for the Third Quarter 2013 was 7.6 inches
as compared to average monthly rainfall of 6.5 inches for Third
Quarter 2012.
Total customers as at September 30, 2013 were 27,176, an increase of
282 customers, or 1%, compared to 26,894 customers as at
September 30, 2012. Customer numbers
continue to grow but at a slower rate when compared to recent
quarters.
President and CEO, Mr. Richard Hew, says, "Flat sales combined with
higher finance and depreciation charges stemming from our long-term
commitment to investment in infrastructure which is required to
provide a safe and reliable service, produced a decline in earnings
when compared to the same quarter last year. Despite this short
term decline, earnings for the the nine months ended September 30, 2013 remain ahead of earnings for
the same period in 2012. The Company maintains a positive outlook
for an improved economy in the future.
Net earnings for the nine months ended
September 30, 2013 were $14.7 million, an increase of $1.1 million when compared to net earnings of
$13.6 million for the nine months
ended September 30, 2012.
In July 2013, the
Electricity Regulatory Authority ("ERA") announced its decision to
cancel the solicitation process for firm generating capacity that
was being sought for installation in 2014. In October 2013, the Company and the ERA agreed to a
temporary generation plan in order to meet the reserve margin
requirements for the summer of 2014 and until those firm capacity
needs can be met.
The Company believes that there are economic and
environmental benefits to be derived from the use of renewable
energy sources in place of some of the diesel fuel presently used
in our generators. During the period under review, the
Company continued its discussions with New Generation Power ("NGP")
and International Electric Power ("IEP"), two U.S. based renewable
energy developers selected through a solicitation process to
provide renewable energy to CUC's grid under power purchase
agreements.
During the period under review, the Company won
two of the top awards at the Caribbean Electric Utility Services
Corporation ("CARILEC") 2012 Benchmarking Awards. The award for
Best Performance in Transmission and Distribution Services was
given based on CUC's regional leading performance in efficiency,
productivity, reliability and cost effectiveness. The second award
was for Best in Performance in Commercialization Services and was
based on customer service quality, cost effectiveness and
productivity. Participants were evaluated for these awards based on
their performances in the 2012 Traditional Benchmark Study.
CUC's Third Quarter results and related
Management's Discussion and Analysis ("MD&A") for the period
ended September 2013 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 2013 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.
http://files.newswire.ca/520/CUC_Q3_2013_Report.pdf
SOURCE Caribbean Utilities Company, Ltd.
PDF available at:
http://stream1.newswire.ca/media/2013/11/01/20131101_C9502_DOC_EN_32827.pdf