Caribbean Utilities Company, Ltd. is listed for trading in
United States dollars on the
Toronto Stock Exchange.
GRAND CAYMAN, Cayman Islands, Nov. 6,
2015 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U)
("CUC" or "the Company") announced today its unaudited results for
the Third Quarter ended September 30
2015 (all figures in United States
dollars).
Net earnings for the three months ended September 30, 2015 ("Third Quarter 2015") were
$7.9 million, an increase of
$1.7 million when compared to net
earnings of $6.2 million for the
three months ended September 30, 2014
("Third Quarter 2014"). This increase was due mainly to higher
electricity sales revenues, lower consumer services' costs, lower
finance charges, and lower transmission and distribution costs.
These items were partially offset by higher depreciation and
maintenance costs in the Third Quarter 2015. Third Quarter
2014 consumer services' costs and transmission and distribution
costs were negatively impacted by one-time provision
adjustments.
After the adjustment for dividends on the preference shares of
the Company, earnings on Class A Ordinary Shares for the Third
Quarter 2015 were $7.8 million, or
$0.25 per Class A Ordinary Share,
compared to earnings on Class A Ordinary Shares of $6.1 million or $0.21 per Class A Ordinary Share for the Third
Quarter 2014.
Net earnings for the nine months ended September 30, 2015 totalled $16.7 million, an increase of $1.3 million when compared to net earnings of
$15.4 million for the nine months
ended September 30, 2014. This
increase was due mainly to higher electricity sales, lower finance
charges, lower consumer services costs, and higher other
income. These items were partially offset by higher
depreciation costs and lower foreign exchange gain.
After the adjustment for dividends on the preference shares of
the Company, earnings on Class A Ordinary Shares for the nine
months ended September 30, 2015 were
$16.4 million, or $0.53 per Class A Ordinary Share, compared to
earnings on Class A Ordinary Shares of $15.1
million or $0.52 per Class A
Ordinary Share for the nine months ended September 30, 2014.
Sales for the Third Quarter 2015 totalled 160.4 million kilowatt
hours ("kWh"), an increase of 7.2 million kWh in comparison to
153.2 million kWh for the Third Quarter 2014 driven primarily by an
increase in large commercial sales, warmer weather conditions, and
higher overall customer numbers.
Sales for the nine months ended September
30, 2015 totalled 435.4 million kWh, an increase of 7.0
million kWh in comparison to 428.4 million kWh for the nine months
ended September 30, 2014. Sales
for the nine months ended September 30,
2015 were positively impacted by an increase in large
commercial sales and higher overall customer numbers when compared
to the same period last year.
Total customers at the end of the period were 28,035
representing a 2% increase when compared to the number of customers
for the period ending September 30,
2014.
President and CEO, Mr. Richard
Hew, says, "I am pleased with the positive results recorded
during the Third Quarter 2015. The Company remains focused on
providing a safe, reliable and efficient service to our customers
across Grand Cayman while at the
same time adopting technologies that are sustainable and more
environmentally friendly."
Capital expenditures for the Third Quarter 2015 were
$31.9 million, a $24.8 million, or a 349% increase from
$7.1 million in capital expenditures
for the Third Quarter 2014. This increase in capital expenditures
is driven by costs associated with the new Generation Expansion
Project at CUC's North Sound Road Power Plant.
Work on the Generation Expansion Project is progressing
according to plan. When completed the new engine room will house
two 18.5 MW diesel generating units, one 2.7 MW waste heat recovery
steam turbine, and associated auxiliary equipment. The
project cost is estimated at $85
million. It is expected that the units will be commissioned
by June 2016.
Significant progress is also being made in the area of renewable
energy options. The Company has recently completed negotiations on
a Power Purchase Agreement ("PPA") with Entropy Cayman Solar
Limited that will construct a 5 MW solar photovoltaic power plant
in Bodden Town. It is anticipated that the solar plant will
be completed and producing electricity to the grid by October 2016.
The Consumer Owned Renewable Energy ("CORE") programme continues
to attract customers. During the Third Quarter 2015, 27 additional
customers were approved to participate in the programme. The
CORE programme allows customers to connect small scale solar
systems or wind turbines to CUC's distribution system and to reduce
their monthly energy bills by generating their own electricity
while remaining connected to the CUC grid. Total capacity approved
under the CORE programme is estimated at 3.3 MW. Under the
Company's Transmission & Distribution ("T&D") Licence, the
CORE programme and the 5 MW solar photovoltaic power plant are cost
neutral to CUC.
Reliability of Service to customers as measured by the Average
Service Availability Index was 99.97% for the Third Quarter
2015.
Electricity consumers also continue to enjoy the benefit of
lower fuel costs. The Company's average price per Imperial
Gallon of fuel for the Third Quarter 2015 decreased 37% to
$2.93, compared to $4.65 for the Third Quarter 2014. This
decrease resulted in an average Fuel Cost Charge rate billed to
residential consumers for the Third Quarter 2015 of $0.19 per kWh, compared to the average Fuel Cost
Charge rate of $0.28 per kWh for the
Third Quarter 2014. The residential consumer who consistently uses
1,000 kWh per month would have seen their monthly bills decline by
approximately $94.00 in the Third
Quarter 2015 when compared to the Third Quarter 2014 as a result of
the lower Fuel Cost Charge Rate. CUC passes through all fuel
costs to consumers on a two-month lag basis with no mark-up.
CUC's Third Quarter results and related Management's Discussion
and Analysis ("MD&A") for the period ended September 30,
2015 are attached to this release and incorporated by reference.
They 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 2015 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 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.