Caribbean Utilities Company, Ltd. is listed for trading in
United States dollars on the
Toronto Stock Exchange under the trading symbol
"CUP.U".
GRAND
CAYMAN, Cayman
Islands, Feb. 9, 2024 /CNW/ - Caribbean Utilities
Company, Ltd. ("CUC or "the Company") announced its audited results
for the twelve months ended December 31,
2023 ("Fiscal 2023") (all figures are in United States Dollars).
Highlights for 2023 were as follows:
Financial Growth
- Net Earnings increased by 17% to $38.7
million.
- 8% in kilowatt-hour ("kWh") sales.
- 1% increase in total customers.
- 9% increase in system peak demand to 124.1 megawatts
("MW").
Investments in
Sustainability
- Capital expenditures of $97.6
million included projects to improve grid resiliency,
generation asset upgrades, and construction of infrastructure to
transition to lower carbon energy.
- Progress made on installation of the 20 MW Battery Energy
Storage System.
- Renewable Energy supply contracts reached 20.5MW in capacity
for customer programmes. The 5MW solar farm is in addition to this
capacity.
Carbon Reduction
Initiatives
- Completion of Request for Qualification for Liquefied Natural
Gas ("LNG") supply procurement.
- Lifecycle upgrades for 68MW generation are in progress with
expected completion of 2 of the units (32 MW) in 2024.
- Roll out of new Electric Vehicle ("EV") fleet and execution of
EV charging station programme.
Operational Achievements
- System Average Interruption Duration Index ("SAIDI") is the
tool used to measure the amount of outage time. In 2023, the
Company achieved an average annual outage duration time of 1.7
hours per customer which surpasses the
United States average 2022 results.
Community Commitment and
Recognition
- Completion of phase 1 of Land Acquisition Programme to support
future Renewable Energy facilities.
- Investors in People Gold certification for outstanding
achievements in employee support.
- Active participation in the National Energy Policy revision
through representation on the advisory council.
- Commitment to community development showcased through
partnerships and support programmes.
The Company continues to deliver reliable and safe electricity
service to our customers. The major projects that are aimed at
reducing costs and carbon emissions, namely, the lifecycle upgrades
of five engines (68MW capacity) extending their useful life,
improving fuel efficiency and preparing them to operate on natural
gas as well as the implementation of the battery energy storage
systems, have progressed well and we look forward to the completion
of these projects. During 2023 there was a new electricity peak
demand record of 124.1 MW set on Grand
Cayman. The annual average record temperatures experienced
and the associated increase in cooling load, along with a 1% growth
in connected customers, contributed to the peak demand growth and
the 8% increase in energy (kWh) sales.
Net Earnings and Sales
Revenues
Net earnings for Fiscal 2023 were $38.7
million, a $5.5 million
increase from net earnings of $33.2
million for the twelve months ended December 31, 2022 ("Fiscal 2022"). After the
adjustment for dividends on the preference shares of the Company,
earnings on Class A Ordinary Shares for Fiscal 2023 were
$37.7 million, or $1.00 per share, as compared to $32.2 million, or $0.86 per share for Fiscal 2022.
Sales in kWh for Fiscal 2023 were 727.0 million kWh which is an
increase of 52.9 million kWh or 8% compared to Fiscal 2022. The
increase in customer consumption and the rise in temperatures had
an impact on this increase. The average temperature for Fiscal 2023
was 84.0 degrees Fahrenheit compared to 82.9 degrees Fahrenheit in
Fiscal 2022. Total customers as of December
31, 2023, were 33,611, an increase of 492 customers or a 1%
increase from Fiscal 2022.
Fuel Factor consists of charges from diesel fuel and lubricating
oil costs, which are passed through to consumers on a two-month lag
basis with no mark-up. The average Fuel Cost Charge rate
charged to consumers for Fiscal 2023 was $0.24 per kWh, compared to the Fuel Cost Charge
rate of $0.27 per kWh for Fiscal
2022. The average fuel price per imperial gallon ("IG") for
the year ended December 31, 2023, was
$4.24, compared to $4.37 for the year ended December 31, 2022. In 2022 customers
also received credit in relation to fuel costs via the Cayman
Islands Government funded Fuel Relief programme and the CUC Fuel
Cost Relief programme.
"Strong earnings continue to place the Company in a position to
support appropriate levels of capital investment in infrastructure
projects that ensure that we continue to deliver safe, reliable,
least cost and sustainable energy to the people of Grand Cayman," said Mr. Richard Hew, President and Chief Executive
Officer.
Key Updates
In 2023, the Company maintained its Investors In People Gold
Level Accreditation. CUC has a primary goal to recruit, retain and
develop the most talented individuals within the utility industry.
The Company aims to be an organization that employees choose to
work for and wants to consistently demonstrate commitment to the
team through active participation in our community and training
programmes. This is the Company's third consecutive gold
certification and underscores the Company's commitment to creating
a positive work environment that fosters growth, innovation, and
excellence by continuously investing in our people.
The Company made good progress on preparing Grand Cayman for a transition to renewable
energy as a primary resource. Partnerships with key suppliers
through Engineering, Procurement and Construction contractors for
Solar plus Storage projects were secured and plant designs were
prepared for tender as the Company readied to bid for the expected
OfReg competitive solicitation for utility scale solar.
While the renewable energy market is being developed, the
Company continues to make meaningful strides with its contribution
to the National Energy Policy's carbon reduction goals. In 2023,
the Company rolled out the EV Charging Station programme. The
project aims to provide additional public charging stations
throughout the island. By creating this programme, customers now
have easier access and more options to charging stations. By the
end of 2024, it is anticipated that 20 additional charging stations
will be installed and activated across the island.
Considerable progress has been made on the Battery Energy
Storage project. At the end of January
2024, the Company will have completed the first set of the
10MW installation at its Hydesville, West Bay Sub-Station. The
batteries will assist with the transition from diesel generated
energy dependency and provide a reduction in carbon emissions and
cost savings for our customers.
The Request for Qualification ("RFQ") for the supply of
liquefied natural gas was completed in 2023, in line with the
National Energy Policy and the Company's Integrated Resource Plan.
CUC is committed to increasing the use of cleaner energy, reducing
energy costs and to reducing greenhouse gas emissions over the long
term. This Battery Energy Storage System and the conversion of the
engines to utilise natural gas will assist with these primary
goals.
Capital
Expenditures
Capital Expenditures for Fiscal 2023 were $97.6 million, an increase of $1.8 million from capital expenditures for Fiscal
2022. These expenditures were in primarily related to the following
projects:
- Distribution system extension and upgrades
- Generation replacements
- Lifecycle upgrades
- Alternate energy technologies
- Installation of utility scale battery storage, which is
ongoing,
- Facility and auxiliary asset replacement costs, and
other resiliency projects
The above capital projects will enhance the reliability and safe
delivery of electricity service to the customers of Grand Cayman. Most of these projects will also
assist in the reduction of carbon emissions, which is in line with
the Company's target of 60% reduction of emissions by 2030. These
projects will also assist the Company with providing better
cost-saving solutions to customers as CUC transitions to more
renewable energy sources.
CUC's Annual 2023 results and related Management's Discussion
and Analysis ("MD&A") are attached to this release and
incorporated by reference. The MD&A section of this
report contains a discussion of CUC's 2023 results for the
twelve-month period ended December 31,
2023, the Cayman Islands
economy, liquidity and capital resources, capital expenditures and
the business risks facing the Company. The release and 2023 annual
results 2023 MD&A can be accessed at
www.cuc-cayman.com (Investor Relations/Press Releases) and at
www.sedarplus.ca.
The principal activity of the Company is to generate, transmit
and distribute electricity in its licence area of
Grand Cayman, Cayman Islands, pursuant to a 20-year
Transmission & Distribution ("T&D") Licence and a
25-year non-exclusive Generation Licence (the "Generation
Licence" and together with the T&D licence, the "Licences")
granted by the Cayman Islands Government (the
Government", "CIG"). The T&D Licence, which expires in
April 2028, contains provisions for an automatic 20-year
renewal and the Company has reasonable expectation of renewal
until April 2048. The Generation
Licence expires in November 2039.
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.