CUC Announces Third Quarter Results for the Period Ended September 30, 2011
November 01 2011 - 8:56AM
PR Newswire (Canada)
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, Nov. 3, 2011 /CNW/ -
Caribbean Utilities Company, Ltd. ("CUC" or the "Company")
announced today its unaudited results for the three months ended
September 30, 2011 ("Third Quarter 2011") (all figures are in
United States dollars). Electricity sales revenues decreased $0.1
million, or 1%, to $19.0 million for the Third Quarter 2011, from
$19.1 million for the three months ended September 30,( )2010,
("Third Quarter 2010") as a result of a 1% kilowatt-hour ("kWh")
sales decline experienced quarter over quarter. Sales for the Third
Quarter 2011 totalled 151.2 million kWh, a decrease of 1.5 million
kWh, or 1%, in comparison to 152.7 million kWh for the Third
Quarter 2010. Analysis of electricity sales data indicate a
reduction in electricity consumption which may be caused by energy
conservation in response to high fuel costs. Fuel rates in the
Third Quarter 2011 were the highest for 2011 averaging $4.74 per
Imperial Gallon (IG) compared to $3.47 per IG for the same period
last year. Reductions experienced in the island's population also
negatively impacted sales for the Third Quarter 2011 as compared to
the Third Quarter 2010. Net earnings for the Third Quarter 2011
totalled $6.3 million, a decrease of $0.3 million, or 5%, when
compared to $6.6 million for the Third Quarter 2010. A 1% decline
in kWh sales and higher general and administration, transmission
and distribution and finance costs were partially offset by a
decrease in consumer service and maintenance costs for the Third
Quarter 2011 when compared to the Third Quarter 2010. After the
adjustment for dividends on the preference shares of the Company,
earnings on Class A Ordinary Shares for the Third Quarter 2011 were
$6.1 million, or $0.22 per Class A Ordinary Share, a decrease of
$0.4 million when compared to $6.5 million, or $0.23 per Class A
Ordinary Share for the Third Quarter 2010. CUC's President and
Chief Executive Officer Mr. Richard Hew said, "The weak economy and
high fuel prices continue to negatively impact sales and earnings.
The Company continues to respond by containing discretionary
capital and operational expenditures, while operating in an
efficient manner and providing a safe and reliable service to our
customers." Following the shortfall in generation capacity
experienced earlier in the year due to mechanical failures, the
Company successfully restored its capacity to normal levels in the
Third Quarter 2011. As a result, there were no outages related to
generation capacity and reliability to customers during the Third
Quarter 2011, as measured by the Average Service Availability
Index, was 99.96%. During the Third Quarter CUC also continued its
efforts to employ renewable energy sources and invited interested
parties to submit an Expression of Interest and Preliminary
Proposal for the financing, construction, ownership and operation
of renewable energy generation facilities. It is the Company's
intention to accept up to 13 megawatts ("MW") in aggregate of
grid-connected renewable energy generators on Grand Cayman. CUC's
Third Quarter 2011 results and related Management's Discussion and
Analysis ("MD&A") for the Third Quarter 2011 are attached to
this release and incorporated by reference and can be accessed by
clicking the link below:
http://preview1.newswire.ca/media/2011/11/03/20111103-549337-6158-07ae0ebc-d185-454a-9054-9e5098abb463.pdf
The Management's Discussion and Analysis section of this report
contains a detailed discussion of CUC's unaudited third quarter
financial results, the Cayman Islands economy, liquidity and
capital resources, capital expenditures and the business risks
facing the Company. The release and Third Quarter Report 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 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. PDF with caption: "Q3 2011 CUC
MDA and FS". PDF available at:
http://stream1.newswire.ca/media/2011/11/03/20111103_C2590_DOC_EN_6158.pdf
Caribbean Utilities Company, Ltd. CONTACT: Letitia LawrenceVice
President Finance and Chief Financial OfficerTelephone: (345)
914-1124E-mail: llawrence@cuc.ky
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