CUC Announces First Quarter Results for the Period Ended March 31st, 2012
April 29 2012 - 10:37PM
PR Newswire (Canada)
Caribbean Utilities Company, Ltd. is listed for trading in United
States dollars on the Toronto Stock Exchange. GRAND CAYMAN, Cayman
Islands, May 2, 2012 /CNW/ - Caribbean Utilities Company, Ltd.
("CUC" or "the Company") announced today its unaudited results for
the First Quarter ended March 31st, 2012 (all figures in United
States dollars). Net earnings for the three months ended March 31,
2012 ("First Quarter 2012") were $1.9 million, a decrease of $1.2
million, or 39%, when compared to $3.1 million for the three months
ended March 31, 2011 ("First Quarter 2011"). A 1% increase in kWh
sales and lower maintenance costs were offset by an increase in
general and administration, financing and depreciation costs for
the First Quarter 2012 when compared to the First Quarter 2011.
President and CEO, Mr. Richard Hew, says, "The first quarter is
normally our weakest quarter of the year in terms of sales and
earnings due to cooler weather. Earnings for the First
Quarter 2012 were further impacted by one-time restructuring costs
but overall were in line with our expectations." Electricity sales
revenues increased $0.1 million, or 1%, to $15.9 million for the
First Quarter 2012, from $15.8 million for the First Quarter
2011. Electricity sales revenues increased as a result of a
1% kWh sales increase and 2% customer number growth experienced
quarter-over-quarter. During the first three months of 2012, the
Company completed the review of proposals received in response to
its request for Expression of Interest and Preliminary Proposal for
the financing, construction, ownership and operation of up to 13 MW
of renewable energy generation facilities. Discussions are
ongoing with the prospective alternative energy providers. Also,
during the period under review, DataLink, Ltd ("DataLink"), the
wholly owned subsidiary of CUC, received its licence from the
Information and Communications Technology Authority ("ICTA") which
permits DataLink to provide fibre optic infrastructure and other
information and communication technology (ICT) services to the ICT
industry. Mr. Hew added, "We are excited about the future potential
of our subsidiary, DataLink, Ltd. now that we have received its
licence to operate as an information and communications technology
service provider." CUC's base rates (excluding fuel costs) have not
changed since 2009 and remain lower than they were in 2002.
In March 2012 the Company submitted the calculation of a base rate
increase of 0.7% to the Electricity Regulatory Authority for
verification which would be effective for bills rendered from June
2012, as prescribed by the Rate Cap and Adjustment Mechanism of
CUC's Transmission & Distribution Licence. CUC's First Quarter
results and related Management's Discussion and Analysis
("MD&A") for the period ended March 31st 2012 are
attached to this release and incorporated by reference and can be
accessed by clicking the link below at the end of this release. The
MD&A section of this report contains a discussion of CUC's
unaudited 2012 First Quarter results, the Cayman Islands economy,
liquidity and capital resources, capital expenditures and the
business risks facing the Company. The release and First 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 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 available at:
http://stream1.newswire.ca/media/2012/05/02/20120502_C3663_DOC_EN_13086.pdf
Caribbean Utilities Company, Ltd. CONTACT: Letitia LawrenceVice
President Finance and Chief Financial OfficerPhone: (345)
914-1124E-Mail: llawrence@cuc.ky
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