CUC Announces Second Quarter Results for the Period Ended June 30th, 2012
July 30 2012 - 2:23PM
PR Newswire (Canada)
Caribbean Utilities Company, Ltd. is listed for trading in United
States dollars on the Toronto Stock Exchange. GRAND CAYMAN, Cayman
Islands, July 31, 2012 /CNW/ - Caribbean Utilities Company, Ltd.
("CUC" or "the Company") announced today its unaudited results for
the Second Quarter ended June 30, 2012 (all figures in United
States dollars). Net earnings for the three months ended June 30,
2012 ("Second Quarter 2012") totalled $5.1 million, a decrease of
$0.8 million, or 14%, when compared to $5.9 million for the three
months ended June 30, 2011 ("Second Quarter 2011"). A 3% decline in
kilowatt-hour (" kWh") sales and higher depreciation costs and
finance charges were partially offset by decreased general and
administration, consumer service and maintenance costs for the
Second Quarter 2012 when compared to the Second Quarter 2011. Sales
for the Second Quarter 2012 totalled 139.9 million kWh, a decrease
of 5.0 million kWh, or 3%, in comparison to 144.9 million kWh for
the Second Quarter 2011. Sales were negatively impacted by rainy
weather conditions that reduced customer air-conditioning load. The
average monthly rainfall for the Second Quarter 2012 was 9.3 inches
as compared to an average rainfall of 4.2 inches for the same
period last year and May 2012 saw a record breaking 17.7 inches of
rainfall, the highest level on record in one month in over 9 years
and the highest level on record for the month of May in 20 years.
After the adjustment for dividends on the preference shares of the
Company, earnings on Class A Ordinary Shares for the Second Quarter
2012 were $5.0 million, or $0.18 per Class A Ordinary Share, a
decrease of $0.8 million from the $5.8 million, or $0.20 per Class
A Ordinary Share for the Second Quarter 2011. President and CEO,
Mr. Richard Hew, says, "With a continuing weak economy, relatively
high fuel prices and wetter than normal months, electricity sales
and earnings for the quarter under review were negatively impacted.
We continue to focus on controlling costs while meeting our
obligations to provide a safe and reliable electricity service to
our customers. A stronger economy with real economic growth is
required to provide any material improvement in financial
performance." The Company continues with the installation of its
Advanced Metering Infrastructure (AMI) system. Over five thousand
new AMI meters have been installed which allows CUC to measure,
collect and analyze energy usage, and communicate with the meters,
either on request or on a schedule from its central office.
Customers will be able to use the information provided by the AMI
system to become more energy efficient. "We are pleased to offer
this new technology to our customers. We anticipate that there will
be significant benefits to CUC in terms of efficiency in operation
as well as the enhanced service to electricity consumers." Mr. Hew
added. CUC's Second Quarter 2012 results and related Management's
Discussion and Analysis ("MD&A") for the period ended June 30,
2012 are 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 Second Quarter 2012
results, the Cayman Islands economy, liquidity and capital
resources, capital expenditures and the business risks facing the
Company. The release and Second 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. SOURCE
Caribbean Utilities Company, Ltd. PDF available at:
http://stream1.newswire.ca/media/2012/07/31/20120731_C4074_DOC_EN_16563.pdf
Caribbean Utilities Company, Ltd. CONTACT: Contact: Letitia
LawrenceVice President Finance and Chief Financial OfficerPhone:
(345) 914-1124E-Mail: llawrence@cuc.ky
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