Caribbean Utilities Company, Ltd. is listed for trading in
United States dollars on the
Toronto Stock Exchange.
GRAND CAYMAN, Cayman Islands, Feb. 6,
2014 /CNW/ - Caribbean Utilities Company, Ltd. (TSX:CUP.U)
("CUC" or "the Company") announced today its unaudited results for
the Fourth Quarter ended December 31,
2013 (all figures in United
States dollars).
Net earnings for the three months ended
December 31, 2013 ("Fourth Quarter
2013") were $5.8 million, a
$1.7 million increase when compared
to $4.1 million for the three months
ended December 31, 2012 ("Fourth
Quarter 2012"). A 6% increase in kilowatt ("kWh") sales, lower
operating expenditure and higher other income contributed to the
Fourth Quarter increase in net earnings. These items were partially
offset by higher finance charges for the Fourth Quarter 2013 when
compared to the Fourth Quarter 2012.
After the adjustment for dividends on the
preference shares of the Company, earnings on Class A Ordinary
Shares for the Fourth Quarter 2013 were $5.2
million, or $0.18 per Class A
Ordinary Share, as compared to $3.5
million, or $0.12 per Class A
Ordinary Share for the Fourth Quarter 2012.
Net earnings for the twelve months ended
December 31, 2013 were $20.4 million. This represents a $2.7 million increase from net earnings of
$17.7 million for the twelve months
ended December 31, 2012. This
increase is attributable to a 1% increase in kWh sales, base rate
increases effective June 1, 2012 and
June 1, 2013 respectively, lower
general and administration and maintenance costs and increased
other income. These items were partially offset by higher
depreciation costs for the twelve months ended December 31, 2013 when compared to the twelve
months ended December 31, 2012.
After the adjustment for dividends on the
preference shares of the Company, earnings on Class A Ordinary
Shares for the twelve months ended December
31, 2013 were $19.5 million,
or $0.68 per Class A Ordinary Share,
as compared to $16.8 million, or
$0.58 per Class A Ordinary Share for
the twelve months ended December 31,
2012.
For the Fourth Quarter 2013, kWh sales were
140.3 million compared to 132.4 million for the Fourth Quarter
2012. Sales were driven by warmer weather conditions which impacted
customer air conditioning usage. The average monthly
temperature for the Fourth Quarter 2013 was 2.7 degrees Fahrenheit
higher than the average monthly temperature experienced during the
Fourth Quarter 2012.
Electricity sales revenue increased $1.3 million in the Fourth Quarter 2013 to
$18.1 million when compared to
electricity sales revenues of $16.8
million for the Fourth Quarter 2012. This increase is due to
a 6% increase in kWh sales and the 1.8% base rate increase which
took effect June 1st,
2013.
For the twelve months ended December 31, 2013 kWh sales were 555.7 million
kWh, an increase of 7.9 million kWh when compared to 547.8 million
for the year ended December 31,
2012. Sales were positively impacted by a 1% growth in
customer numbers and warmer weather conditions that affected
customer air conditioning use. The average monthly
temperature for 2013 was 82.2 degrees Fahrenheit compared to 81.9
degrees for 2012.
Electricity sales revenue increased $2.0 million in the year ended December 31, 2013 to $71.1
million when compared to electricity sales revenues of
$69.1 million for the year ended
December 31, 2012. The increase in
electricity sales revenues for the year ended December 31, 2013 was due to a 1% increase in
total customers, a 1% increase in kWh sales and the 0.7% and 1.8%
base rate increases effective June
1st 2012 and June
1st 2013 respectively.
Total customers as at December 31, 2013 were 27,364, an increase of 1%
compared to 27,035 customers as at December
31, 2012. The Company connected 188 customers for the three-
month period ended December 31, 2013.
These connections comprised of 159 residential customers and 29
commercial customers.
In December 2013,
the Electricity Regulatory Authority ("ERA") approved the Company's
2014-2018 Capital Investment Plan (CIP) in the amount of
$143 million for non-generation
expansion costs. During this period of continued low growth, CIP
initiatives focus on improving reliability of service and
operational efficiencies. Generation expansion projects are
subject to competitive bid.
In October 2013
the Company issued a Certificate of Need ("CON") for new generating
capacity. This action was driven primarily by the upcoming
retirements of some of the Company's generating units which will
begin in 2014. The CON listed a requirement of 36 megawatts
(MW) of generating capacity, with 18 MW to be operational no later
than April 2016 and the remaining 18
MW to be operational no later than May
2016.
In November 2013,
the ERA issued a solicitation for Statements of Qualifications from
prospective bidders. The deadline for submissions was
December 20, 2013 and the ERA has
since announced the listing of qualified bidders and issued a
request for proposals.
During the period under review the Company
resumed the roll out of new meters as part of the Advanced Metering
Infrastructure project. Following the installation of the first
7,000 meters, further installation was delayed to allow for
manufacturer software and hardware upgrades. This project
will bring efficiencies in the meter reading and services such as
performing disconnects and reconnects directly from CUC's offices,
providing real-time electricity consumption information and a
'pay as you go' payment option to assist consumers with the
monitoring and controlling of their electricity consumption. The
project should be substantially completed by the end of 2014.
Richard Hew,
President and Chief Executive Officer of the Company, stated, "The
Fourth Quarter 2013 yielded overall positive results in sales,
earnings and other developments with the announcement of the
companies which were selected to develop large scale renewables,
and the start of the competitive solicitation process for firm
generation. Large scale renewables, combined with the replacement
of older diesel generators by more efficient and firm generation,
will bring price, reliability and environmental benefits to
consumers."
During the Fourth Quarter 2013, two Renewable
Energy developers were chosen to provide large scale renewable
energy to the CUC grid. This process is subject to approval by the
ERA of the negotiated final Power Purchase Agreements. New
Generation Power ("NGP") has proposed to provide 3 MW of wind
generation and 5 MW of solar generation and International Electric
Power LLC (IEP) has proposed to provide an additional 5 MW of solar
power. It is estimated that the projects will be completed in 2015,
barring regulatory or other delays.
CUC's Fourth Quarter Report for the period ended
December 31, 2013 is attached to this
release. This report contains a detailed discussion of CUC's
unaudited fourth quarter financial results, the Cayman Islands economy, liquidity and capital
resources, capital expenditures and the business risks facing the
Company. The release and Fourth 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.
CUC - 4th Quarter 2013 Report
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/2014/02/06/20140206_C8339_DOC_EN_36411.pdf