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, May 1, 2024 /CNW/ - Caribbean Utilities
Company, Ltd. ("CUC or "the Company") announced its consolidated
unaudited results for the three months ended March 31, 2024 ("First Quarter 2024" or "Q1
2024") (all figures stated in United
States Dollars).
Highlights for Q1 2024 were as follows:
Financial Growth
- Net Earnings for Q1 2024 totaled $6.2
million, 18% increase compared to Q1 2023.
- 6% increase in kilowatt-hour ("kWh") sales when compared to
three months ended March 31, 2023
("First Quarter 2023" or "Q1 2023").
- 2% increase in total customers when compared to Q1 2023.
Capital Expenditures
- Investments in sustainability includes purchase of more
electric vehicles to add to the fleet, the utility scale Battery
Energy Storage System project ("BESS") and the public electric
vehicle charging station programme.
- Total capital expenditures for the three months ended
March 31, 2024, totaled $19.3 million which included projects to improve
grid resiliency, generation asset upgrades, and construction of
infrastructure to transition to lower carbon energy.
- Two 10-megawatt ("MW") BESS located at Hydesville and Prospect
sub-stations. Systems will be online in the first half of 2024 and
the systems are anticipated to lower fuel costs and improve fuel
efficiency by up to 5-6%.
Carbon Reduction Initiatives
- Request for Qualification for the provision of Liquid Natural
Gas as a transitional fuel was completed in 2023, this project is
progressing with the Request for Proposal to be issued in
2024.
- Lifecycle upgrades for first generating unit were completed and
work has commenced on the second of five units planned for upgrade.
Upgrades will improve fuel efficiency and allow the engines to be
easily converted to dual fuel when LNG is an option on Grand Cayman.
- 20 Electric Vehicle ("EV") charging stations installed with an
anticipated further 20 charging stations by the end of 2024.
Community Commitment and Recognition
- Continued commitment to community development showcased through
partnerships and support programmes. Programmes assisted in Q1 2024
were Cayman Athletics through the hosting of the CARIFTA trials and
Cayman Swimming through the hosting of the CUC Sea Swim.
- Green Diamond Award recipient in 2023 for recycling excellence
and recycling over 2.7 million pounds of scrap metal, cable,
transformers and other recyclable material.
The Company continues to deliver reliable and safe electricity
service to our customers. During the First Quarter, the Company
continued to make progress on major projects that are aimed at
reducing costs and carbon emissions.
Net Earnings and Sales Revenues
Net earnings for Q1 2024 were $6.2
million, a $1.0 million
increase when compared to net earnings of $5.2 million for Q1 2023. After the adjustment
for dividends on the preference shares of the Company, earnings on
Class A Ordinary Shares for Q1 2024 were $6.0 million, or $0.16 per share, as compared to $5.1 million, or $0.14 per share for Q1 2023.
Sales in kWh for Q1 2024 were 168.1 million kWh which is an
increase of 9.3 million kWh or 6% compared to Q1 2023. The increase
was due to the 7% sales growth in both residential and large
commercial customers. For large commercial customers this increase
was driven by economic growth and for residential customers this
growth was mainly attributed to increased average consumption. The
average temperature for Q1 2024 was 80.8 degrees Fahrenheit
compared to the average temperature of 80.6 degrees Fahrenheit in
Q1 2023. Rising temperatures contributed to the overall growth in
consumption for customers.
Fuel factor and renewable energy costs are passed through to
customers with no mark-up. Fuel Factor consists of charges from
diesel fuel and lubricating oil costs, which are passed through to
consumers on a two-month lag basis. The average Fuel Cost Charge
rate charged to consumers for Q1 2024 was $0.23 per kWh, compared to the Fuel Cost Charge
rate of $0.24 per kWh for Q1
2023.
"The Company continues to focus on our capital investment and
infrastructure projects with an emphasis on sustainability. We
continue to make investments that will allow CUC to increase fuel
efficiency and reduce our reliance on diesel all while continuing
to safely deliver reliable and least cost energy," said Mr.
Richard Hew, President and Chief
Executive Officer.
Key Updates
In Q1 2024 the Company continued to focus on its carbon
reduction efforts through the EV charging station programme. The EV
charging station programme was adopted as an action item resulting
from the Company's goal to abide by and embrace the current
National Energy Policy which outlined the need to provide more
options for electric vehicles throughout the island.
Two 10MW BESS have been placed separately at the Hydesville and
Prospect sub-station locations and it is anticipated that these
systems will be installed and in use by the end of May 2024. These storage systems will allow for
further renewable energy, upon approval by the regulator, on the
grid and allow for savings of up to $5
million per year in fuel costs.
Capital Expenditures
Capital Expenditures for the three months ended March 31, 2024, were $19.3
million, a decrease of $3.5
million or 15% in comparison to the $22.8 million in capital expenditures for the
three months ended March 31, 2023.
The expenditures for the three months ended March 31, 2024, were primarily related to:
- Distribution system extension and upgrades
- Generation replacements
- Lifecycle upgrades
- Alternate energy technologies
- Installation of BESS,
- 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. The Company continues to be
committed to carbon reduction targets of 60% by 2030 and projects
that will allow for cost reduction savings for the customers of
Grand Cayman.
CUC's First Quarter 2024 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 unaudited First Quarter 2024
results, the Cayman Islands
economy, liquidity and capital resources, capital expenditures and
the business risks facing the Company. The release and the First
Quarter 2024 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 License" 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.