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. (TSX:
CUP.U) ("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