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 , Nov. 5, 2024
/CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U) ("CUC" or
the "Company") has announced its consolidated unaudited results for
the three and nine months ended September 30, 2024, (all figures stated in
United States
Dollars).
Highlights for the period were as follows:
- Net Earnings for the three months ended September 30, 2024 ("Third Quarter 2024" or "Q3
2024") totaled $14.4 million, a 4%
increase compared to the three months ended September 30, 2023 ("Third Quarter 2023" or "Q3
2023")
- 2% increase in kilowatt-hour ("kWh") sales when compared to Q3
2023 and a 2% increase in total number of customers when compared
to Q3 2023.
- Capital expenditures of $72.8
million for the nine months ended September 30, 2024.
- In its commitment to reduce carbon emissions and maintain
environmental stewardship, two of the five generating units slated
for a life cycle upgrade have been completed, with work on the
third progressing well. These upgrades will significantly enhance
the engines' fuel efficiency and reduce CO2 emissions. The upgrades
will also allow for the transition to liquefied natural gas in the
future.
- The Company commissioned its first battery energy storage
facility ("BESS"). This system will allow for increased renewable
energy capacity in Grand Cayman.
The 20-megawatt ("MW") BESS is anticipated to lower fuel costs and
improve fuel efficiency by 5% to 6%, leading to a corresponding
reduction in CO2 emissions.
- Ongoing infrastructure hardening demonstrated resilience during
the summer months with two significant weather events affecting the
region with minimal customer disruption.
"The Company continues to focus on capital investment and
infrastructure projects with an emphasis on sustainability. The
investment in resiliency projects proved prudent during recent
weather events this quarter, leading to fewer outages for customers
when Grand Cayman was affected by
the weather. CUC is focused on cost-effective,
environmentally positive investments that are beneficial for our
customers." said Mr. Richard
Hew, President and Chief Executive
Officer.
Capital Expenditures
Capital expenditures for the nine months ending September 30, 2024, were $72.8 million. These expenditures covered
projects such as distribution system extensions and upgrades,
generation replacements, lifecycle upgrades, installation of
battery energy storage systems, and upgrades to the Frank Sound
Substation.
Net Earnings and Sales Revenues
Net earnings for Q3 2024 were $14.4
million, a $0.5 million
increase when compared to net earnings of $13.9 million for Q3 2023. This increase is
primarily attributable to higher income from pipeline operations
and lower finance charges. After adjusting for dividends on the
preference shares of the Company, earnings on Class A Ordinary
Shares for Q3 2024 were $14.3
million, or $0.38 per share,
compared to $13.8 million, or
$0.36 per share for Q3 2023.
On a year-to-date basis, net earnings were $30.7 million, a $1.6
million increase from net earnings of $29.1 million for Q3 2023. The increase was due
to higher other income and lower finance charges. After the
adjustment for dividends on the preference shares of the Company,
earnings on Class A Ordinary Shares for Q3 2024 were $30.4 million, or $0.80 per Class A Ordinary Share, as compared to
$28.8 million, or $0.76 per Class A Ordinary Share, for Q3
2023.
Sales in kWh for Q3 2024 were 208.0 million kWh, a 2% increase
(4.8 million kWh) from Q3 2023 and bringing the year-to-date sales
growth to 4%. This increase was driven by a 2% growth in customer
numbers and an increase in the average kWh consumption of
residential customers. The average temperature for Q3 2024 was 87.0
degrees Fahrenheit, comparable to 87.2 degrees Fahrenheit in Q3
2023.
Fuel factor and renewable energy costs are passed through to
customers without any markup. The 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 for Q3 2024 was $0.23 per kWh, compared to $0.21 per kWh in Q3 2023.
Resiliency
During the summer months, the Cayman
Islands experienced two significant weather events. The
ongoing investments in infrastructure hardening demonstrated
resilience as power outages impacted less than 10% of customers
during the passing of Hurricane Beryl and only 300 customers were
without power during Tropical Storm Helene. All customers were
restored in less than 48 hours.
Award-Winning Green Financing Framework
In April 2024, the Company created
its Green Financing Framework which was assessed by Sustainable
Fitch as "Excellent". In May 2024,
the Company issued US$80 million of
senior unsecured debt. In alignment with the Green Financing
Framework, US$50 million of the net
proceeds, have been dedicated to fund new and ongoing projects to
enhance sustainability, including energy efficiency, climate change
adaptation, and clean transportation in Grand Cayman. In October 2024, the Global Banking & Markets
Latin America Awards recognized the May
2024 debt issuance as the "Caribbean Debt Deal of the Year".
The Company's ability to structure borrowing in this way supports
investment in infrastructure that will reduce costs and improve
environmental performance for our customers and the community of
Grand Cayman.
Community Commitment and Recognition
The Company continued with its commitment to community
development through various partnerships and support programmes in
Q3 2024. Monetary support was provided to multiple different
organizations and charity groups throughout the quarter. The
Company remains committed to the people and community of
Grand Cayman. In Q3 2024, the
Company also supported its Caribbean neighbour, Jamaica, post Hurricane Beryl by sending line
crews to assist with post-restoration efforts.
Additional Information
CUC's Third 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 Third-Quarter 2024
results, the Cayman Islands
economy, liquidity and capital resources, capital expenditures, and
the business risks facing the Company. The release and the Third
Quarter 2024 MD&A can be accessed at www.cuc-cayman.com
(Investor Relations/Press Releases) and 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.
Caribbean Utilities Company, Ltd. ("CUC" or "the Company"),
on occasion, includes forward-looking statements in its media
releases, Canadian securities regulatory authorities filings,
shareholder reports and other communications. 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.