Caribbean Utilities Company, Ltd. is listed for trading in
United States dollars on the
Toronto Stock Exchange
GRAND CAYMAN, Cayman Islands, Feb.
16, 2017 /CNW/ - Caribbean Utilities Company, Ltd. (TSX:
CUP.U) ("CUC" or "the Company") announced today its audited results
for the twelve-month period ended December
31, 2016 (all figures in United
States dollars).
Net earnings for the year ended December
31, 2016 ("Fiscal 2016") were $25.2
million, a $2.4 million
increase from net earnings of $22.8
million for the year ended December
31, 2015 ("Fiscal 2015"). This increase is attributable to a
4% increase in kilowatt-hour ("kWh") sales, 0.9% and 0.1% base rate
increases effective June 1, 2015 and
June 1, 2016 respectively, lower
consumer services expenses and lower finance charges. These items
were partially offset by higher depreciation costs.
After the adjustment for dividends on the preference shares of
the Company, earnings on Class A Ordinary Shares for Fiscal 2016
were $24.3 million, or $0.75 per Class A Ordinary Share as compared to
$21.9 million, or $0.71 per Class A Ordinary Share for Fiscal
2015. The Company successfully completed a Rights Offering
(the "Offering") on May 4, 2015. The
Offering raised gross proceeds of $31,563,639 through the issue of 2,930,700 Class
A Ordinary Shares. The weighted average number of Class A
Ordinary Shares used to calculate the earnings per Class A Ordinary
Share was impacted by the shares issued through the Offering. The
full impact of the Rights Offering on the weighted average number
of Class A Ordinary Shares would have been experienced during
Fiscal 2016, whereas it would have only impacted the latter part of
Fiscal 2015.
Electricity sales for Fiscal 2016 were 606.7 million kWh, an
increase of 24.7 million kWh or 4% when compared to 582.0 million
for Fiscal 2015. Sales were positively impacted by a number of
large commercial developments and a 2% growth in overall customer
numbers. During 2016 the average monthly kWh consumption rose
6% for residential customers and 2% for commercial customers when
compared to 2015.
Electricity sales revenues increased $3.5
million for Fiscal 2016 to $80.2
million when compared to electricity sales revenues of
$76.7 million for Fiscal 2015.
This increase is primarily attributable to a 4% increase in kWh
sales.
President and CEO, Mr. Richard
Hew, says, "2016 was a very successful year for CUC.
Through the efforts of all of our employees, the Company continued
to adequately control its expenses while providing a safe, reliable
and efficient service to our customers across Grand Cayman.
We are very proud to have reached the milestone of 2 years without
a lost time injury ("LTI") on January 27,
2017. This was a notable achievement for the Company's
safety record."
The safety of all CUC employees as well as of contractors and
members of the public remained a high priority during 2016.
Numerous training programmes focused specifically on safety were
provided to employees throughout the year.
Electricity consumers continued to enjoy the benefit of lower
fuel costs in 2016 driven by a reduction in world market fuel
prices as well as the Cayman Islands Government's 30 cent per Imperial Gallon ("IG") reduction in
fuel duty effective January 1, 2016.
The average Fuel Cost Charge rate per kWh for the twelve months
ended December 31, 2016 was
$0.13 per kWh compared to the Fuel
Cost Charge rate of $0.19 per kWh for
the twelve months ended December 31,
2015.
Mr. Hew continued, "In June 2016
the Company also completed its largest capital project to date with
the commissioning of the new 40 MW power plant, on time and under
budget. This plant, one of the most fuel efficient in the
region, drove the Company to achieve its highest ever annual net
fuel efficiency of 19.0 kWh per IG in 2016. The combination
of lower fuel costs and improved fuel efficiency has resulted in
savings of $25.6 million to consumers
for the twelve months ended December 31,
2016. At the same time we remain focused on adopting new
technologies that are sustainable and environmentally
friendly."
The Advanced Metering Infrastructure ("AMI") project was
completed during the fourth quarter of 2016. The Smart Meters
provide real-time consumption information and also bring
efficiencies to meter reading as well as other services. The AMI
project will offer a pay-as-you go payment option which will help
customers to monitor and control their electricity consumption.
This new option will be launched later in 2017.
During 2016, CUC launched the Integrated Resource Plan ("IRP")
study. The study analyses all energy resources that are viable and
considers their cost, reliability, environmental impact and other
aspects and provides a recommended portfolio of energy resources
for the market. The Company's goal is to ensure that all energy
options are explored before decisions are made on what the grid can
accommodate in a safe, reliable and efficient manner. The IRP
will give shape to the energy generation and transmission plans for
Grand Cayman over the next 30
years.
CUC's 2016 Results and related Management's Discussion and
Analysis ("MD&A") for the twelve-month period ended
December 31, 2016 are attached to
this release and incorporated by reference. They 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 audited 2016 results, the Cayman
Islands economy, liquidity and capital resources, capital
expenditures and the business risks facing the Company. The release
and 2016 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 2039 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.
PDF available at:
http://files.newswire.ca/520/CUP-AnnualReport.pdf
SOURCE Caribbean Utilities Company, Ltd.