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. 2,
2018 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U)
("CUC" or "the Company") announced today its unaudited results for
the Third Quarter ended September 30,
2018 (all figures in United
States dollars).
Net earnings for the three months ended September 30, 2018 ("Third Quarter 2018")
totalled $9.2 million, an increase of
$1.5 million when compared to net
earnings of $7.7 million for the
three months ended September 30, 2017
("Third Quarter 2017"). Net earnings for the nine months ended
September 30, 2018 totalled
$18.9 million, an increase of
$0.6 million when compared to net
earnings of $18.3 million for the
nine months ended September 30, 2017.
The increase in net earnings for the three and nine months ended
September 30, 2018 is attributable to
higher electricity sales revenues and other income, and lower
general and administration expenses. These items were
partially offset by higher depreciation and transmission and
distribution costs.
After the adjustment for dividends on the preference shares of
the Company, earnings on Class A Ordinary Shares for the Third
Quarter 2018 were $9.1 million, or
$0.27 per Class A Ordinary Share,
compared to earnings on Class A Ordinary Shares of $7.6 million or $0.23 per Class A Ordinary Share for the Third
Quarter 2017.
After the adjustment for dividends on the preference shares of
the Company, earnings on Class A Ordinary Shares for the nine
months ended September 30, 2018 were
$18.6 million, or $0.56 per Class A Ordinary Share, compared to
earnings on Class A Ordinary Shares of $18.0
million or $0.55 per Class A
Ordinary Share for the nine months ended September 30, 2017.
Kilowatt hour ('kWh") sales for the Third Quarter 2018 totalled
170.9 million kWh, a decrease of 2.8 million kWh in comparison to
173.7 million kWh for the Third Quarter 2017.
Sales for the nine months ended September
30, 2018 totalled 471.0 million kWh, a decrease of 0.3
million kWh in comparison to 471.3 million kWh for the nine months
ended September 30, 2017. Sales for
the nine months ended September 30,
2018 were negatively impacted by a 4% decrease in average
residential consumption, in addition to a decrease in the number of
large commercial customers when compared to the same period last
year. However, the number of total customers grew and as at
September 30, 2018 were 29,584, an
increase of 567 customers, or 2%, compared to 29,017 customers as
at September 30, 2017.
The average monthly temperature for the nine months ended
September 30, 2018 was 82.5 degrees
Fahrenheit as compared to an average monthly temperature of 83.0
degrees for the nine months ended September
30, 2017. The average rainfall for the nine months ended
September 30, 2018 was 4.08 inches in
comparison to 3.62 inches for the nine months ended September 30, 2017.
Wetter and cooler weather, for the nine months ended
September 30, 2018 as compared to the
same period in 2017 as well as customer energy efficiency and
increasing fuel prices negatively impacted kilowatt hour sales. The
Company's average cost per Imperial Gallon of fuel for the Third
Quarter 2018 increased 27% to $3.13,
compared to $2.46 for the Third
Quarter 2017.
The Company continued to execute on its Capital Investment Plan
("CIP") to meet customer growth and improve service reliability,
and during the Third Quarter 2018 broke ground for the Seven Mile
Beach substation. This new substation which is being built at the
cost of $16.7 million will be the
Company's first substation to incorporate medium voltage, gas
insulated switchgear ("GIS") technology and is also the first of
its kind in this region. Following this project, the Company
will build a similar substation to serve the Prospect area with
ground breaking anticipated in the fourth quarter of this year.
The Company is awaiting the regulator's formal approval of the
Integrated Resource Plan ("IRP") which was developed by the Company
with public and other stakeholder consultation. The IRP outlines a
plan for rapid but stable increase in grid integrated renewable
energy sources which will deliver economic and environmental
benefits. With world oil prices trending upwards again after an
extended period of relatively low and stable prices, the
attractiveness of diversified energy sources becomes more
compelling.
President and CEO, Mr. Richard
Hew, says, "The Third Quarter 2018 kilowatt hour sales were
lower than expected but the Company was able to manage costs and
deliver an increase in earnings. We continue our investments in
leading technology such as the new Seven Mile Beach substation
which will serve our customers more reliably and efficiently for
many years to come. Rising world fuel prices and the negative
impact on cost to serve our customers remain a concern and the
Company looks forward to a rapid diversification of the energy
sources on the grid during the implementation phase of the
Integrated Resource Plan."
The MD&A section of this report contains a more detailed
discussion of CUC's unaudited 2018 Third Quarter results, the
Cayman Islands economy, liquidity
and capital resources, capital expenditures and the business risks
facing the Company. The release and Third 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 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.
https://mma.prnewswire.com/media/779405/Caribbean_Utilities_Company__Ltd__Caribbean_Utilities_Company__L.pdf
SOURCE Caribbean Utilities Company, Ltd.