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, Feb.
15, 2019 /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, 2018 (all figures in United
States dollars).
Operating Income for the year ended December 31, 2018 ("Fiscal 2018") totalled
$28.4 million, a $1.0 million increase from Operating Income of
$27.4 million for the year ended
December 31, 2017 ("Fiscal
2017"). This increase is attributable to higher electricity
sales revenues, primarily driven by a 1% increase in kilowatt per
hour ("kWh") sales, and 1.6% and 1.8% base rate increases effective
June 1, 2017 and June 1, 2018 respectively. These items were
partially offset by higher depreciation and transmission and
distribution expenses in 2018.
Net earnings for Fiscal 2018 were $26.8
million, a $3.0 million
increase from net earnings of $23.8
million for Fiscal 2017. This increase is primarily
attributable to higher operating income and lower finance
charges.
After the adjustment for dividends on the preference shares of
the Company, earnings on Class A Ordinary Shares for Fiscal 2018
were $25.8 million, or $0.78 per Class A Ordinary Share as compared to
$22.8 million, or $0.70 per Class A Ordinary Share for Fiscal
2017.
Capital expenditures for the year were $58.0 million with progress made on the
construction of two new distribution substations, a new Supervisory
Control and Data Acquisition ("SCADA") system and an upgrade to the
central control room at North Sound Plant.
President and CEO, Mr. Richard
Hew, says, "We are pleased to report earnings growth for the
year. Commercial and residential construction activity in
Grand Cayman remained very active
in 2018; however, sales growth was tempered by ongoing customer
focus on energy efficiency and cooler weather as compared to 2017.
The Company also experienced one of its most active years of
construction as it continued to execute its Capital Investment Plan
to put in place the modern infrastructure required to serve
Grand Cayman as a leading
destination today and into the future. With the growing importance
on environmental sustainability, we progressed in this area with a
significant increase in the amount of renewable energy feeding our
grid and the acceptance of our Integrated Resource Plan by the
Office of Utility Regulations and Competition as a roadmap for the
transition to clean energy."
Renewable energy on the CUC grid grew by 47% for the year. At
December 31, 2018, there were 343
customers connected with 4,917.14 kilowatts of renewable
capacity for the Customer Owned Renewable Energy ("CORE")
programme along with the BMR Energy (formerly Entropy) 5 megawatts
("MW") solar facility. The Company's aim is to have 25% of
renewable energy on the grid by 2025 and to meet the objectives and
targets of the National Energy Policy over the longer term. The
Company has also submitted an additional $77
million in proposed grid enhancement projects, including
battery storage, for regulatory review.
CUC's 2018 Results and related Management's Discussion and
Analysis ("MD&A") for the twelve-month period ended
December 31, 2018 are attached to
this release and incorporated by reference. The release and 2018
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", "plans",
"believes", "estimates", "intends", "targets", "projects",
"forecasts", "schedules", 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/822891/Caribbean_Utilities_Company__Ltd__Caribbean_Utilities_Company__L.pdf
SOURCE Caribbean Utilities Company, Ltd.