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, May 1,
2019 /CNW/ - Caribbean Utilities Company, Ltd. (TSX:
CUP.U) ("CUC" or "the Company") announced today its consolidated
unaudited results for the three months ended March 31, 2019 (all figures in United States dollars).
For the three months ended March 31,
2019 ("Q1 2019"), the Company recorded net earnings of
$4.5 million, an increase of
$1.8 million from $2.7 million for the three months ended
March 31, 2018 ("Q1 2018"). The
increase in net earnings is due primarily to a 4% increase in
kilowatt hour ("kWh") sales, lower transmission and distribution
costs and lower finance charges. The comparative earnings
were also impacted by the $0.6
million demand rate implementation revenue shortfall in Q1
2018.
After the adjustment for dividends on the preference shares of
the Company, earnings on Class A Ordinary Shares for Q1 2019 were
$4.4 million or $0.13 per Class A Ordinary Share, compared to
earnings on Class A Ordinary Shares of $2.6
million, or $0.08 per Class A
Ordinary Share for Q1 2018.
Capital expenditures for Q1 2019 totaled $11.9 million, a $2
million increase when compared to $9.9 million for Q1 2018. Capital
investments for Q1 2019 included the new Seven Mile Beach
substation. This project will increase safety, system
reliability and resiliency and will accommodate load growth within
the popular Seven Mile Beach tourist area for decades to
come.
The Cayman Islands Economics and Statistics Office ("ESO")
issued the 2018 Third Quarter Economic Report in March 2019.
The report indicated that the Gross Domestic Product ("GDP")
expanded by an estimated 3.6% in the first nine months of
2018. This economic growth supported a 2% increase in the
number of customers to 29,945 total customers as at March 31, 2019. The average kWh usage by
residential and commercial customers also increased during the
period.
A major focus for the Company during Q1 2019 has been on
reliability of service to customers. The Average Service
Availability Index (ASAI), the percentage of time power was
available to customers, was 99.98% which was an improvement in
average per customer reliability of 33% when compared to the same
period last year. This can otherwise be expressed as average total
interruption time per customer of less than thirty minutes for the
period. This is in line with the Company's goal under its
Reliability 2.0 initiative to attain 2 hours or less of total
annual outage time per customer.
The Company also recorded growth of renewable energy on the CUC
grid with 4.3 million kWh in Q1 2019 compared to 3.5 million kWh in
Q1 2018. This growth is attributable to the roof top solar
installed under the Company's Customer Owned Renewable Energy
("CORE") programme as well as an increase in production from the 5
MW Entropy Solar farm. Renewable energy represented 2.8% of the
total energy on CUC's grid. The Company's aim is to have 25% of
renewable energy on the grid by 2025.
In March 2019, the Company was
recognized as a Top Employer in the Cayman Islands. Companies recognized as top
employers are known to prioritize employees' career growth,
corporate and social responsibility, to promote ethical values and,
are transparent about the standards to which they hold themselves.
Management is proud of this achievement and they continue to seek
ways to improve the Company's talent pool and work environment to
remain a Company where employees are proud to come to work each
day.
President and CEO, Mr. Richard
Hew, says, "The Company is off to a good start in 2019 with
earnings growth, improvement in reliability of service to
customers, progress on significant capital projects and an increase
in the amount of renewable energy on the grid when compared to the
same period last year. The acceptance of CUC's Integrated Resource
Plan by the Cayman Islands Utility Regulation and Competition
Office ("OfReg") during the period also bodes well for further
integration of renewable energy. I am also very pleased that during
First Quarter 2019 there were no lost-time injuries recorded. The
safety of our employees, and that of the public, remains top
priority and the Company continues to improve its work processes
and increase employee training, safety management and leadership,
to drive lost-time incidents to zero."
CUC's First Quarter results and related Management's Discussion
and Analysis ("MD&A") for the period ended March 31 2019
are attached to this release and 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 2019 First Quarter results, the Cayman Islands economy, liquidity and capital
resources, capital expenditures and the business risks facing the
Company. The release and First 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", "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/880943/Caribbean_Utilities_Company__Ltd_Q1_2019_MD_A_and_Interim_Financial_Statements.pdf
SOURCE Caribbean Utilities Company, Ltd.