CUC Announces Third Quarter Results for the Period Ended September 30, 2010
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 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC" or the "Company") announced today its unaudited results for the third quarter ended September 30, 2010 (all figures in United States dollars).
Electricity sales for the third quarter of 2010 totaled 152.7 million kilowatt hours ("kWh") in comparison to 153.3 million kWh for the three months ended September 30, 2009; a decrease of 0.6 million kWh. Electricity sales during the quarter were adversely affected by cooler and wetter weather compared to the same period in 2009. For the nine months ended September 30, 2010, electricity sales increased by 2% to 425.9 kWh, compared to 415.6 kWh for the nine months ended September 30, 2009. The increase in nine month sales was due to higher average temperatures during the first six months of the period.
The peak load during the third quarter of 99.4 megawatts ("MW") did not exceed the record of 102.1 MW set during the second quarter of 2010. The Company added 507 customers during the nine month period ended September 30, 2010 including 151 customers during the third quarter of 2010 for a period end total of 25,968, up 2% from December 30, 2009.
President and CEO of CUC Mr. Richard Hew said, "As expected we are seeing very weak underlying growth in sales through the first three quarters of 2010 and this weakness is expected to continue through 2011. The Company continues to focus on trimming capital and other expenditures to preserve cash while meeting its obligations to serve reliably."
Electricity sales revenue for the third quarter of 2010 was down slightly at $19.1 million from $19.2 million for the same period in 2009. Electricity sales were up $1.8 million or 4% for the nine months ended September 30, 2010 to $53.4 million compared to $51.6 million for the nine months ended September 30, 2009 mainly due to weather influences noted above and the resulting 2% increase in sales.
Net earnings for the third quarter of 2010 were $6.6 million, down marginally from net earnings for the three months ended September 30, 2009. Net earnings for the nine months ended September 30, 2010 were up $1.1 million, or 8%, at $15.2 million compared to net earnings of $14.1 million for the nine months ended September 30, 2009 due mainly to higher temperatures during the first half of 2010. Higher depreciation and financing costs in 2010 offset lower maintenance, general and administration and distribution expenses.
After the adjustment for dividends on the Class B Preference Shares of the Company, earnings on Class A Ordinary Shares for the third quarter of 2010 were $6.5 million, or $0.23 per Class A Ordinary Share, as compared to $6.1 million, or $0.21 per Class A Ordinary Share for the three months ended September 30, 2009. After the adjustment for dividends on Class B Preference Shares, earnings on Class A Ordinary Shares for the nine months ended September 30, 2010 were up $1.6 million or 12% to $14.9 million, or $0.52 per Class A Ordinary Share, as compared to $13.3 million, or $0.47 per Class A Ordinary Share for the nine months ended September 30, 2009. The preference share participating dividend was recorded in the third quarter of 2009. This timing was in keeping with the payout date for previous financial years prior to the year-end change. The timing of this accrual has now been adjusted to occur once again in the fourth quarter of the financial year effective 2010.
CUC's Third Quarter Report for the period ended September 30, 2010 attached to this release is incorporated by reference and can be accessed by clicking the link below:
http://files.newswire.ca/520/CUCMDA.pdf
The Management's Discussion and Analysis section of this report contains a detailed discussion of CUC's unaudited third quarter financial results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and Third Quarter Report 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 2029 and an exclusive Electricity Transmission and Distribution Licence expiring in 2028. Further information is available at www.cuc-cayman.com.
CUC includes forward-looking statements in this material. 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 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.
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For further information:
Contact: | Letitia Lawrence |
Vice President Finance and Chief Financial Officer | |
Phone: | (345) 914-1124 |
E-Mail: | [email protected] |
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