CUC Announces Second Quarter Results for the Period Ended June 30th, 2012
Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange.
GRAND CAYMAN, Cayman Islands, July 31, 2012 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its unaudited results for the Second Quarter ended June 30, 2012 (all figures in United States dollars).
Net earnings for the three months ended June 30, 2012 ("Second Quarter 2012") totalled $5.1 million, a decrease of $0.8 million, or 14%, when compared to $5.9 million for the three months ended June 30, 2011 ("Second Quarter 2011"). A 3% decline in kilowatt-hour (" kWh") sales and higher depreciation costs and finance charges were partially offset by decreased general and administration, consumer service and maintenance costs for the Second Quarter 2012 when compared to the Second Quarter 2011.
Sales for the Second Quarter 2012 totalled 139.9 million kWh, a decrease of 5.0 million kWh, or 3%, in comparison to 144.9 million kWh for the Second Quarter 2011. Sales were negatively impacted by rainy weather conditions that reduced customer air-conditioning load. The average monthly rainfall for the Second Quarter 2012 was 9.3 inches as compared to an average rainfall of 4.2 inches for the same period last year and May 2012 saw a record breaking 17.7 inches of rainfall, the highest level on record in one month in over 9 years and the highest level on record for the month of May in 20 years.
After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for the Second Quarter 2012 were $5.0 million, or $0.18 per Class A Ordinary Share, a decrease of $0.8 million from the $5.8 million, or $0.20 per Class A Ordinary Share for the Second Quarter 2011.
President and CEO, Mr. Richard Hew, says, "With a continuing weak economy, relatively high fuel prices and wetter than normal months, electricity sales and earnings for the quarter under review were negatively impacted. We continue to focus on controlling costs while meeting our obligations to provide a safe and reliable electricity service to our customers. A stronger economy with real economic growth is required to provide any material improvement in financial performance."
The Company continues with the installation of its Advanced Metering Infrastructure (AMI) system. Over five thousand new AMI meters have been installed which allows CUC to measure, collect and analyze energy usage, and communicate with the meters, either on request or on a schedule from its central office. Customers will be able to use the information provided by the AMI system to become more energy efficient.
"We are pleased to offer this new technology to our customers. We anticipate that there will be significant benefits to CUC in terms of efficiency in operation as well as the enhanced service to electricity consumers." Mr. Hew added.
CUC's Second Quarter 2012 results and related Management's Discussion and Analysis ("MD&A") for the period ended June 30, 2012 are 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 Second Quarter 2012 results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and Second 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 2029 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.
SOURCE Caribbean Utilities Company, Ltd.