CUC Announces Second Quarter Results for the Period Ended June 30th, 2011
05 August 2011 - 9:25AM
PR Newswire (Canada)
GRAND CAYMAN, Cayman Islands, Aug. 4, 2011 /CNW/ -- 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, Aug. 4, 2011 /CNW/ -
Caribbean Utilities Company, Ltd. ("CUC" or the "Company")
announced today its unaudited results for the second quarter ended
June 30, 2011 (all figures in United States dollars). Net earnings
for the three months ended June 30, 2011 ("Second Quarter 2011")
were $5.9 million, a decrease of $0.3 million or 5% when compared
to $6.2 million for the three months ended June 30, 2010 ("Second
Quarter 2010"). A 3% decline in kilowatt hour (kWh) sales and
higher general and administration, consumer service and
transmission and distribution costs were partially offset by an
increase in other income and lower finance charges for the Second
Quarter 2011 when compared to the Second Quarter 2010. Electricity
sales for the Second Quarter 2011 totalled 144.9 million kWh, a
decrease of 4.9 million kWh, or 3%, in comparison to 149.8 million
kWh for the Second Quarter 2010. Sales for the Second Quarter 2011
were negatively impacted by a reduction in commercial customer
accounts during the period, low residential rental property
occupancy, cooler weather conditions and customer conservation
efforts that affected customer air conditioning load.
The average temperature for the Second Quarter 2011 was 83.3
degrees Fahrenheit as compared to an average temperature of 84.3
degrees for the same period last year. CUC's President and CEO, Mr.
Richard Hew said, "The economic downturn in the Cayman Islands has
negatively impacted energy usage and electricity sales. The impact
of recent high diesel fuel prices on electricity rates has
exacerbated the situation and remains of concern for CUC. We
continue to actively seek viable alternative energy sources to
reduce the Island's dependency on diesel fuel for electricity
generation. In the short term we are advising customers to conserve
energy and are providing assistance through energy conservation
education." CUC also received approval from the Electricity
Regulatory Authority (ERA) in March 2011 to hedge against further
increases in the price of fuel and the Company has initiated a
hedging program for 40% of its annual fuel requirements. Total
customers as at June 30, 2011 were 26,387, an increase of 570
customers, or 2%, compared to 25,817 customers as at June 30, 2010.
The Company had a net increase of 126 customers for the Second
Quarter 2011, comprising 131 residential connections and five
commercial disconnections. However, despite increases in overall
customer numbers, average monthly kWh customer consumption for the
residential and commercial categories combined has declined from
1,744 kWh for the first half of 2010 to 1,687 kWh for the first
half of 2011. CUC's Second Quarter Report for the period ended June
30, 2011 is attached to this release and incorporated by reference
and can be accessed by clicking the link below:
http://files.newswire.ca/520/CUC_Q2_2011_MDAFSNotes_Final.pdf The
Management's Discussion and Analysis section of this report
contains a detailed discussion of CUC's unaudited second quarter
financial results, the Cayman Islands economy, liquidity and
capital resources, capital expenditures and the business risks
facing the Company. The release and Second 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 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. To view this news release in HTML formatting, please use
the following URL:
http://www.newswire.ca/en/releases/archive/August2011/04/c9571.html
table border="0" valign="top" tr td Contact:br/ br/
Phone: /td td Letitia Lawrencebr/ Vice President
Finance and Chief Financial Officerbr/ (345) 914-1124 /td /tr tr td
E-Mail:
/td td a href="mailto:llawrence@cuc.ky"llawrence@cuc.ky/a /td /tr
/table p /p
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