Caribbean Utilities Company, Ltd. is listed for trading in
United States dollars on the
Toronto Stock Exchange.
GRAND CAYMAN, Cayman Islands, May 2,
2012 /CNW/ - Caribbean Utilities Company, Ltd. (TSX:CUP.U)
("CUC" or "the Company") announced today its unaudited results for
the First Quarter ended March 31st,
2012 (all figures in United
States dollars).
Net earnings for the three months ended
March 31, 2012 ("First Quarter 2012")
were $1.9 million, a decrease of
$1.2 million, or 39%, when compared
to $3.1 million for the three months
ended March 31, 2011 ("First Quarter
2011"). A 1% increase in kWh sales and lower maintenance costs were
offset by an increase in general and administration, financing and
depreciation costs for the First Quarter 2012 when compared to the
First Quarter 2011.
President and CEO, Mr. Richard Hew, says, "The first quarter is
normally our weakest quarter of the year in terms of sales and
earnings due to cooler weather. Earnings for the First
Quarter 2012 were further impacted by one-time restructuring costs
but overall were in line with our expectations."
Electricity sales revenues increased
$0.1 million, or 1%, to $15.9 million for the First Quarter 2012, from
$15.8 million for the First Quarter
2011. Electricity sales revenues increased as a result of a
1% kWh sales increase and 2% customer number growth experienced
quarter-over-quarter.
During the first three months of 2012, the
Company completed the review of proposals received in response to
its request for Expression of Interest and Preliminary Proposal for
the financing, construction, ownership and operation of up to 13 MW
of renewable energy generation facilities. Discussions are
ongoing with the prospective alternative energy providers.
Also, during the period under review, DataLink,
Ltd ("DataLink"), the wholly owned subsidiary of CUC, received its
licence from the Information and Communications Technology
Authority ("ICTA") which permits DataLink to provide fibre optic
infrastructure and other information and communication technology
(ICT) services to the ICT industry.
Mr. Hew added, "We are excited about the future
potential of our subsidiary, DataLink, Ltd. now that we have
received its licence to operate as an information and
communications technology service provider."
CUC's base rates (excluding fuel costs) have not
changed since 2009 and remain lower than they were in 2002.
In March 2012 the Company submitted
the calculation of a base rate increase of 0.7% to the Electricity
Regulatory Authority for verification which would be effective for
bills rendered from June 2012, as
prescribed by the Rate Cap and Adjustment Mechanism of CUC's
Transmission & Distribution Licence.
CUC's First Quarter results and related
Management's Discussion and Analysis ("MD&A") for the period
ended March 31st 2012 are
attached to this release and incorporated by reference and can be
accessed by clicking the link below at the end of this release.
The MD&A section of this report contains a
discussion of CUC's unaudited 2012 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
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
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.
PDF available at:
http://stream1.newswire.ca/media/2012/05/02/20120502_C3663_DOC_EN_13086.pdf