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, Oct.
30, 2020 /CNW/ - Caribbean Utilities Company, Ltd. (TSX:
CUP.U) ("CUC" or "the Company") announced today its unaudited
results for the three and nine months ended September 30, 2020 (all dollar amounts are stated
in United States dollars).
Results for the Company for the three months ending September 30, 2020 ("Third Quarter 2020" or "Q3
2020") reflect the impact that the COVID-19 pandemic has had on our
business and Grand Cayman's
economy.
Net earnings for Q3 2020 totalled $10.4
million, comparable to $10.4
million for the three months ending September 30, 2019 ("Third Quarter 2019" or "Q3
2019").
Net earnings for the nine months ended September 30, 2020 totalled $18.7 million, a decrease of $4.2 million when compared to net earnings of
$22.9 million for the nine months
ended September 30, 2019. The
decrease is primarily attributable to higher depreciation and
finance charges.
Sales for Q3 2020 totalled 175.1 million kilowatt hours ("kWh"),
a decrease of 9.3 million kWh, or 5%, in comparison to 184.4
million kWh for Q3 2019. Sales for the nine months ended
September 30, 2020 totalled 492.9
million kWh, a decrease of 11.0 million kWh, or 2%, in comparison
to 503.9 million kWh for the nine months ended September 30, 2019.
Sales for the three and nine months ended September 30, 2020 were negatively impacted by a
decrease in the kWh consumption of Large Commercial customers
driven by the impact of the COVID-19 pandemic on the Cayman Islands' economy, partially offset by
an increase in Residential customer's kWh consumption in 2020
compared to 2019.
During the nine months ended September
30, 2020, the Company experienced a 24% decline in average
fuel costs when compared to the same period in 2019. The savings
have resulted in the average rate per kWh decreasing for the nine
months ended September 30, 2020 to
$0.2754 per kWh in comparison to
$0.3024 for the nine months ended
September 30, 2019. As a
result, customers have paid less per kWh for electricity consumed
during the nine months ended September 30,
2020 in comparison to the nine months ended September 30, 2019.
President and CEO, Mr. Richard
Hew, says, "Although the duration and final impact of the
COVID-19 pandemic on the Cayman
Islands' economy and CUC remain uncertain, Q3 2020
represented a relatively stable quarter for the Company in the
circumstances. During the quarter, the Company continued to deliver
on its objectives of health and safety of its employees and the
public, reliable electricity service, financial stability and being
a good corporate citizen. Health and safety and reliability
performance indicators were as planned and the Company was pleased
to reach agreement with its regulator to defer the impact of the
rate adjustments on customer bills until 2021. During the quarter
the company also submitted a utility scale solar project to the
regulator which is permitted under its license and is in keeping
with Company and the Cayman
Islands renewable energy goals."
CUC's Third Quarter results and related Management's Discussion
and Analysis ("MD&A") for the period ended September 30, 2020 are attached to this
release.
The MD&A section of this report contains a discussion of
CUC's unaudited 2020 Third Quarter results, the Cayman Islands economy, liquidity and capital
resources, capital expenditures and the business risks facing the
Company. The release and Third 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 materialise, 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/1324516/Caribbean_Utilities_Company__Ltd__Caribbean_Utilities_Company__L.pdf
SOURCE Caribbean Utilities Company, Ltd.