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, Feb.
12, 2021 /CNW/ - Caribbean Utilities Company, Ltd. (TSX:
CUP.U) ("CUC" or "the Company") announced today its audited results
for the twelve-month period ended December
31, 2020 (all figures in United
States dollars).
Caribbean Utilities Company, Ltd., like many other companies in
Grand Cayman and across the globe,
was significantly impacted in 2020 by the COVID-19 pandemic.
However, in spite of the challenges which the pandemic presented,
the Company was able to achieve targets set in the areas of
reliability and customer satisfaction, with a focus on ensuring the
health and safety of our employees.
The Company completed the first phase of its Technology Center
and Control Room and made good progress with the Seven Mile Beach
and Prospect substations which are expected to be commissioned in
early 2021. Efforts continued with the tendering process for
the 20 megawatt utility-scale battery project which was approved
by the Utility Regulation and Competition Office ("OfReg") in
2019. Battery storage provides the grid stability necessary
to integrate higher levels of intermittent renewables.
For the year ended December 31,
2020 ("Fiscal 2020"), the Company's Environmental Management
System successfully passed the surveillance audit of the system,
with no minor or major non-conformances identified. Through
donations, the suspension of disconnections and extended payment
plans, the Company was also able to support customers and other
persons who struggled during the COVID-19 pandemic.
Operating income for Fiscal 2020 totalled $28.9 million, a $0.6
million decrease from operating income of $29.5 million for the year ended December 31, 2019 ("Fiscal 2019"). This
decrease is primarily attributable to a 3.5% decrease in kWh sales
and higher depreciation costs in Fiscal 2020. These items were
partially offset by 0.9% and 6.6% base rate increases effective
June 1, 2019 and June 1, 2020, respectively.
Net earnings for Fiscal 2020 were $26.1
million, a $3.0 million
decrease from net earnings of $29.1
million for Fiscal 2019. This decrease is primarily
attributable to lower operating income, higher finance charges and
lower other income.
After the adjustment for dividends on the preference shares of
the Company, earnings on Class A Ordinary Shares for Fiscal 2020
were $25.1 million, or $0.74 per Class A Ordinary Share, as compared to
$28.1 million, or $0.84 per Class A Ordinary Share for Fiscal
2019. The Company calculates earnings per share on the
weighted average number of Class A Ordinary Shares outstanding. The
weighted average number of Class A Ordinary Shares outstanding were
34,126,137 and 33,322,444 for Fiscal 2020 and Fiscal 2019,
respectively. The Company successfully completed a Rights
Offering on October 29, 2020.
The Rights Offering raised gross proceeds of $47.8 million through the issue of 3,359,362
Class A Ordinary Shares.
Capital expenditures net of contribution in aid of construction
for Fiscal 2020 were $53.4 million, a
$7.2 million or 12 % decrease from
$60.6 million in capital expenditures
for Fiscal 2019.
President and CEO, Mr. Richard
Hew says, "The Cayman
Islands effectively managed to avoid the health crisis that
the COVID-19 pandemic brought to other jurisdictions in 2020, and,
apart from the tourism industry, the economy proved very resilient.
The impact to CUC was mainly through the reduction in electricity
sales to large office buildings and hotels as well as the thousands
of tourism workers who departed Grand
Cayman. Company operations were also impacted by the
curtailment of travel by overseas specialists required to conduct
critical maintenance and repairs. Despite these setbacks, the
Company improved its customer satisfaction and reliability results
over 2019, completed a Rights Offering to pay down debt, pared
costs and capital expenditures to maintain financial stability and
delivered reasonable earnings in the circumstances. Importantly,
the Company also submitted a proposal for a utility scale solar
plus battery storage project to the regulator for consideration. In
addition, the Company retained its Investor in People Gold
accreditation, a testament to the fact that it is committed to
developing its people for future success. I sincerely thank our
employees for all that they did in 2020 as the Company remained
committed to delivering safe, reliable, least-cost and sustainable
electricity to our customers."
The Company continues to facilitate the connection of renewable
energy sources to the grid through its Consumer Owned Renewable
Energy and Distributed Energy Resources programmes. At December 31, 2020, there were 587 customers
connected with 7,735.66 kilowatts of renewable
capacity.
Sales for Fiscal 2020 were 644.3 million kWh, a decrease of 23.4
million kWh or 3.5% when compared to 667.7 million kWh for Fiscal
2019. Sales for Fiscal 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. The decrease in
the Large Commercial customers' kWh consumption was partially
offset by the increase in kWh consumption of Residential Customers
and a 2% growth in overall customer numbers in Fiscal 2020 compared
to Fiscal 2019.
Total customers as at December 31,
2020 were 31,293, an increase of 756 compared to 30,537
customers as at December 31,
2019.
CUC's 2020 results and related Management's Discussion and
Analysis ("MD&A") for the twelve-month period ended
December 31, 2020 are attached to
this release and incorporated by reference. The release and 2020
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 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.