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, July
29, 2021 /CNW/ - Caribbean Utilities Company, Ltd. (TSX:
CUP.U) ("CUC" or "the Company") announced today its unaudited
results for the three and six months ended June 30, 2021 (all dollar amounts are stated in
United States dollars).
The results for the Company for the three months ending
June 30, 2021 ("Second Quarter 2021"
or "Q2 2021") reflect the reopening of businesses and the start of
the economic recovery following the COVID -19 pandemic as this
period recorded an increase in sales and earnings as well as an
increase in the customer base.
Operating income for Q2 2021 totalled $8.9 million, an increase of $3.3 million when compared to operating income of
$5.6 million for the three months
ending June 30, 2020 ("Second Quarter
2020" or "Q2 2020"). The increase is primarily attributable
to higher electricity sales revenues and lower depreciation,
maintenance, and consumer services expenses.
Net earnings for Q2 2021 totalled $8.6
million, an increase of $4.1
million from $4.5 million in
Q2 2020. In addition to the items impacting operating income, net
earnings were also positively impacted by lower finance charges
driven by lower long-term debt interest charges and higher
Allowance for Funds Used During Construction ("AFUDC").
After the adjustment for dividends on the preference shares of
the Company, earnings on Class A Ordinary Shares for Q2 2021 were
$8.4 million, or $0.23 per Class A Ordinary Share, compared to
earnings on Class A Ordinary Shares of $4.4
million, or $0.13 per Class A
Ordinary Share for Q2 2020.
President and CEO, Mr. Richard
Hew, states that, "Grand
Cayman's economy continues to improve as reflected in the
Second Quarter year over year increase in kilowatt hour ("kWh")
sales and a peak demand of 111.2 megawatts ("MW"), which is
approaching the record peak of 113.5 MW set in August 2019. Further improvements in the economy
and the recovery of electricity sales beyond 2019 levels depends on
the successful phased reopening of the tourism industry in
September through November 2021, as
announced by the Cayman Islands Government and is conditional on
the Islands reaching an 80% full vaccination rate. I am also
pleased to report that CUC's health and safety, environmental and
reliability performances were all on, or ahead of targets set for
the half year mark."
Sales for the three months ended June 30,
2021 totalled 170.8 million kWh, an increase of 5.3 million
kWh in comparison to 165.5 million kWh for the three months ended
June 30, 2020. The increase in
sales for Q2 2021 is primarily due to economic recovery following
the impact of the Covid-19 pandemic. During Q2 2020, most
businesses were closed due to Government
restrictions.
Sales for the six months ended June 30,
2021 totalled 314.6 million kWh, a decrease of 3.3 million
kWh in comparison to 317.9 million kWh for the six months ended
June 30, 2020. The decrease in
sales for the six months ended June 30,
2021 is primarily due to a decrease in the average
consumption of large and general commercial customers due to the
Covid-19 pandemic which began to impact the economy in March
2020.
The Company continues to be engaged in discussions with the
Cayman Islands Utility Regulation and Competition Office ("OfReg")
on key areas focused around renewable energy and a proposal for a
20-megawatt battery storage project and how best this project can
be implemented so that customers can reap the benefits. The Company
remains committed to providing an ongoing safe and reliable
electricity service to all consumers while transitioning to cleaner
and more sustainable resources.
Through good governance, inclusion and diversity and the
creation of more strict environmental policies, the Company is
taking steps to create a more sustainable platform from which to
serve our stakeholders in the future.
The number of customers increased at the end of the Second
Quarter 2021. The total number was 31,719, an increase of 1,015
customers, or 3%, compared to 30,704 customers as at June 30, 2020.
During this period of review, customers are being reminded to
conserve the amount of energy they consume.
Mr. Hew stated that, "It is summer time and with children out of
school and at home for long periods of time during the day,
customers are using more electricity for air conditioning. Global
fuel costs are also trending upwards, and as such we remind our
customers to monitor and manage their electricity consumption to
reduce costs using the smart meter consumption data and energy
efficiency tips available on CUC's website."
CUC's Second Quarter 2021 results and related Management's
Discussion and Analysis ("MD&A") for the period ended
June 30, 2021 are attached to this
release and incorporated by reference.
The MD&A section of this report contains a discussion of
CUC's unaudited 2021 Second Quarter results, the Cayman Islands economy, liquidity and capital
resources, capital expenditures and the business risks facing the
Company. The release and Second Quarter 2021 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", "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.