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CUC announces 2007 year-end audited financial results
CUC announces 2007 year-end audited financial results.
About this update from Caribbean Utilities Co. Ltd. Class A
[{"type":"text","content":"\n\n\n\nCLASS A ORDINARY SHARES LISTED FOR TRADING IN UNITED STATES FUNDS ON THE\n\n\nTORONTO STOCK EXCHANGE/TRADING SYMBOL: CUP.U\n\n\nGRAND CAYMAN, Cayman Islands, July 17 /CNW/ - Caribbean Utilities\nCompany, Ltd. ("CUC" or "the Company") announced today its audited financial\nresults for the year ended April 30, 2007 (all figures reported in United\nStates dollars unless otherwise noted).\n\n\nFinal Return\n\n\nCUC submitted to the Cayman Islands Government ("Government") today its\nFinal Return containing its year-end 2007 audited results confirming that the\nCompany is entitled to a 4.5% rate increase effective August 1, 2007 under its\ncurrent Licence. This shortfall on Return on Capital Employed is primarily a\nresult of the disposal of the 2.4 megaWatt (MW) steam system as part of a\npower plant restructuring, increased operating expenses and infrastructure\ninvestment. CUC will not seek to implement this rate increase, as it agreed\nwith Government that it would freeze its base rates during the period of the\nHurricane Ivan Cost Recovery Surcharge.\n\n\nCUC has not increased its base rates since 2002 and, in the five-year\nperiod since, will have foregone $16.9 million in total revenue, including\n$3.5 million representing the August 2007 entitlement.\n\n\nFinancial Results\n\n\nNet earnings for the year ended April 30, 2007 were $18.5 million, a 19%,\nor $4.4 million, decline from net earnings of $22.9 million last year. This\ndecrease is primarily due to the $3.7 million impact from the power plant\nrestructuring in the third quarter and a series of unexpected generator\nfailures partially offset by 12% sales growth. Fiscal 2007 earnings on Class A\nOrdinary Shares after preference dividends were $17.7 million, or $0.70 per\nshare, compared to $21.9 million, or $0.87 per share, for fiscal 2006.\n\n\nOperating revenues for the year totaled $158.9 million, a 17% increase\nover 2006 revenues of $135.7 million. Electricity sales increased 12% from\n$85.7 million in 2006 to $96.2 million in 2007. Net generation grew to\n546.07 million kiloWatt-hours (kWh) from 485.52 million kWh in 2006,\nrepresenting a 12% increase. Peak load for the year was 86.83 MW compared with\n79.04 MW in 2006, representing a 10% increase. Total customers increased 8% to\nmore than 22,700 in 2007.\n\n\nGeneral Comments...