Business
CUC Announces Audited Results for the Eight Month Transitional Period Ended December 31, 2008
Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto S...
About this update from Caribbean Utilities Co. Ltd. Class A
[{"type":"text","content":"\n\n\n\nCaribbean Utilities Company, Ltd. is listed for trading in United States\ndollars on the Toronto Stock Exchange under the trading symbol "CUP.U".\n\n\nGRAND CAYMAN, Cayman Islands, March 10 /CNW/ - Caribbean Utilities\nCompany, Ltd. ("CUC" or "the Company") today announced its audited results for\nthe eight-month period ended December 31, 2008 (the "Transitional Period")\n(all figures in United States dollars). In August of 2008, the Company\nannounced that it planned to change its financial year-end from April 30 to\nDecember 31. This release and related disclosure are for the Transitional\nPeriod.\n\n\nEarnings throughout the Transitional Period were negatively impacted by\nconsumer rate reductions, the removal of the Hurricane Ivan Cost Recovery\nSurcharge, both implemented in January of 2008, and unseasonably cool and wet\nconditions during the last two months of the period. During the period, the\nCompany also began to see slowing demand growth arising from the deteriorating\nworldwide economic conditions and their effect on Grand Cayman.\n\n\nNet earnings for the Transitional Period were $12.6 million, or $0.45 per\nClass A Ordinary Share, which was in-line with the Company's expectations\ngiven the factors described above. Kilowatt hours (kWh) sales for the\nTransitional Period grew by 2% to 376.6 million kWh from 368.4 million kWh for\nthe eight-month period ended December 31, 2007. The system peak of 93.8\nMegawatts achieved in September 2008 grew 1.2% over the summer 2007 peak.\n\n\n"During the Transitional Period, CUC focused its capital expenditure\nprogram, totaling $27.8 million on priority projects in view of the\ndeteriorating economic conditions," said Richard Hew, CUC's President and CEO.\nThe Company funded capital expenditures using the proceeds of the $28 million\nClass A Ordinary Share rights offering completed in August 2008. The offering\nalso served to strengthen the Company's balance sheet. The Company continued\nto focus on reducing controllable operating expenditures.\n\n\nMr. Hew added that, "In the Transitional Period we devoted significant\neffort to the advancement of renewable energy with our wind initiative moving\ntowards a request for proposal stage. The Company, in conjunction with the\nElectricity Regulatory Authority, also annou...