Business
CUC Announces Fourth Quarter and Twelve Month Results for the Period Ended December 31, 2009
CUC Announces Fourth Quarter and Twelve Month Results for the Period Ended December 31, 2009
About this update from Caribbean Utilities Co. Ltd. Class A
[{"type":"text","content":"\n\n\n\nFeb. 4, 2010 (Canada NewsWire Group) -- GRAND CAYMAN, CAYMAN ISLANDS, Feb. 4 /CNW/ -- Caribbean Utilities Company, Ltd. (\"CUC\" or the \"Company\") announced today its unaudited results for the fourth quarter and 12 months ended December 31, 2009 (all figures in United States dollars).Net earnings for the three months ended December 31, 2009 were $5.9 million, representing an increase of 79% or $2.6 million from net earnings of $3.3 million for the three months ended December 31, 2008. This increase in earnings is primarily due to an 11% kWh sales growth quarter over quarter.President and CEO of CUC Mr. Richard Hew said, \"We are pleased with the Company's performance this quarter which was helped by the relatively warm and dry weather for the period as compared to last year. Fourth quarter 2008 was negatively impacted by cooler than average temperatures, higher than average rainfall and the passage of Hurricane Paloma.\" He added, \"Although growth in sales on the island has slowed compared to recent years, the Company has managed to minimize the effect on earnings through reduced capital and other expenditures and will continue to seek opportunities to operate the business within the available financial resources.\"Net earnings for the twelve months ended December 31, 2009 were $20.0 million, representing a 1% or $0.2 million increase from net earnings of $19.8 million for the twelve months ended December 31, 2008. This increase in earnings is primarily due to 2% kWh sales growth and lower general and administration, consumer service and promotion, transmission and distribution, maintenance and finance costs in 2009. These factors were partially offset by higher depreciation costs in 2009 and a favourable fuel cost recovery due to timing of recovery in 2008. The introduction of a fuel tracker mechanism in the Company's 2008 Transmission & Distribution Licence has eliminated favourable or adverse timing differences in fuel cost recovery.Operating revenues decreased 18%, or $9.6 million, to $43.9 million for the three months ended December 31, 2009 from $53.5 million for the three months ended December 31, 2008. Operating revenues decreased 24%, or $49.2 million, to $158.8 million for the twelve months ended December 31, 2009 from $208.0 million for the twelve months ended December 31, 2008. Operating revenues are lower...