Business
CUC Announces Fourth Quarter and Year-End Results for the Period Ended April 30, 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\n\n\ndollars on the Toronto Stock Exchange under the trading symbol "CUP.U".\n\n\nGRAND CAYMAN, Cayman Islands, May 27 /CNW/ - Caribbean Utilities Company,\nLtd. ("CUC" or "the Company") announced today its unaudited results for the\nfourth quarter and year ended April 30, 2008 (all figures in United States\ndollars).\n\n\nNet earnings for fiscal 2008 were $23.8 million, a $ 5.3 million or 29%\nincrease from $18.5 million in fiscal 2007. Earnings per Class A Ordinary\nShare increased 29% from $0.70 in 2007 to $0.90 in 2008. Kilowatt hours (kWh)\nsales growth for the year, initially forecast to be 8%, came in at 6% due to\nthe impact of cooler and wetter weather conditions experienced in the first\nhalf of the year. The system peak of 92.7 Megawatts (MW) achieved in August\n2007, grew 7% over the summer 2006 peak. The Company is projecting growth of\n5% for fiscal 2009.\n\n\nA one-time charge of $3.7 million in 2007 arising from a power plant\nrestructuring initiative, contributed to the positive year over year earnings.\n\n\nNet earnings for the three months ended April 30, 2008 were $4.4 million,\nor $0.169 per Class A Ordinary Share, compared to $4.3 million, or $0.158 per\nClass A Ordinary Share for the same period last year. This 7% increase in\nquarterly earnings and earnings per share was due to growth in kWh sales, the\npositive impact from the reduction in general and administrative expenses and\nmovement in deferred fuel costs.\n\n\nFourth quarter 2008 earnings were also negatively impacted as compared to\nthe same period last year, by consumer rate reductions. As part of the\nnegotiations with the Cayman Islands Government for new long-term licences,\nCUC agreed in January 2008 to an average 3.25% in rate reductions which\napproximates $2.1 million annually and has foregone an additional $2.5 million\nremaining on the Hurricane Ivan Cost Recovery Surcharge.\n\n\nOn April 3, 2008 the negotiations with the Cayman Islands Government were\nconcluded with CUC receiving a non-exclusive Generation Licence and an\nexclusive Transmission and Distribution Licence for terms of 21.5 and 20 years\nrespectively.\n\n\n"CUC has invested over $45 million in infrastructure this year and\n$175 million since 2004 to ensure c...