CUC Announces Second Quarter Results for the Period Ended
October 31, 2006
GRAND CAYMAN, Cayman Islands, Nov. 27 /CNW/ - Caribbean Utilities
Company, Ltd. ("CUC" or "the Company") announced today its unaudited results
for the second quarter ended October 31, 2006 (all figures in United States
dollars).
"CUC completed a strong second quarter and half-year 2007 fiscal
performance due to a combination of strong organic growth and the hurricane
recovery," remarked Richard Hew, CUC President and Chief Executive Officer.
"Second quarter earnings on Class A Ordinary Shares were $6.7 million, or
$0.27 per share, compared to $6.5 million, or $0.26 per share, for second
quarter 2006. Year-to-date earnings on Class A Ordinary Shares were
$14.4 million, or $0.57 per share, a 9% increase over $13.2 million, or $0.52
per share, in fiscal 2006."
Operating revenues for the second quarter were $42.9 million, a 19%
increase over $35.9 million for the same period last year. Operating revenues
for the six months ended October 31, 2006 totaled $84.2 million, a 24%
increase from $67.7 million for the first six months of fiscal 2006.
Second quarter electricity sales increased 10% over last year to
134.6 million kiloWatt-hours ("kWh"). Year-to-date electricity sales increased
12% to 265.6 million kWh. Fiscal 2007 sales growth is forecasted at 10%. Total
customers as at October 31, 2006 were 22,052, an increase of 9% over last
year. Generating capacity at quarter-end was 120 MW, and CUC reached a new
record peak load of 86.8 MW in October.
Reliability to customers for the second quarter, as measured by the
Average Service Availability Index, was 99.92% compared to 99.82% a year ago.
Year-to-date reliability was 99.93% compared to 99.81% a year ago. CUC
recently completed two capital projects that will greatly improve reliability:
(1) the refurbished and upgraded engine room containing four hurricane-damaged
Caterpillar units, totaling 16.8 MW, that have been restored and returned to
service; and (2) a newly installed 8.4 MW MAN gas turbine that is also
available for service.
"Rising fuel costs in spring and summer 2006 significantly affected our
customers through an increased fuel factor," noted Mr. Hew. "While we have no
control over fuel price fluctuations, we are concerned about their impact on
customers. Therefore, we were pleased to see fuel prices fall in September and
October, which will reduce the fuel factor and provide relief to customers
beginning in December. We continue to provide information and free energy
audits through our Energy Smart programme to help customers reduce their
electricity consumption. CUC also continues to explore alternative energy
technologies that may prove viable for Grand Cayman."
"We are delighted to announce the promotion of Andrew Small to
Vice-President Production in August and welcome him to the executive team,"
said Mr. Hew. "Andrew is a CUC scholarship recipient who, like many young
Caymanians, has risen through the ranks of the Company while contributing
greatly to its success."
The Board of Directors declared in early November a regular quarterly
dividend of US$0.165 per Class A Ordinary Share, or an annualized dividend of
US$0.66 per share, which will be payable December 11, 2006 to shareholders of
record November 20, 2006.
CUC's Second Quarter Report for the period ended October 31, 2006 is
incorporated by reference to this release and can be accessed by clicking the
link below:
http://files.newswire.ca/520/cuc.pdf
The release and Second Quarter Report can be accessed at
www.cuc-cayman.com (Investor Relations/Press Releases) and at www.sedar.com.
CUC is the sole provider of electricity to Grand Cayman, Cayman Islands
and operates under a 25-year exclusive Licence with the Government of the
Cayman Islands, which expires in January 2011. Further information is
available at www.cuc-cayman.com.
Caribbean Utilities Company, Ltd. ("CUC" or "the Company"), on occasion,
includes forward-looking statements in its media releases, Canadian securities
regulatory authorities filings, shareholder reports and other communications.
Forward-looking statements are based on underlying assumptions by their very
nature and are subject to certain risks and uncertainties that may cause
actual results to vary from plans, targets and estimates. Such risks and
uncertainties include but are not limited to general economic, market and
business conditions, regulatory developments and weather conditions. CUC
cautions readers that actual results may vary significantly from those
expected should certain risks or uncertainties materialize or should
underlying assumptions prove incorrect. 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.
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