Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange under the trading symbol "CUP.U".
GRAND CAYMAN, Cayman Islands, March 10 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC" or "the Company") today announced its audited results for the eight-month period ended December 31, 2008 (the "Transitional Period") (all figures in United States dollars). In August of 2008, the Company announced that it planned to change its financial year-end from April 30 to December 31. This release and related disclosure are for the Transitional Period.
Earnings throughout the Transitional Period were negatively impacted by consumer rate reductions, the removal of the Hurricane Ivan Cost Recovery Surcharge, both implemented in January of 2008, and unseasonably cool and wet conditions during the last two months of the period. During the period, the Company also began to see slowing demand growth arising from the deteriorating worldwide economic conditions and their effect on Grand Cayman.
Net earnings for the Transitional Period were $12.6 million, or $0.45 per Class A Ordinary Share, which was in-line with the Company's expectations given the factors described above. Kilowatt hours (kWh) sales for the Transitional Period grew by 2% to 376.6 million kWh from 368.4 million kWh for the eight-month period ended December 31, 2007. The system peak of 93.8 Megawatts achieved in September 2008 grew 1.2% over the summer 2007 peak.
"During the Transitional Period, CUC focused its capital expenditure program, totaling $27.8 million on priority projects in view of the deteriorating economic conditions," said Richard Hew, CUC's President and CEO. The Company funded capital expenditures using the proceeds of the $28 million Class A Ordinary Share rights offering completed in August 2008. The offering also served to strengthen the Company's balance sheet. The Company continued to focus on reducing controllable operating expenditures.
Mr. Hew added that, "In the Transitional Period we devoted significant effort to the advancement of renewable energy with our wind initiative moving towards a request for proposal stage. The Company, in conjunction with the Electricity Regulatory Authority, also announced approval of the Consumer-Owned Renewable Energy program."
Reliability of service to customers as measured by the Average Service Availability Index (ASAI) remained high 99.95% for the Transitional Period compared to 99.96% for the previous year.
CUC's Transitional Period audited financial statements and related Management's Discussion and Analysis ("MD&A") are attached to this release and incorporated by reference and can be accessed by clicking the link below:
http://files.newswire.ca/520/CUCShareholderReport.pdf
The MD&A section of this report contains a discussion of Transitional Period financial results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and MD&A can be accessed at www.cuc-cayman.com (Investor Relations/Press Releases) and at www.sedar.com.
CUC provides electricity to Grand Cayman, Cayman Islands, under an Electricity Generation Licence expiring in 2029 and an exclusive Electricity Transmission and Distribution Licence expiring in 2028. 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 include statements that are predictive in nature, depend upon future events or conditions, or include words such as "expects", "anticipates", "plan", "believes", "estimates", "intends", "targets", "projects", "forecasts", "schedule", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". 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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