Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange
GRAND CAYMAN, Cayman Islands, Nov. 1, 2012 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its unaudited results for the Third Quarter ended September 30 th 2012 (all figures in United States dollars).
Net earnings for the three months ended September 30, 2012 ("Third Quarter 2012") totalled $6.6 million, an increase of $0.3 million, or 5%, when compared to $6.3 million for the three months ended September 30, 2011 ("Third Quarter 2011"). Lower finance charges and an increase in other income were partially offset by a 1% decline in kilowatt-hour (kWh) sales and higher depreciation costs for the Third Quarter 2012 when compared to the Third Quarter 2011.
After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for the Third Quarter 2012 were $6.5 million, an increase of $0.4 million, or 7%, from $6.1 million, for the Third Quarter 2011. Earnings per Class A Ordinary Share for the Third Quarter 2012 were $0.22, comparable to Earnings per Class A Ordinary Share for the Third Quarter 2011.Net earnings for the nine months ended September 30, 2012 decreased by 11% to $13.6 million from $15.3 million for the same period in 2011. Earnings per Class A Ordinary Share for the nine months ended September 30, 2012 were $0.46, down from $0.53 per Class A Share for the same period last year. This decline was driven by higher depreciation costs and a 1% decline in kWh sales. President and CEO, Mr. Richard Hew, says, "Electricity sales for this quarter and earnings year to date were negatively impacted by the continuing weak economy, relatively high fuel prices and wetter than normal months. However, despite these circumstances, the Company continues to meet its obligations of providing a safe, reliable and efficient service to the residents of Grand Cayman while providing a reasonable return to shareholders through prudent management of its resources." The Company's reliability as measured by the Average System Availability Index was 99.95% for Third Quarter 2012 reflecting the percentage of time power is available to customers. Capital expenditures for the nine months ended September 30, 2012 totaled $21.6 million including $8.5 million for Distribution System upgrades, $4.1 million for Generation Asset upgrades and $2.5 million for the Company's Advanced Metering Infrastructure ("AMI") system. The installation of the new AMI system continued over the quarter under review. Over seven thousand, four hundred new meters have already been installed. The AMI system allows CUC to measure, collect and analyze energy usage more effectively, to communicate directly with metering services such as electricity meters, either on request or on a schedule, and to shorten the delivery time for various customer services. The AMI project is expected to be completed in the first quarter of 2014.