This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

CUC Announces Third Quarter Results For The Period Ended September 30th, 2012

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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,822.63 +109.97 0.62%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs