Welcome!

News Feed Item

CUC Announces Second Quarter Results for the Period Ended June 30, 2014

Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange.

GRAND CAYMAN, Cayman Islands, Aug. 1, 2014 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its unaudited results for the Second Quarter ended June 30, 2014 (all figures in United States dollars).

Net earnings for the three months ended June 30, 2014 ("Second Quarter 2014") totalled $5.7 million, comparable to the net earnings for the three months ended June 30, 2013 ("Second Quarter 2013").  Higher electricity sales revenues in the Second Quarter 2014 were offset primarily by higher consumer service and maintenance costs.

After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for the Second Quarter 2014 were $5.6 million, or $0.20 per Class A Ordinary Share, comparable to earnings on Class A Ordinary Shares and earnings per Class A Ordinary Share for the Second Quarter 2013.

Net earnings for the six months ended June 30, 2014 totalled $9.2 million, an increase of $0.6 million when compared to $8.6 million for the six months ended June 30, 2013. This increase was due primarily to higher electricity sales revenues and lower depreciation costs.  These items were partially offset by higher consumer service and finance charges.

After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for the six months ended June 30, 2014 were $9.0 million, or $0.31 per Class A Ordinary Share, an increase of $0.6 million from the $8.4 million, or $0.29 per Class A Ordinary Share for the six months ended June 30, 2013.

Sales for the Second Quarter 2014 totalled 144.5 million kilowatt-hours ("kWh"), an increase of 0.2 million kWh when compared to 144.3 million kWh for the Second Quarter 2013. Sales for the six months ended June 30, 2014 totaled 275.2 million kWh, an increase of 5.5 million kWh in comparison to 269.7 million kWh for the six months ended June 30, 2013.  Sales for the Second Quarter 2014 and the six months ended June 30, 2014 were positively impacted by warmer weather conditions and an increased number of customers when compared to the same periods last year.

President and CEO, Mr. Richard Hew, says, "The Company continues to position itself to meet the current and future energy needs of Grand Cayman by making the necessary investment in infrastructure while remaining focused on controlling our operating expenditures and providing our customers with a safe and reliable electricity service."

Capital expenditures totaled $7.5 million and the Company's reliability of service as measured by the Average Service Availability Index was recorded at 99.96% for the Second Quarter 2014.

In June 2014, following review and approval by the Electricity Regulatory Authority ("ERA"), the Company increased its base rates by 1.5% as allowed under the rate cap and adjustment mechanism ("RCAM").  During the period under review, an independent, comprehensive, allocated Cost of Service Survey ("COSS") was also completed and submitted to the ERA for review. As a result of the COSS, the Company adjusted its base rates for a 1% reduction to the residential customer category, a 2.8% increase to the general commercial customer category and a 1.1% increase to the large commercial customer category.  Altogether, these adjustments equate to the 1.5% RCAM base rate increase.

The ERA cancelled the previous solicitation process for firm generation in July 2013. This process had been initiated by a Certificate of Need ("CON") issued by CUC in November 2011. The CON was driven primarily by the upcoming retirement of some of the Company's generating units due to begin this year.

Following the issuance of a new CON in October 2013, the ERA has since restarted the process and bids were submitted by qualified bidders, including CUC, in May 2014. A decision is expected imminently as the time given by the ERA for the announcement of the winning bidder was late July.

During the Second Quarter 2014, CUC secured the supply of 7.5 megawatts ("MW") of temporary mobile generation following the retirement of 17.5 MW of generation.  This temporary generation will complement existing generation and help to ensure continuity of supply until the installation of the firm capacity.

During the period under review the Company embarked on a number of initiatives which will continue to enhance the level of service it provides to its customers by offering additional off-site bill payment locations with convenient opening hours, and by improving its Pay-By-Telephone service.  More resources were also added to the Company's Customer Contact Center to improve e-mail and telephone inquiry response times.

The Advanced Metering Infrastructure ("AMI") project is slated for substantial completion by the end of 2014. To date over 8,000 customers have the AMI meters which will assist them with regularly managing their energy usage. The project will provide real-time consumption information and bring efficiencies to meter reading as well as other services. AMI will also enable a Pay-As-You-Go payment option which will help customers to monitor and control their electricity consumption.   

CUC's Second Quarter results and related Management's Discussion and Analysis ("MD&A") for the period ended June 30, 2014 are attached to this release and incorporated by reference and can be accessed by clicking the link at the end of this release.

The MD&A section of this report contains a discussion of CUC's unaudited 2014 Second Quarter results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and Second Quarter 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.

Certain statements in the MD&A, other than statements of historical fact, are forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to the Company and its operations, including its strategy and financial performance and condition.

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 and management's beliefs, estimates and opinions, and are subject to inherent risks and uncertainties surrounding future expectations generally that may cause actual results to vary from plans, targets and estimates. Some of the important risks and uncertainties that could affect forward looking statements are described in the MD&A in the section labeled "Business Risks" and include but are not limited to operational, general economic, market and business conditions, regulatory developments and weather. CUC cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. 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 except as required by law.

SOURCE Caribbean Utilities Company, Ltd.

PDF available at: http://stream1.newswire.ca/media/2014/08/01/20140801_C9321_DOC_EN_42324.pdf

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant th...
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
Today traditional IT approaches leverage well-architected compute/networking domains to control what applications can access what data, and how. DevOps includes rapid application development/deployment leveraging concepts like containerization, third-party sourced applications and databases. Such applications need access to production data for its test and iteration cycles. Data Security? That sounds like a roadblock to DevOps vs. protecting the crown jewels to those in IT.
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness.
Many companies start their journey to the cloud in the DevOps environment, where software engineers want self-service access to the custom tools and frameworks they need. Machine learning technology can help IT departments keep up with these demands. In his session at 21st Cloud Expo, Ajay Gulati, Co-Founder, CTO and Board Member at ZeroStack, will discuss the use of machine learning for automating provisioning of DevOps resources, taking the burden off IT teams.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
Why Federal cloud? What is in Federal Clouds and integrations? This session will identify the process and the FedRAMP initiative. But is it sufficient? What is the remedy for keeping abreast of cutting-edge technology? In his session at 21st Cloud Expo, Rasananda Behera will examine the proposed solutions: Private or public or hybrid cloud Responsible governing bodies How can we accomplish?
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
Cloud-based disaster recovery is critical to any production environment and is a high priority for many enterprise organizations today. Nearly 40% of organizations have had to execute their BCDR plan due to a service disruption in the past two years. Zerto on IBM Cloud offer VMware and Microsoft customers simple, automated recovery of on-premise VMware and Microsoft workloads to IBM Cloud data centers.
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
With the rise of DevOps, containers are at the brink of becoming a pervasive technology in Enterprise IT to accelerate application delivery for the business. When it comes to adopting containers in the enterprise, security is the highest adoption barrier. Is your organization ready to address the security risks with containers for your DevOps environment? In his session at @DevOpsSummit at 21st Cloud Expo, Chris Van Tuin, Chief Technologist, NA West at Red Hat, will discuss: The top security r...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...