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
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that Tappest will exhibit MooseFS at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that EARP will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
Regardless of what business you’re in, it’s increasingly a software-driven business. Consumers’ rising expectations for connected digital and physical experiences are driving what some are calling the "Customer Experience Challenge.” In his session at @DevOpsSummit at 20th Cloud Expo, Marco Morales, Director of Global Solutions at CollabNet, will discuss how organizations are increasingly adopting a discipline of Value Stream Mapping to ensure that the software they are producing is poised to o...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
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...
Interested in leveling up on your Cloud Foundry skills? Join IBM for Cloud Foundry Days on June 7 at Cloud Expo New York at the Javits Center in New York City. Cloud Foundry Days is a free half day educational conference and networking event. Come find out why Cloud Foundry is the industry's fastest-growing and most adopted cloud application platform.
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...