Ms. Letitia Lawrence reports

CUC ANNOUNCES SECOND QUARTER RESULTS FOR THE PERIOD ENDED JUNE 30, 2015

Caribbean Utilities Co. Ltd. (CUC) is releasing its unaudited results for the second quarter ended June 30, 2015 (all figures in U.S. dollars).

Net earnings for the three months ended June 30, 2015, totalled $5.5-million, a decrease of $200,000 when compared with net earnings of $5.7-million for the three months ended June 30, 2014. Net earnings for the six months ended June 30, 2015, totalled $8.8-million, a decrease of $400,000 when compared with net earnings of $9.2-million for the six months ended June 30, 2014.

These decreases in earnings were due mainly to higher depreciation, transmission and distribution, and temporary generation rental costs, partially offset by higher electricity sales revenues and other income.

After the adjustment for dividends on the preference shares of the company, earnings on Class A ordinary shares for the second quarter 2015 were $5.4-million, or 17 cents per Class A ordinary share, compared with earnings on Class A ordinary shares of $5.6-million or 20 cents per Class A ordinary share for the second quarter of 2014.

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, 2015, were $8.6-million, or 28 cents per Class A ordinary share, compared with earnings on Class A ordinary shares of $9.0-million or 31 cents per Class A ordinary share for the six months ended June 30, 2014.

These decreases in earnings per Class A ordinary share were due to lower earnings and an increase in the weighted average number of Class A ordinary shares.

During the second quarter of 2015, the company successfully completed a rights offering raising gross proceeds of $31.6-million through the issuance of 2,930,700 Class A ordinary shares. The rights offering also increased the weighted average number of Class A ordinary shares used to calculate the earnings per Class A ordinary share for the second quarter 2015, to 30,283,909, when compared with 29,105,771 for the second quarter of 2014. For the six months ended June 30, 2015, the weighted average number of Class A ordinary shares increased to 31,029,896, when compared with 29,120,811 for the six months ended June 30, 2014.

Sales for the second quarter of 2015 totalled 146.0 million kilowatt hours, an increase of 1.5 million kilowatt hours in comparison with 144.5 million kilowatt hours for the second quarter of 2014. This was driven primarily by growth in commercial customer sales.

Sales for the six months ended June 30, 2015, totalled 275.0 million kilowatt hours, a decrease of 200,000 kilowatt hours in comparison with 275.2 million kilowatt hours for the six months ended June 30, 2014. The average monthly temperature for the first six months of 2015 was 81.3 F, as compared with an average monthly temperature of 81.5 F for the first six months of 2014. Cooler temperatures reduce air conditioning load, which can negatively impact the company's sales.

Total customers as at June 30, 2015, were 28,008, an increase of 2 per cent, compared with 27,462 customers as at June 30, 2014. The company's reliability of service as measured by the average service availability index was recorded at 99.95 per cent for the second quarter of 2015, with customers experiencing, on average, less than one outage for the quarter lasting approximately one hour.

Capital expenditures for the three months ended June 30, 2015, totalled $14.0-million, an 87-per-cent increase when compared with capital expenditures of $7.5-million for the three months ended June 30, 2014. This increase was driven primarily by the company's continuing investment in its new generating plant.

Work on the company's new powerhouse building is progressing as planned. The project is on track for the handover of the first generating unit on May 1, 2016, and the second generating unit and steam turbine will be handed over on June 1, 2016. When completed, CUC will have an additional 39.7 megawatts of diesel power, including a 2.7-megawatt waste heat recovery steam turbine. The project cost is estimated at $85-million.

President and chief executive officer Richard Hew says: "I am pleased with the overall results recorded during the second quarter 2015. The successful completion of the rights offering and the progress being made on the construction of our new powerhouse are positive indications that we will have a strong financial base, and a stable and efficient power supply, to provide excellent customer service to our current and growing customer base in the summer of 2016 and beyond."

The consumer-owned renewable energy generation (CORE) program, which allows consumers to generate energy from renewable sources and be compensated through stable, long-term rates, continues to attract participants. During the second quarter of 2015, 26 customers were connected with 334 kilowatts of renewable capacity. The CORE program allows customers to connect small-scale solar systems or wind turbines to CUC's distribution system and to reduce their monthly energy bills by generating their own electricity while remaining connected to the CUC grid. Total capacity connected under the CORE program is estimated at 2,910 kilowatts.

CUC's second quarter results, and related management's discussion and analysis (MD&A), for the period ended June 30, 2015, can be accessed on-line.

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