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Caribbean Utilities Co Ltd
Symbol CUP
Shares Issued 33,593,624
Close 2020-07-31 U$ 15.01
Recent Sedar Documents

Caribbean earns $4.5-million (U.S.) in Q2

2020-08-01 00:17 ET - News Release

Mr. Richard Hew reports

CARIBBEAN UTILITIES COMPANY, LTD Q2 2020 INTERIM REPORT

Caribbean Utilities Co. Ltd. has released its unaudited results for the three and six months ended June 30, 2020 (all dollar amounts are stated in U.S. dollars).

Results for the company for the three months ended June 30, 2020, reflect the impact COVID-19 has had on the company's business and Grand Cayman's economy.

Operating income for second quarter 2020 totalled $5.6-million, a decrease of $2.6-million when compared with operating income of $8.2-million for the three months ended June 30, 2019. The decrease is primarily attributable to lower electricity sales revenues and higher depreciation, maintenance and consumer service expenses.

Net earnings for Q2 2020 totalled $4.5-million, a decrease of $3.4-million from $7.9-million for Q2 2019. In addition to the items impacting operating income, net earnings were also negatively impacted by higher finance charges driven by higher long-term debt and lower allowance for funds used during construction (AFUDC).

After the adjustment for dividends on the preference shares of the company, earnings on Class A ordinary shares for Q2 2020 were $4.4-million, or 13 cents per Class A ordinary share, compared with earnings on Class A ordinary shares of $7.8-million, or 24 cents per Class A ordinary share for Q2 2019.

Operating income for the six months ended June 30, 2020, totalled $10.4-million, a decrease of $2.8-million when compared with operating income of $13.2-million for the six months ended June 30, 2019. The decrease is primarily attributable to higher depreciation, maintenance, transmission and distribution expenses.

Net earnings for the six months ended June 30, 2020, totalled $8.3-million, a decrease of $4.2 million when compared with net earnings of $12.5-million for the six months ended June 30, 2019. In addition to the items impacting operating income, net earnings were also negatively impacted by higher finance charges driven by higher long-term debt.

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, 2020, were $8.1-million, or 24 cents per Class A ordinary share, compared with earnings on Class A ordinary shares of $12.3-million, or 37 cents per Class A ordinary share, for the six months ended June 30, 2019.

Sales for Q2 2020 totalled 165.5 million kilowatt-hours, a decrease of 7.5 million kilowatt-hours in comparison with 173.0 million kilowatt-hours for Q2 2019. Sales for the six months ended June 30, 2020, totalled 317.9 million kilowatt-hours, a decrease of 1.5 million kilowatt-hours in comparison with 319.4 million kilowatt-hours for the six months ended June 30, 2019. The decrease in sales for Q2 2020 and the six months ended June 30, 2020, is primarily due to a decrease in the average consumption of large and general commercial customers due to the COVID-19 pandemic. The decrease was partially offset by an increase in the average consumption of residential customers as air conditioning usage increased with more persons working from home.

Second quarter 2020 also saw an increase in the company's customer base. Total customers as at June 30, 2020, were 30,704, an increase of 604 customers, or 2 per cent, compared with 30,100 customers as at June 30, 2019.

President and chief executive officer Richard Hew stated: "The COVID-19 pandemic severely impacted Grand Cayman's economy throughout the second quarter with the airport remaining closed, the tourism industry shuttered and significant numbers of residents unemployed. Throughout the period, CUC continued to deliver safe and reliable electricity service to its customers even to those who experienced difficulties paying their bills. I wish to express sincere thanks to all the public service officials and local vendors for their assistance with logistics and supplies and CUC employees for their exceptional work and dedication during the crisis period."

Caribbean Utilities provides electricity to Grand Cayman, Cayman Islands, under an electricity generation licence expiring in 2039 and an exclusive electricity transmission and distribution licence expiring in 2028.

We seek Safe Harbor.

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