CUC 4th quarter earnings up 79 per cent

Caribbean Utilities Company
announced that its net earnings for the last three months of 2009 jumped 79 per
cent.

Warmer weather in during that
period is credited with the increase – from US$3.3 million during the same
period in 2008 to US$5.9 million. The company saw an 11 per cent growth in
sales of kilowatt hours of electricity quarter over quarter.

President and CEO of CUC Richard
Hew said: “We are pleased with the company’s performance this quarter which was
helped by the relatively warm and dry weather for the period as compared to
last year.”

He said last year’s fourth quarter
figures were negatively impacted by cooler than average temperatures and by
Hurricane Paloma.

He added: “Although growth in sales
on the Island has slowed compared to recent years, the company has managed to
minimise the effect on earnings through reduced capital and other expenditures
and will continue to seek opportunities to operate the business within the
available financial resources.”

The company also released its net
earnings for the 12 months ended December 31, 2009, which were US$20 million,
representing a 1 per cent or US$0.2 million increase from net earnings of $19.8
million for the 12 months ended December 31, 2008.

This increase was primarily due to
a 2 per cent sales growth in kilowatt hours of electricity and lower general
and administration, consumer service and promotion, transmission and
distribution, maintenance and finance costs in 2009, according to the company.

These factors were partially offset
by higher depreciation costs in 2009 and a favourable fuel cost recovery due to
timing of recovery in 2008. The introduction of a fuel tracker 2 mechanism in
the company’s 2008 transmission and distribution licence has eliminated
favourable or adverse timing differences in fuel cost recovery.

Operating revenues decreased 18 per
cent, or $9.6 million, to US$43.9 million for the three months ended December
31, 2009 from US$53.5 million for the three months ended December 31, 2008.

Operating revenues decreased 24 per
cent, or US$49.2 million, to US$158.8 million for the 12 months ended December
31, 2009 from $208.0 million for 2008.

Operating revenues are lower mainly
due to lower fuel factor revenues in 2009 driven by lower fuel costs, the
company stated in its financial report.

Mr. Hew added: “Reliability,
measured by the average system availability index, was 99.96 per cent and
exceeded 2008 results.

“CUC will strive to maintain this
performance through the completion of capital projects such as the Rum Point to
Frank Sound transmission line and other operational improvements.”

1 COMMENT

  1. I congratulate CUC on there excellent system availability record; but of course with a cost plus agreement on an essential commodity I could make an elephant fly reliably..
    Since CUC has been operating for years under a guaranteed earning minimum, they should also be tied to an earning maximum.. I await my rebate to help pay for my windmill..

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