Electricity sales for the third
quarter of 2010 were down, compared to 2009’s third quarter, although
nine-month earnings were up 8 per cent over last year, according to the
Caribbean Utilities Company report for the period ending 30 September.
Third quarter sales for 2010
totalled 152.7 million kilowatt hours (kWh) in comparison to 153.3 million kWh
for the same period in 2009. Electricity
sales were adversely affected by cooler and wetter weather compared to last
year, the report stated.
For the nine months ended on 30
September, 2010, electricity sales increased by 2 per cent to 425.9 kWh,
compared to 415.6 kWh for the same period last year.
The increase in nine-month sales
was due to higher average temperatures during the first six months of the
period.
Electricity sales revenue for the
third quarter of 2010 was down slightly at $19.1 million from $19.2 million for
the same period in 2009.
Electricity sales were up $1.8
million or 4 per cent for the nine months ended September 30, 2010 to $53.4
million compared to $51.6 million for the nine months ended 30 September, 2009
mainly due to the weather influence and the resulting 2 per cent increase in
sales.
Net earnings for the third quarter
were $6.6 million, down from net earnings for the three months ended 30 September,
2009.
Net earnings for the nine months
ending 30 September, 2010 were up $1.1 million, or 8 per cent, at $15.2 million
compared to net earnings of $14.1 million for the nine months ended 30
September, 2009.
The increase was mainly due to
higher temperatures in the first half of 2010.
Higher depreciation and financing costs in 2010 offset lower
maintenance, general and administration and distribution expenses, the report
stated.
The total number of customers
currently connected is at 25,968, with 151 new customers added during the third
quarter.
“As expected, we are seeing very
weak underlying growth in sales through the first three quarters of 2010, and
this weakness is expected to continue through 2011,” said Richard Hew,
president and CEO of CUC. “The company continues to focus on trimming capital
and other expenditures to preserve cash while meeting its obligations to serve
reliably.”
In a letter to shareholders, CUC
said it continues to focus on reliability projects that were started prior to
the economic downturn which will complete elements of their strategic
reliability investment program.
The Rum Point to Frank Sound
transmission line has been completed and work will begin shortly, the CUC
said. Portable substation equipment will
be used to meet increased demand and improve reliability in the Prospect area
until permanent substations can be built.
In early October, the Cayman
Islands government announced that a Doppler radar facility for weather
prediction will be installed in the East End district which will prevent the
advancement of a wind generation project proposed for the same vicinity.
CUC still looks to expand into
renewable energy sources and to further develop alternative energy sources, the
report said.
CUC expects a contraction in growth
on island to last through 2011 with fewer major construction projects. CUC will
focus on trimming expenses and preserving cash while still meeting obligations
to serve customers reliably.
Caribbean Utilities Company, Ltd is
listed for trading in United States dollars on the Toronto Stock Exchange under
the trading symbol CUP.U
CUC began operations in the Cayman
Island on 10 May, 1966 and currently employs 194 employees.
CUC is a vertically integrated
utility which operates the only electric utility on Grand Cayman pursuant to a
20-year exclusive Transmission and Distribution Licence and a 21.5-year,
non-exclusive Generation Licence granted by the government, which will expire
in April 2028 and September 2029 respectively.
Caribbean Utilities Company, Ltd is
listed for trading in United States dollars on the Toronto Stock Exchange under
the trading symbol CUP.U
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