Caribbean Utilities Company announced this week its unaudited results for the first quarter ended 31 March, 2011, (all figures in United States dollars).
Despite continuing weak economic conditions on Grand Cayman during the three months ended 31 March, the company continued its steady performance with marginal growth in sales and total customers, and an increase in net earnings compared to the three months ended 31 March, 2010.
Kilowatt-hour sales for the first quarter 2011 totalled 125.2 million, an increase of 1.8 million kwh, or 1.5 per cent, compared to 123.4 million kwh for the first quarter 2010.
The total number of customers at the end of the first quarter 2011 was up by 2 per cent at 26,261 compared to 25,676 at the end of the first quarter 2010.
The company had a net increase of 110 customers for the first quarter 2011.
Net earnings for the first quarter 2011 increased by $0.6 million, to $3.1 million, compared to $2.5 million for the first quarter 2010.
This increase is due to the 1.5 per cent kwh sales growth for the period and lower transmission and distribution and maintenance expenses.
Maintenance expenses for the first quarter 2011 were expected to be lower than in 2010 due to various capital projects scheduled for 2011.
These factors were partially offset by higher depreciation expense in the first quarter 2011.
“CUC continues to focus on containing discretionary expenditure while continuing to invest in existing and new assets critical to maintaining the safe and reliable service our customers value,” said CUC President and CEO Richard Hew.
“The first quarter was a challenging one operationally with generation plant failures that unfortunately caused injuries to two of our employees and led to customer outages. However, we have responded positively and are confident that our operations will be returned to normal by midyear.”
During the first quarter 2011, the Electricity Regulatory Authority approved the company’s proposed 2011-2015 capital investment of $134 million, excluding generation expansions which are subject to a competitive bid process.
The MD&A section of this report contains a discussion of CUC’s unaudited first quarter 2011 results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company.
The release and first quarter 2011 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 Caribbean Utilities Company, Ltd is listed for trading in United States dollars on the Toronto Stock Exchange under the trading symbol CUP.U