Caribbean Utilities Company Ltd reported net earnings $5.1 million for the three months ended 30 June, 2012. Second quarter earnings were now $0.8 million, or 14 per cent, compared to the same period twelve months ago. Kilowatt-hour sales declined 3 per cent year on year and higher depreciation costs and finance charges were partially offset by decreased general and administration, consumer service and maintenance costs in the second quarter 2011, CUC said.
The utility company said sales were negatively impacted by rainy weather conditions that reduced customer air-conditioning load.
“With a continuing weak economy, relatively high fuel prices and wetter than normal months, electricity sales and earnings for the quarter under review were negatively impacted,” CUC President and CEO Richard Hew said. He added the company continues to focus on controlling costs but warned “a stronger economy with real economic growth is required to provide any material improvement in financial performance”.
After the adjustment for dividends on the preference shares of the company earnings per share were $0.18 per Class A ordinary share down from $0.20.
CUC said it also continues with the installation of its Advanced Metering Infrastructure (AMI) system. Over five thousand new AMI meters have been installed which allows CUC to measure, collect and analyse energy usage, and communicate with the meters, either on request or on a schedule from its central office. Customers will be able to use the information provided by the AMI system to become more energy efficient, CUC said.
“We are pleased to offer this new technology to our customers. We anticipate that there will be significant benefits to CUC in terms of efficiency in operation as well as the enhanced service to electricity consumers.” Mr. Hew said.