CUC generated third quarter net earnings of $7.4 million, a decrease of $0.5 million compared with the same period a year earlier. The decrease was caused by higher depreciation and finance charges relating to the completion of the 39.7 megawatt Generation Project in June 2016. These items were partially offset by higher electricity sales revenues.
After the adjustment for dividends on the preference shares of the company, third-quarter earnings of $0.22 per Class A Ordinary dropped from $0.25 per Class A Ordinary Share a year earlier.
Net earnings of $19.8 million for the first nine months of 2016 were $3.1 million higher year-on-year based on higher electricity sales revenues and lower finance charges.
“Year to date electricity sales and earnings remain strong when compared to 2015,” CUC President and CEO, Richard Hew, said. “Earnings for the review period declined slightly when compared to the same period in 2015. This reflects the financing and depreciation charges related to the significant investment in the new generation plant.”
The company completed and successfully integrated the new plant in time to serve a record system demand of 103.4 megawatts experienced in July, Mr. Hew added. The new plant also delivered on the promise of higher fuel efficiency, reducing fuel costs to customers, he said.
Sales for the nine months totaled 457.2 million kWh, an increase of 21.8 million kWh over the same period last year. Sales were positively impacted by a large commercial development and a 2 percent increase in the number of customers to 28,498.
Net fuel efficiency for the third quarter 2016 was the highest ever achieved in the company’s history, as a result of the new generating units installed in June 2016 and the discontinuation of the use of temporary mobile generation, CUC reported.
This improvement in fuel efficiency in the third quarter meant $1.1 million lower fuel costs for consumers compared to the same period last year.
The company continues to work on a 5-megawatt solar project in Bodden Town. CUC said it has substantially completed the interconnection facilities for the project, including a new 13 Kilovolts line. However, the developer, Entropy Cayman Solar Limited is behind schedule. The project is now expected to be completed in the second quarter 2017.