CUC Announces Second Quarter Results for the Period Ended June 30th, 2012

    




 Caribbean Utilities Company, Ltd. is listed for trading in United States  dollars on the Toronto Stock Exchange. 

 GRAND CAYMAN, Cayman Islands, July 31, 2012 /CNW/ - Caribbean Utilities  Company, Ltd.  ("CUC" or "the Company") announced today its  unaudited results for the Second Quarter ended June 30, 2012 (all  figures in United States dollars). 

 Net earnings for the three months ended June 30, 2012 ("Second Quarter  2012") totalled $5.1 million, a decrease of $0.8 million, or 14%, when  compared to $5.9 million for the three months ended June 30, 2011  ("Second Quarter 2011"). A 3% decline in kilowatt-hour (" kWh") sales  and higher depreciation costs and finance charges were partially offset  by decreased general and administration, consumer service and  maintenance costs for the Second Quarter 2012 when compared to the  Second Quarter 2011. 

 Sales for the Second Quarter 2012 totalled 139.9 million kWh, a decrease  of 5.0 million kWh, or 3%, in comparison to 144.9 million kWh for the  Second Quarter 2011. Sales were negatively impacted by rainy weather  conditions that reduced customer air-conditioning load. The average  monthly rainfall for the Second Quarter 2012 was 9.3 inches as compared  to an average rainfall of 4.2 inches for the same period last year and  May 2012 saw a record breaking 17.7 inches of rainfall, the highest  level on record in one month in over 9 years and the highest level on  record for the month of May in 20 years. 

 After the adjustment for dividends on the preference shares of the  Company, earnings on Class A Ordinary Shares for the Second Quarter  2012 were $5.0 million, or $0.18 per Class A Ordinary Share, a decrease  of $0.8 million from the $5.8 million, or $0.20 per Class A Ordinary  Share for the Second Quarter 2011. 

 President and CEO, Mr. Richard Hew, says, "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. We continue to focus on controlling costs while  meeting our obligations to provide a safe and reliable electricity  service to our customers. A stronger economy with real economic growth  is required to provide any material improvement in financial  performance." 

 The Company 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 analyze 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. 

 "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 added. 

 CUC's Second Quarter 2012 results and related Management's Discussion  and Analysis ("MD&A") for the period ended June 30, 2012 are  incorporated by reference and can be accessed by clicking the link at  the end of this release. 

 The MD&A section of this report contains a discussion of CUC's unaudited  Second Quarter 2012 results, the Cayman Islands economy, liquidity and  capital resources, capital expenditures and the business risks facing  the Company. The release and Second Quarter 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. 

 Certain statements in the MD&A, other than statements of historical  fact, are forward-looking statements concerning anticipated future  events, results, circumstances, performance or expectations with  respect to the Company and its operations, including its strategy and  financial performance and condition.  

 Forward looking statements include statements that are predictive in  nature, depend upon future events or conditions, or include words such  as "expects", "anticipates", "plan", "believes", "estimates",  "intends", "targets", "projects", "forecasts", "schedule", or negative  versions thereof and other similar expressions, or future or  conditional verbs such as "may", "will", "should", "would" and "could".  Forward looking statements are based on underlying assumptions and  management's beliefs, estimates and opinions, and are subject to  inherent risks and uncertainties surrounding future expectations  generally that may cause actual results to vary from plans, targets and  estimates. Some of the important risks and uncertainties that could  affect forward looking statements are described in the MD&A in the  section labeled "Business Risks" and include but are not limited to  operational, general economic, market and business conditions,  regulatory developments and weather. CUC cautions readers that actual  results may vary significantly from those expected should certain risks  or uncertainties materialize, or should underlying assumptions prove  incorrect. Forward-looking statements are provided for the purpose of  providing information about management's current expectations and plans  relating to the future. Readers are cautioned that such information may  not be appropriate for other purposes. The Company disclaims any  intention or obligation to update or revise any forward-looking  statements, whether as a result of new information, future events or  otherwise except as required by law. 


SOURCE  Caribbean Utilities Company, Ltd.




PDF available at:  http://stream1.newswire.ca/media/2012/07/31/20120731_C4074_DOC_EN_16563.pdf




Caribbean Utilities Company, Ltd.


CONTACT:  Contact: Letitia LawrenceVice President Finance and Chief Financial OfficerPhone: [phone]E-Mail: [e-mail] 


    

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