CUC Announces Third Quarter Results for the Period Ended September 30, 2011

    




 Caribbean Utilities Company, Ltd. is listed for trading in United States  dollars on the Toronto Stock Exchange under the trading symbol "CUP.U". 

 GRAND CAYMAN, Cayman Islands, Nov. 3, 2011 /CNW/ - Caribbean Utilities  Company, Ltd. ("CUC" or the "Company") announced today its unaudited  results for the three months ended September 30, 2011 ("Third Quarter   2011") (all figures are in United States dollars). 

 Electricity sales revenues decreased $0.1 million, or 1%, to $19.0  million for the Third Quarter 2011, from $19.1 million for the three  months ended September 30,( )2010, ("Third Quarter 2010") as a result of a 1% kilowatt-hour ("kWh")  sales decline experienced quarter over quarter. Sales for the Third  Quarter 2011 totalled 151.2 million kWh, a decrease of 1.5 million kWh,  or 1%, in comparison to 152.7 million kWh for the Third Quarter 2010.  Analysis of electricity sales data indicate a reduction in electricity  consumption which may be caused by energy conservation in response to  high fuel costs. Fuel rates in the Third Quarter 2011 were the highest  for 2011 averaging $4.74 per Imperial Gallon (IG) compared to $3.47 per  IG for the same period last year. Reductions experienced in the  island's population also negatively impacted sales for the Third  Quarter 2011 as compared to the Third Quarter 2010. 

 Net earnings for the Third Quarter 2011 totalled $6.3 million, a  decrease of $0.3 million, or 5%, when compared to $6.6 million for the  Third Quarter 2010. A 1% decline in kWh sales and higher general and  administration, transmission and distribution and finance costs were  partially offset by a decrease in consumer service and maintenance  costs for the Third Quarter 2011 when compared to the Third Quarter  2010. 

 After the adjustment for dividends on the preference shares of the  Company, earnings on Class A Ordinary Shares for the Third Quarter 2011  were $6.1 million, or $0.22 per Class A Ordinary Share, a decrease of  $0.4 million when compared to $6.5 million, or $0.23 per Class A  Ordinary Share for the Third Quarter 2010. 

 CUC's President and Chief Executive Officer Mr. Richard Hew said, "The  weak economy and high fuel prices continue to negatively impact sales  and earnings. The Company continues to respond by containing  discretionary capital and operational expenditures, while operating in  an efficient manner and providing a safe and reliable service to our  customers." 

 Following the shortfall in generation capacity experienced earlier in  the year due to mechanical failures, the Company successfully restored  its capacity to normal levels in the Third Quarter 2011. As a result,  there were no outages related to generation capacity and reliability to  customers during the Third Quarter 2011, as measured by the Average  Service Availability Index, was 99.96%. 

 During the Third Quarter CUC also continued its efforts to employ  renewable energy sources and invited interested parties to submit an  Expression of Interest and Preliminary Proposal for the financing,  construction, ownership and operation of renewable energy generation  facilities. It is the Company's intention to accept up to 13 megawatts  ("MW") in aggregate of grid-connected renewable energy generators on  Grand Cayman. 

 CUC's Third Quarter 2011 results and related Management's Discussion and  Analysis ("MD&A") for the Third Quarter 2011 are attached to this  release and incorporated by reference and can be accessed by clicking  the link below: 

 http://preview1.newswire.ca/media/2011/11/03/20111103-549337-6158-07ae0ebc-d185-454a-9054-9e5098abb463.pdf 

 The Management's Discussion and Analysis section of this report contains  a detailed discussion of CUC's unaudited third quarter financial  results, the Cayman Islands economy, liquidity and capital resources,  capital expenditures and the business risks facing the Company. The  release and Third Quarter Report 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  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 with caption: "Q3 2011 CUC MDA and FS". PDF available at:  http://stream1.newswire.ca/media/2011/11/03/20111103_C2590_DOC_EN_6158.pdf




Caribbean Utilities Company, Ltd.


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


    

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