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, Feb. 10, 2023 /CNW/ - Caribbean Utilities
Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today
its audited results for the twelve-month period ended December 31, 2022 (all figures in United States dollars).
Despite the challenges of 2022, with rising inflationary
pressures and fuel cost, the Cayman
Islands economy proved to be resilient. New customers and
developments in the construction sector was the driving factor for
the Company's 2% kWh sales growth and a 2% increase in the summer
peak load.
There was also an increase in the Company's customer base, the
total customers as at December 31,
2022 were 33,119, an increase of 934 or 3% compared to
32,185 customers as at December 31,
2021.
During 2022, the Company and the community had to cope with
rising fuel costs and the impact on customer bills. The
Company's average price per imperial gallon ("IG") of fuel for the
twelve months ended December 31, 2022
increased by 61% to $4.67 in
comparison to $2.90 for the twelve
months ended December 31,
2021.
In July 2022, the Cayman Islands
Government initiated the Electricity Assistance Relief Programme to
assist residential customers with the impact of high fuel prices
through to the end of the year. In addition, in October 2022, the regulator approved the proposed
CUC Fuel Relief Programme applicable to all customers to reduce the
financial impact of the fuel cost spike to all customer from
October 1, 2022 to December 31, 2022. This action by CUC reinforces
its commitment to its Sustainability plan and speaks specifically
to Energy Affordability, one of the Environmental, Social and
Governance initiatives which has been prioritized by the Company.
The Company continues to reinvest in its infrastructure and
upgrade its systems. The Company also continues to develop
projects aimed at increased reliability, increased renewable energy
penetration and lower costs to customers and provide value to its
shareholders. During 2022, CUC recorded exceptional
reliability performance, the Company's 2022 reliability results
surpassed that of the 2021 North American Average for electricity
service interruption (2022 not yet available) while the Company
continued to maintain a consistent standard in its safety
performance overall.
In 2022, two new 13 kilovolt feeders were completed and put into
service. These feeders will provide improved reliability for
approximately 13,000 residential customers in the Prospect and
Newlands areas.
In September 2022, the Company
signed an agreement with the technology group Wärtsilä for the
supply of two 10 MW energy storage systems. In November 2022, the Company also signed an
agreement with MAN Energy Solutions SE for life-cycle upgrades for
five existing engines with a total capacity of 68 MW. These
upgrades will increase the fuel efficiency and extend the useful
life of the engines and allow the use of alternate, cleaner fuel
sources. These projects all form a part of CUC's integrated
resource plan as CUC seeks to reduce its reliance on fossil fuels
and increase renewable energy penetration.
Reflecting on the past year, President and CEO Mr. Hew stated,
"2022 was a positive year for the Company. Significant effort was
made by CUC to innovate and progress major projects while
continuing to offer operational excellence. The Company responded
well in the aftermath of Tropical Storm Ian and not many customers
were without electricity service for a long period of time. Most
financial experts are predicting a global recession in 2023 and
that means that the Cayman Islands
may likely see some slowing in the economy. CUC will remain
vigilant and focussed on being an efficient operation while
providing an excellent service to its customers."
Net earnings for the year ended December
31, 2022 ("Fiscal 2022") were $33.2
million, a $2.9 million
increase from net earnings of $30.3
million for the year ended December
31, 2021 ("Fiscal 2021"). This increase is primarily
attributable to higher operating income and slightly lower finance
charges.
After the adjustment for dividends on the preference shares of
the Company, earnings on Class A Ordinary Shares for Fiscal 2022
were $32.2 million, or $0.86 per Class A Ordinary Share, as compared to
$29.3 million, or $0.79 per Class A Ordinary Share, for Fiscal
2021. The Company calculates earnings per share on the
weighted average number of Class A Ordinary Shares outstanding. The
weighted average number of Class A Ordinary Shares outstanding
were
37,481,959 and 37,199,456 for the years ended December 31, 2022 and December 31, 2021, respectively.
Sales in kWh for Fiscal 2022 were 674.1 million kWh, an increase
of 13.6 million kWh or 2% compared to 660.5 million kWh for Fiscal
2021. The increase was driven by the 3% growth in overall
customer numbers in Fiscal 2022 compared to Fiscal 2021 and the 2%
increase in the average kWh consumption of commercial customers,
partially offset by the 2% decrease in the average kWh consumption
of residential customers. The average monthly temperature for 2022
was 82.9 degrees Fahrenheit when compared to 83.1 degrees
Fahrenheit in 2021. The average rainfall for 2022 was 4.6 inches as
compared to 3.7 inches in 2021. The new record peak load of 113.6
MW was experienced on September 11,
2022.
CUC's 2022 results and related Management's Discussion and
Analysis ("MD&A") for the twelve-month period ended
December 31, 2022 are incorporated by
reference. The release and 2022 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 2039 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", "plans",
"believes", "estimates", "intends", "targets", "projects",
"forecasts", "schedules", 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.