Caribbean Utilities Company, Ltd. United States dollars on the Toronto Stock Exchange under the symbol “CUP.U”.
GRAND CAMAN, Cayman Islands, October 29, 2021 / CNW / – Caribbean Utilities Company, Ltd. (TSX: CUP.U) (“CUC” or “the Company”) today announced its unaudited results for the three and nine months ended September 30, 2021 (all dollar amounts are shown in United States dollars).
Company Results for the Three Months Ended September 30, 2021 (“Third Quarter 2021” or “Q3 2021”) were stable given the impact the COVID-19 pandemic continues to have on the Cayman Islands economy, with the tourism sector remaining closed.
Net income for the third quarter of 2021 was $ 10.1 million, a decrease of $ 0.3 million compared to $ 10.4 million for the three months ending September 30, 2020 (“Third quarter 2020” or “Q3 2020”). The decrease is primarily attributable to lower operating income, partially offset by lower finance costs and higher foreign exchange gains.
The Company successfully completed a Rights Offering (the “Offering”) on October 29, 2020 and raised the gross proceeds of $ 47.8 million by issuing 3,359,362 Class A ordinary shares at a price of $ 14.24 per Class A Ordinary Share. The net proceeds of the offering were used to repay short-term debt and finance capital projects.
After adjusting for dividends on the Company’s preferred shares, the result of Class A Ordinary Shares for the third quarter of 2021 was $ 10.0 million, Where $ 0.26 per Class A common share, compared to the earnings of Class A common shares of $ 10.2 million, Where $ 0.31 per Class A common share for the third quarter of 2020.
The Company calculates earnings per share on the weighted average number of Class A common shares outstanding. The weighted average number of Class A common shares outstanding was 37,240,262 for the third quarter of 2021 and 33,593,624 for the third quarter of 2020. This increase in the weighted average number of Class A common shares outstanding was mainly due to the supply of October 2020 which resulted in the issuance of 3,359,362 Class A common shares.
Net profit for the nine months ended September 30, 2021 totaled $ 22.0 million, an increase of $ 3.3 million compared to the net profit of $ 18.7 million for the nine months ended September 30, 2020. The increase is primarily due to higher operating revenues, lower finance costs and higher other income.
After adjustment of the dividends on the preferred shares of the Company, the result of the ordinary class A shares for the nine months ended September 30, 2021 were $ 21.7 million, Where $ 0.58 per Class A common share, compared to the earnings of Class A common shares of $ 18.3 million, Where $ 0.55 per Class A Ordinary Share, for the nine months ended September 30, 2020. The weighted average number of Class A common shares outstanding was 37,263,218 for the nine months ended September 30, 2021 and 33,566,243 for the nine months ended September 30, 2020.
Third quarter 2021 sales totaled 179.9 million kWh, an increase of 4.8 million kWh, or 3% from 175.1 million kWh in the third quarter of 2020. -line with the increase of general economic activity. The average monthly temperature for the third quarter of 2021 was 85.7 degrees Fahrenheit compared to an average monthly temperature of 86.2 degrees for the third quarter of 2020. The average precipitation for the third quarter of 2021 was 6.2 inches versus 7 , 7 inches in the third quarter of 2020.
Revenue for the nine months ended September 30, 2021 totaled 494.5 million kWh, an increase of 1.6 million kWh from 492.9 million kWh for the nine months ended September 30, 2020. Sales for the three and nine months ended September 30, 2020 were negatively impacted by the COVID-19 pandemic on the Cayman Islands’ economy.
Total number of clients at September 30, 2021 were 31,964, an increase of 1,069 clients, or 3%, from 30,895 clients in the September 30, 2020.
The average fuel charge rate charged to consumers for the third quarter of 2021 was $ 0.17 per kWh, an increase of $ 0.07 per kWh compared to the average rate of the charge on the cost of fuel of $ 0.10 per kWh for the third quarter of 2020. CUC passes all fuel costs on to consumers with a two-month lag without mark-up.
The Company continues to work on increasing grid-connected renewable energies in accordance with its integrated resource plan which recommends favoring natural gas as a substitute for diesel fuel and increasing the use of renewable energies by up to 60%. electricity needs by 2037. The company is actively engaged with the Bureau of Utilities Regulation and Competition on this matter as well as a number of related projects in its efforts to reduce the impact of the increase fuel costs on customer bills.
Renewable energy purchases for the third quarter of 2021 totaled $ 1.6 million, an increase of $ 0.2 million compared to renewable energy purchases of $ 1.4 million for the third quarter of 2020. Renewable energy comes from the Customer Owned Renewable Energy program and BMR Energy Limited and the costs are passed on to consumers with a two-month lag without mark-up.
Renewable energy purchases for the nine months ended September 30, 2021 totaled $ 4.4 million, an increase of $ 0.5 million compared to $ 3.9 million for the nine months ended September 30, 2020.
President and CEO, Mr. Richard hew, says: “In the third quarter of 2021, the company successfully responded to the impact of Tropical Storm Grace and achieved its safety and reliability goals while continuing to navigate the uncertainty and myriad of challenges that the COVID-19 pandemic presented. The company continues to monitor the Cayman Islands government’s plans to reopen borders to the tourism industry and prepare for any related increases in demand for electricity, including mitigating the recently increased risks in the chain. global supply. “
Reliable service to our customers is a key objective for our business and is essential to the continued growth of Grand Cayman. The average CUC system availability index was 99.96% in the third quarter of 2021.
CUC Third Quarter Results and Related Management’s Discussion and Analysis (“MD&A”) for the period ended September 30e, 2021 are attached to this press release and incorporated by reference and can be accessed through the link to this press release.
The MD&A section of this report contains a discussion of CUC’s third quarter 2021 unaudited results on Cayman Islands the economy, liquidity and capital resources, capital expenditures and business risks that the Company faces. The third quarter press release and MD&A can be viewed at www.cuc-cayman.com (Investor relations / Press releases) and to www.sedar.com.
CUC provides electricity to Grand Cayman, Cayman Islands, under an electricity production license expiring in 2039 and an exclusive electricity transmission and distribution license expiring in 2028. More information is available at www.cuc-cayman.com.
Certain statements in the MD&A, other than statements of historical fact, are forward-looking statements regarding anticipated future events, results, circumstances, performance or expectations regarding the Company and its operations, including its strategy and operation. financial performance and situation.
Forward-looking statements include statements that are predictive in nature, depend on future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, ” intention “,” targets “,” projects “,” forecasts “,” schedules “, or their negative versions 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 on the beliefs, estimates and opinions of management, and are subject to inherent risks and uncertainties regarding future expectations generally, which may cause actual results to differ from actual results. plans, objectives and estimates. Some of the important risks and uncertainties that could affect forward-looking statements are described in management report in the section entitled “Business Risks” and include, without limitation, operational, general economic, market and commercial conditions, regulatory developments and weather conditions. CUC cautions readers that actual results may differ materially from those expected if certain risks or uncertainties materialize, or if the underlying assumptions turn out to be incorrect. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans for the future. Readers are cautioned that this information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Caribbean Utilities Company, Ltd.
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