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Press release from CNW Group

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

Thursday, November 03, 2011

CUC Announces Third Quarter Results for the Period Ended September 30, 201121:56 EDT Thursday, November 03, 2011Caribbean 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.pdfThe 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.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.pdfFor further information: Letitia Lawrence Vice President Finance and Chief Financial Officer Telephone: (345) 914-1124 E-mail: llawrence@cuc.ky