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Press release from CNW Group

CUC Announces First Quarter Results for the Period Ended March 31st, 2012

Wednesday, May 02, 2012

CUC Announces First Quarter Results for the Period Ended March 31st, 201221:37 EDT Wednesday, May 02, 2012Caribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange.GRAND CAYMAN, Cayman Islands, May 2, 2012 /CNW/ - Caribbean Utilities Company, Ltd. (TSX:CUP.U) ("CUC" or "the Company") announced today its unaudited results for the First Quarter ended March 31st, 2012 (all figures in United States dollars).Net earnings for the three months ended March 31, 2012 ("First Quarter 2012") were $1.9 million, a decrease of $1.2 million, or 39%, when compared to $3.1 million for the three months ended March 31, 2011 ("First Quarter 2011"). A 1% increase in kWh sales and lower maintenance costs were offset by an increase in general and administration, financing and depreciation costs for the First Quarter 2012 when compared to the First Quarter 2011.President and CEO, Mr. Richard Hew, says, "The first quarter is normally our weakest quarter of the year in terms of sales and earnings due to cooler weather.  Earnings for the First Quarter 2012 were further impacted by one-time restructuring costs but overall were in line with our expectations."Electricity sales revenues increased $0.1 million, or 1%, to $15.9 million for the First Quarter 2012, from $15.8 million for the First Quarter 2011.  Electricity sales revenues increased as a result of a 1% kWh sales increase and 2% customer number growth experienced quarter-over-quarter.During the first three months of 2012, the Company completed the review of proposals received in response to its request for Expression of Interest and Preliminary Proposal for the financing, construction, ownership and operation of up to 13 MW of renewable energy generation facilities.  Discussions are ongoing with the prospective alternative energy providers.Also, during the period under review, DataLink, Ltd ("DataLink"), the wholly owned subsidiary of CUC, received its licence from the Information and Communications Technology Authority ("ICTA") which permits DataLink to provide fibre optic infrastructure and other information and communication technology (ICT) services to the ICT industry.Mr. Hew added, "We are excited about the future potential of our subsidiary, DataLink, Ltd. now that we have received its licence to operate as an information and communications technology service provider."CUC's base rates (excluding fuel costs) have not changed since 2009 and remain lower than they were in 2002.  In March 2012 the Company submitted the calculation of a base rate increase of 0.7% to the Electricity Regulatory Authority for verification which would be effective for bills rendered from June 2012, as prescribed by the Rate Cap and Adjustment Mechanism of CUC's Transmission & Distribution Licence.CUC's First Quarter results and related Management's Discussion and Analysis ("MD&A") for the period ended March 31st  2012 are attached to this release and incorporated by reference and can be accessed by clicking the link below at the end of this release.The MD&A section of this report contains a discussion of CUC's unaudited 2012 First Quarter results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and First 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 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 available at: http://stream1.newswire.ca/media/2012/05/02/20120502_C3663_DOC_EN_13086.pdfFor further information: Letitia Lawrence Vice President Finance and Chief Financial Officer Phone: (345) 914-1124 E-Mail: llawrence@cuc.ky