CARIBBEAN UTILITIES COMPANY, LTD. (CUC) ANNOUNCES 2023 YEAR END RESULTS AND STRATEGIC MILESTONES
Highlights for 2023 were as follows:
- Net Earnings increased by 17% to
$38.7 million . - 8% in kilowatt-hour ("kWh") sales.
- 1% increase in total customers.
- 9% increase in system peak demand to 124.1 megawatts ("MW").
- Capital expenditures of
$97.6 million included projects to improve grid resiliency, generation asset upgrades, and construction of infrastructure to transition to lower carbon energy. - Progress made on installation of the 20 MW Battery Energy Storage System.
- Renewable Energy supply contracts reached 20.5MW in capacity for customer programmes. The 5MW solar farm is in addition to this capacity.
- Completion of Request for Qualification for
Liquefied Natural Gas ("LNG") supply procurement. -
Lifecycle upgrades for 68MW generation are in progress with expected completion of 2 of the units (32 MW) in 2024. - Roll out of new Electric Vehicle ("EV") fleet and execution of EV charging station programme.
- System Average Interruption Duration Index ("SAIDI") is the tool used to measure the amount of outage time. In 2023, the Company achieved an average annual outage duration time of 1.7 hours per customer which surpasses
the United States average 2022 results.
- Completion of phase 1 of Land Acquisition Programme to support future Renewable Energy facilities.
- Investors in People Gold certification for outstanding achievements in employee support.
- Active participation in the National Energy Policy revision through representation on the advisory council.
- Commitment to community development showcased through partnerships and support programmes.
The Company continues to deliver reliable and safe electricity service to our customers. The major projects that are aimed at reducing costs and carbon emissions, namely, the lifecycle upgrades of five engines (68MW capacity) extending their useful life, improving fuel efficiency and preparing them to operate on natural gas as well as the implementation of the battery energy storage systems, have progressed well and we look forward to the completion of these projects. During 2023 there was a new electricity peak demand record of 124.1 MW set on
Net earnings for Fiscal 2023 were
Sales in kWh for Fiscal 2023 were 727.0 million kWh which is an increase of 52.9 million kWh or 8% compared to Fiscal 2022. The increase in customer consumption and the rise in temperatures had an impact on this increase. The average temperature for Fiscal 2023 was 84.0 degrees Fahrenheit compared to 82.9 degrees Fahrenheit in Fiscal 2022. Total customers as of
Fuel Factor consists of charges from diesel fuel and lubricating oil costs, which are passed through to consumers on a two-month lag basis with no mark-up. The average Fuel Cost Charge rate charged to consumers for Fiscal 2023 was
"Strong earnings continue to place the Company in a position to support appropriate levels of capital investment in infrastructure projects that ensure that we continue to deliver safe, reliable, least cost and sustainable energy to the people of
In 2023, the Company maintained its Investors In People Gold Level Accreditation. CUC has a primary goal to recruit, retain and develop the most talented individuals within the utility industry. The Company aims to be an organization that employees choose to work for and wants to consistently demonstrate commitment to the team through active participation in our community and training programmes. This is the Company's third consecutive gold certification and underscores the Company's commitment to creating a positive work environment that fosters growth, innovation, and excellence by continuously investing in our people.
The Company made good progress on preparing
While the renewable energy market is being developed, the Company continues to make meaningful strides with its contribution to the National Energy Policy's carbon reduction goals. In 2023, the Company rolled out the
Considerable progress has been made on the Battery Energy Storage project. At the end of
The Request for Qualification ("RFQ") for the supply of liquefied natural gas was completed in 2023, in line with the National Energy Policy and the Company's Integrated Resource Plan. CUC is committed to increasing the use of cleaner energy, reducing energy costs and to reducing greenhouse gas emissions over the long term. This Battery Energy Storage System and the conversion of the engines to utilise natural gas will assist with these primary goals.
Capital Expenditures for Fiscal 2023 were
- Distribution system extension and upgrades
- Generation replacements
-
Lifecycle upgrades - Alternate energy technologies
- Installation of utility scale battery storage, which is ongoing,
- Facility and auxiliary asset replacement costs, and other resiliency projects
The above capital projects will enhance the reliability and safe delivery of electricity service to the customers of
CUC's Annual 2023 results and related Management's Discussion and Analysis ("MD&A") are attached to this release and incorporated by reference. The MD&A section of this report contains a discussion of CUC's 2023 results for the twelve-month period ended
The principal activity of the Company is to generate, transmit and distribute electricity in its licence area of
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 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.
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