Company Announcements

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, Aug. 5, 2025 /CNW/ - Caribbean Utilities Company, Ltd. ("CUC" or the "Company") announced its consolidated unaudited results for the three and six months ended June 30, 2025 (all figures stated in United States Dollars).   

Highlights & Strategic Milestones were as follows:  

Customer Commitment

• Lower Bills, Smarter Energy: So far this year, customers are paying less—thanks to efficiency upgrades from CUC's lifecycle upgrade project, falling fuel prices, and a reduced Licence & Regulatory Rate. While a 4% base rate adjustment took effect on June 1, 2025, overall costs are still down.
• Q2 Wins: Efficiency = Savings: In the second quarter of 2025, strategic system upgrades cut thermal spinning reserve needs and boosted fuel efficiency by 7%. That means less fuel burned—and an estimated $2 million savings in fuel cost passed on to customers.

Shareholder Returns

• Approved 3% increase in the quarterly dividend from $0.185 to $0.190 per Class A ordinary share in May 2025.

Financial Growth

• Net earnings for Q2 2025 were $11.5 million or $0.27 per Class A ordinary share, a $1.4 million increase from net earnings of $10.1 million for the three months ending June 30, 2024 ("Q2 2024").
• 1% or 2.5 million kilowatt-hours ("kWh") increase in sales compared to Q2 2024.
• 2% increase in customers in Q2 2025 compared to Q2 2024.
• Capital expenditures totalled $24.6 million during the quarter, comparable to Q2 2024.

"CUC continues to deliver investments that are making a significant impact for our customers. The realized overall annual cost savings for our customers through fuel cost savings via efficiency measures and price reductions demonstrate our commitment to investing in projects that are driving affordability for our customers," said President and CEO, Mr. Richard Hew.

Net Earnings and Sales Revenues 

Electricity sales revenues increased by $1.3 million for Q2 2025 to $32.6 million when compared to electricity sales revenues of $31.3 million for Q2 2024. Net earnings for Q2 2025 were $11.5 million, a $1.4 million increase from net earnings of $10.1 million for Q2 2024. This increase was primarily driven by higher operating income, which resulted from a 1% kWh sales growth, base rate increases of 4% and 3.2% effective June 1, 2025, and June 1, 2024, respectively, Z-Factor revenues from approved projects, and a decrease in power generation and maintenance costs. These factors were partially offset by increased depreciation, transmission and distribution costs, and general and administrative expenses. 

After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for Q2 2025 were $11.3 million, or $0.27 per Class A Ordinary Share, as compared to $10.0 million, or $0.26 per Class A Ordinary Share, for Q2 2024.  

Key Updates

In June 2025, Moody's reaffirmed the Cayman Islands' Aa3 bond rating and stable outlook, citing strong financial management, low debt, and healthy reserves. Continued growth in tourism, fuelled by new hotels and major developments, is expected to drive up electricity demand island-wide.

Throughout the first half of the year, the Company has upheld its commitment to creating tangible value for customers in Grand Cayman by advancing strategic infrastructure investments. Fuel factor rates on Grand Cayman have stayed below 18 cents per kWh year-to-date, helping to keep fuel costs stable on customer bills. This consistency, along with a 7% boost in fuel efficiency during Q2 2025, attributed to the ongoing battery energy storage system implementation and life cycle upgrades to four of five engines, has further strengthened cost savings. Combined with falling fuel prices and operational efficiencies as mentioned above, these efforts have delivered meaningful savings for customers.

In July 2025, the Utility Regulation and Competition Office ("URCO") released its request for proposal ("RFP") for 22.5 megawatts ("MW") of Dispatchable Photovoltaic ("DPV") power to be delivered via a power plant. The issuance of this RFP marks a historic step for Grand Cayman to transition to a cleaner and more affordable energy future.

As the second half of the year begins, the Company reaffirms its commitment to delivering safe, reliable electricity. CUC will actively participate in the DPV RFP, an initiative positioned to generate further cost-saving benefits for customers.

On August 1, 2025, the Company and URCO agreed on the urgent need to address the anticipated generating capacity requirements for Grand Cayman. As part of this initiative, CUC has voluntarily withdrawn its Certificate of Need ("CON") originally submitted on June 7, 2024.  Concurrently, URCO has rescinded its Final Determination issued on April 24, 2025. CUC will submit a new CON to URCO by September 5, 2025. This updated submission will define the generation resource requirements necessary to support Grand Cayman's projected energy demand from 2027 onward. CUC and URCO have also agreed that Condition 31 of CUC's Transmission and Distribution Licence, does not preclude the provision of firm capacity generation from renewable sources. Both parties have acknowledged that hybrid solar photovoltaic systems integrated with battery storage may qualify as firm capacity, subject to Effective Load Carrying Capacity ("ELCC") analysis.  In addition, both parties are actively engaged in discussions to modernise the Transmission and Distribution Licence to align with evolving regulatory, infrastructure, and operational needs. 

CUC's Second Quarter 2025 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 unaudited Second Quarter 2025 results, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and the Second Quarter 2025 MD&A can be accessed at www.cuc-cayman.com (Investor Relations/Press Releases) and at www.sedarplus.ca. 

The principal activity of the Company is to generate, transmit and distribute electricity in its licence area of Grand Cayman, Cayman Islands, pursuant to a 20-year Transmission & Distribution ("T&D") Licence and a 25-year non-exclusive Generation Licence (the "Generation License" and together with the T&D Licence, the "Licences") granted by the Cayman Islands Government (the "Government", "CIG"). The T&D Licence, which expires in April 2028, contains provisions for an automatic 20-year renewal and the Company has reasonable expectation of renewal until April 2048. The Generation Licence expires in November 2039. 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.   

SOURCE Caribbean Utilities Company, Ltd.