Even though CUC’s latest earnings results for the first quarter of this year were down slightly on the same quarter in 2019, they did not as yet reflect the full impact of the economic fallout caused by the Covid-19 corona virus.
In a release issued by the company, CUC (Caribbean Utilities Company, Ltd) announced a net earnings decrease of US$0.6 million, down from US$4.5 million as at the end of the first quarter 2019, to US$3.9 million as at the end of the same period this year, as published in its unaudited results.
The reason for the decrease was attributed in the main to higher depreciation, transmission and distribution and finance charges, while higher electricity sales and lower general and administration costs helped to soften the earnings decrease, the company said.
But CUC management said that as the lockdown only began at the end of March, the true impact of how closures of businesses and the airport had affected the local economy (and, in turn, CUC’s profits) would really only be seen in the company’s results later in the year.
CUC President and CEO, Richard Hew, furthered: “In the coming months we will be better able to assess the impact the pandemic has on the economy of the Cayman Islands and CUC’s operational and financial performance,” he explained, adding, “I would like to record my appreciation and thanks for the manner in which our employees quickly transitioned to working from home, or adjusted their work methods to continue serving on the frontline, while preserving their health and safety and that of their coworkers and the public. Health and safety remain our top priority while we strive to provide excellence in customer service and manage our costs to maintain our long-term financial strength and stability.”
After the adjustment for dividends on the preference shares of the Company, earnings on Class A Ordinary Shares for Q1 2020 were US$3.8 million or US$0.11 per Class A Ordinary Share, compared to earnings on Class A Ordinary Shares of US$4.4 million, or US$0.13 per Class A Ordinary Share for Q1 2019, CUC outlined.
CUC said it sold more electricity during the first quarter of 2020 when compared to last year, with sales revenues at US$21.2 million for Q1 2020, an increase of US$0.9 million when compared to electricity sales revenues of US$20.3 million for Q1 2019. This was due to a 4 per cent increase in kWh sales. The first quarter of 2020 also saw an increase in the company’s customer base, with customers totaling 30,734 as at the end of March 2020, an increase of 789 customers, or 3 per cent when compared to 29,945 customers as at 31st March, 2019.
You can find further information at www.cuc-cayman.com.