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Higher temperatures boost CUC profits

Business 07 Aug, 2019 Follow News

Higher temperatures boost CUC profits

Cayman’s electricity provider CUC announced last week that its profits for the second quarter of 2019 were up on the same period last year partially due to an increase in temperature for the islands during May and June of this year. This resulted in more people using their A/C, one of the biggest users of electricity in the home and also commercially.

 

Accumulating an operating income of $8.2 million for the second quarter of 2019, CUC saw its operating income rise a half a million dollars in the three months ending 30th June over the same three-month period last year. The increase, they said, was mainly due to higher electricity sales revenues which was partially offset by higher depreciation expenses.

 

Net earnings for the second quarter totaled $7.9 million, an increase of $0.9 million from $7.0 million for the second quarter of 2018, and sales increased to a total of 173.0 million kWh, an increase of 13.3 million kWh in comparison to 159.7 million kilowatt hours for the second quarter of 2018. CUC said this increase was driven by an increase in the average residential and commercial kWh consumption for the second quarter of this year when compared to the same period last year.

 

The average monthly temperature for April, May and June this year was 84 degrees Fahrenheit as compared to an average monthly temperature of 83 degrees for those months in 2018. Warmer temperatures increased air conditioning load which positively impacted the Company’s sales, they said.

 

CUC also gained more customers during the second quarter of 2019 at 30,100, when compared to 2018. This figure is an increase of 723 customers, or 2 per cent, compared to 29,377 customers as at 30 June, 2018.

 

They also stated that the system experienced a new peak this year, when, on 17 June, demand reached a height of 113.3 megawatts. Prior years’ peak demand was 105.6 MW in 2017 and 103.6 MW in 2018.

 

President and CEO, Mr. Richard Hew, said: “Electricity sales have been robust over the first half of the year, driven by growth in customer numbers, a strong economy and above normal temperatures, particularly in May and June. The Company continues to invest in the infrastructure necessary to meet the growing customer demand and to serve reliably. Refurbishments to the Rum Point and Bodden Town substations have been completed and the new Seven Mile Beach substation construction is progressing well towards completion later this year. Construction of the new Prospect substation has also commenced. The Company continues to focus its attention on improving the level of service it offers to its customer by investing in infrastructure, technology and its people.”


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