Price hike and customers boost CUC’s sales

| 02/03/2018 | 45 Comments

(CNS): Caribbean Utilities Company has published its annual audited results for 2017 and the figures reveal that the power firm’s boost in sales came from an increase in customer numbers and last year’s price increase imposed on customers. New clients increased sales by 2% but a 1.6% base rate increase swelled the monopoly firm’s coffers. Electricity sales revenue increased by $1.6 million for the 2017 fiscal year to $81.8 million when compared to $80.2 million for 2016, the firm stated.

CUC’s president and CEO Richard Hew said 2017 was another positive year for the firm and it weathered the cooler days.

“Although sales were lower than forecasted mainly in the fourth quarter due to wet and cool
weather, the Company was still able to absorb the first full year of depreciation and finance charges
related to the 2016 Generation Expansion Project and post reasonably strong financial results,” Hew said. “Through the efforts of all of our employees, the Company continued to adequately control its expenses while at the same time providing a safe, reliable and efficient service to our customers across Grand Cayman.”

He also stated that the company achieved the Investors in People Gold standard, completed a
Company record of 979 days without a lost time injury and was able to complete the public
consultations for the Integrated Resource Plan study which will give direction for future energy generation plans for Grand Cayman. The study is now with the regulator awaiting approval, Hew explained.

See the full annual report on the CUC website

Category: Business

Comments (45)

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  1. Anonymous says:

    Typical private sector mentality!! Rob us every chance they get.

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  2. Anonymous says:

    Increasing profits while consumers try their best to cut down there cuc bills. More people are using energy efficient led bulbs, and other efficent appliances to lower consumption, there fore monthly bills yet cuc records increasing profits! Why do we the consumer pay more for energy efficent appliances to save money and then the government allows price increases to the sole energy provider that allows them to continually increase their profits? What’s the point of saving energy if the price per kW keeps going up in order to ensure the electric company maintains a base line of profit and profits keep growing.

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    • Anonymous says:

      That’s why we need to open up the market make these guys have to compete in a world where customers have choices between higher standards, better service and lower prices.

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    • Anonymous says:

      Fee free to buy shares … see cup.u on tse or on the customer share purchase plan. Yo may also note that the dividend rate has not changed in a decade. Rate increases reflect inflation.

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    • West bay Premier says:

      The study is with the regulator waiting aproval, Hew explainedd . Look out for another $$ raise in your ulity bills .

    • Anonymous says:

      my entire 1100 sq foot house is all energy saver light bulbs. my tv is LED. Gas stove and gas on demand hot water heater. I have installed a nest on my air con so it only turns on when i get home from work. Yet I still pay 200 + CI for electricity. Could my fridge and air con be consuming that much?!

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      • Anonymous says:

        Yes.

      • Anonymous says:

        Is the house insulated and kind of air tight?

      • Anonymous says:

        CI$200? you is lucky mon!

      • Anonymous says:

        I agree. Check you insulation & what temp do you run your a.c? I only pay $120 for my 1250 square foot condo with same appliances as you.
        Day time temp 80f and nighttime 76f when I’m home otherwise goes to 82f.

      • Anonymous says:

        Deffo the fridge and AC.

      • West bay Premier says:

        Anonymous 9:19 am , did you read Anonymous 2:28pm comment. That person saving might be because their A/C is never really turned off but running at minimal economic temperature that doesn’t take alot of energy to put it back to desired temperature . But how you’re doing it takes twice as much energy .

  3. Anonymous says:

    Glad to know I could contribute – albeit unwillingly – to Mr. Imperato’s bottom line and to his latest project – the high-rise complex slated to destroy the ambience of the Rum Point area!! Almost forgot, helped pay for hangar fees for his jet!

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    • Anonymous says:

      Never been a better time to go solar.

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      • Anonymous says:

        Any customer of CUC could be a shareholder: they have a plan whereby you can buy shares on a monthly basis called the “Customer Share Purchase Plan”.Had you done that maybe you would not be complaining so much.

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    • Anonymous says:

      All true but IMO rum point already changed for the worse with that horrible car park.

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      • Anonymous says:

        That is the crappiest car park I’ve ever been lost in. Turn it into putt-putt golf, try to charge less than CI $50.00 for 9 mini holes, and I MIGHT come back. Sheesh!

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    • Wild says:

      100% agreed with destroying the ambience of Rum Point. Sadly already rubber stamped by CPA despite removing iron shore without approval. Yet, I need planning approval to clear my land to build my home. How come the money people always get their way and the poor man continues to struggle.

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    • Anonymous says:

      Keep in mind he bought the majority shares when CUC was going bankrupt back in the early 70’s.

      Cayman Government agreed to a long term deal that would prohibit any increase rates for 20+ years. After that, increase in fees would and rise.

      Dont blame JI. Blame the government.

      If you are in business, you are in it profit/make money.

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      • Anonymous says:

        And if you are here on earth you are here to make more money and have more stuff than the next person.

  4. Tut alors!. says:

    979 days without a lost time injury but how many power cuts in that period?.

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  5. E. Nygma says:

    23.8 million dollars in profits, in 2017
    $13.20 per share with .17 in annualized dividends per share
    Not the worst place to put your money, if you are smart about it
    Their stock has been steadily rising since the financial crisis (which was a great time to buy if you had the money)
    It is a waiting game though and nothing compared to the hundreds (if not thousands we hand them every year)

    Buyers Beware hurricane season is almost upon us, we might not be so lucky this year (again would be a good time to buy assuming you have the money)

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    • Anonymous says:

      Good news E. Nygma, you are about to like the stock even more. The .17 is a quarterly dividend, .68 annualized.

    • Anonymous says:

      Can you put that in English? How much did their stock go up in 2017? YTD?

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    • West bay Premier says:

      @ E Nygma , I would hate for you to be my financial advisor. If hurricane season is coming, then it would be possible for lots of damages and lots of repairs , which is going make your investment worth less . I say buy when those shares becomes worthless . what are you smoking, I’ll buy shares in that .

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      • Anonymous says:

        Agreed. It’s a crappy investment

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      • E. Nygma says:

        I would hate to ask your for advice (financial or otherwise) seeing as you have a reputation for not reading comments or articles, misunderstanding or mistinterpreting constantly, making wild assumptions and consipiracies and then writing the most thoughtless of comments to finish it all off
        Don’t worry about my finanical situation though, proably alot better off than you are

    • Anonymous says:

      Certainly not the best place either.

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