CUC weathers COVID storm
(CNS): Grand Cayman’s power provider has seen only a small decline in its profits as a result of the COVID-19 pandemic. The company’s third quarter results show that despite a decline in the number of people now living in the Cayman Islands, the company’s customer base grew by 641 compared to September 2019 and CUC saw only a 1 2% decline in sales over the same period last year. Earnings for the last three months match those in 2019, leaving the company in stable position.
“Although the duration and final impact of the COVID-19 pandemic on the Cayman Islands’ economy and CUC remain uncertain, Q3 2020 represented a relatively stable quarter for the Company in the circumstances,” said CUC President and CEO Richard Hew in a release about the results.
Net earnings for Q3 2020 totalled $10.4 million, comparable to $10.4 million for the three months ending 30 September, while net earnings for the nine months ending 30 September were $18.7 million, a decrease of $4.2 million when compared to net earnings of $22.9 million for the same nine months last year, but this was due to higher depreciation and finance charges rather than any serious impact from the COVID lockdown or the economic issues related to it.
“During the quarter, the Company continued to deliver on its three objectives of health and safety of its employees and the public, reliable electricity service, financial stability and being a good corporate citizen. Health and safety and reliability performance indicators were as planned and the Company was pleased to reach agreement with its regulator to defer the impact of the rate adjustments on customer bills until 2021.”
Hew said that during this last quarter CUC had submitted a utility scale solar project to the regulator.
CUC also successfully completed a rights offering this quarter, which closed on 26 October, after which CUC issued 3,359,362 Class A Ordinary Shares at a price of US$14.24 per share for aggregate gross proceeds of US$47,837,314.88.
CUC said it intends to use the net proceeds of the offering to refinance existing debt and for general corporate purposes.
So many negative people. Accountants are independent, they cant cook the books. Well done CUC! Carry on with the efficient management and ignore the freeloaders, As a poor man I am proud to be a shareholder. I will buy some more instead of going to the bar and chasing wild women.
But they still received approval for a 7% increase? No sympathy for the customers – just for the shareholders.
And the major shareholders are practically every member of our Legislature.
I don’t see or hear of anyone preventing you from becoming a shareholder. Please grow up and begin investing so that you can leave something for your grandchildren. I am happy that the MLA’s are invested. What a great vote of confidence.
8:06 am, why don’t you buy some share and stop whining
My hard bleeds for these cranks. We’re all forced to live at home 24/7, with extra loads on a/c, computers, washers, driers, cookers etc being used. Of course these sharks will still make a profit. Oil was negative a barrel back in March/April and they were still charging us.
Boho, they have just increased something on our bills to make up for it. And off reg allows it.
OfReg Needs rebranding – Office of Real Electrical Gangsta$
Customer base being empty condo units requiring more power generation but not being used thus profit loss to CUC which results in rate increase to the rest of us….same story repeats as development continues….
Well make sure our CUC bills don’t increase because there is no excuse!
Hard to believe with the Hotels empty
Makes you wonder if everything you’ve ever been told is true…
Certain things still need to be running and maintained. You can’t just lock up a place all of the time. It will deteriorate. Electricity is still running but maybe not as high. Workers are at home burning more air conditioner.