CUC customers grew during pandemic
(CNS): Despite the departure of thousands of people during 2020 as a result of the COVID19 pandemic, Caribbean Utilities Company’s customers grew by 2%. While the company’s takings fell in 2020 because of the closure of office buildings during lockdown and tourism, in general the company remained largely unscathed by the health crisis. CUC still made a profit as residential customers helped counter the loss of commercial sales.
Even though there was a mass exodus of people, offices were closed for several months and the tourism sector essentially boarded up for the whole year, CUC managed to grow its number of customers by 756 compared to the year before.
Inexplicably, CUC ended 2020 with 31,293 compared to 30,537 customers at the end of 2019.
In a press release announcing the 2020 annual results, President and CEO Richard Hew noted how well the company had fared, given the circumstances of the health crisis and the fact that Cayman’s economy proved very resilient through the pandemic.
“The impact to CUC was mainly through the reduction in electricity sales to large office buildings and hotels as well as the thousands of tourism workers who departed Grand Cayman,” he said. “Company operations were also impacted by the curtailment of travel by overseas specialists required to conduct critical maintenance and repairs. Despite these setbacks, the Company improved its customer satisfaction and reliability results over 2019, completed a Rights Offering to pay down debt, pared costs and capital expenditures to maintain financial stability and delivered reasonable earnings in the circumstances.”
CUC also submitted a proposal for a utility scale solar plus battery storage project to the regulator for consideration.
Operating income for 2020 totalled $28.9 million, a $0.6 million decrease from 2019 attributable to a 3.5% decrease in kWh sales and higher depreciation costs. But this was partially offset by 0.9% and 6.6% base rate increases effective 1 June 2019 and 1 June 2020. Net earnings were $26.1 million, a $3 million decrease on $29.1 million in 2019 because of lower operating income, higher finance charges and lower other income.
CUC needs to invest heavily in battery storage and backup transmission conduits to deal with the destruction caused by climate extremes. (See Texas) Extreme low temperatures in over a hundred years caused unprecedented demand which crashed the electrical grid! Next up will be extreme hot temperatures in the summer and the grid will collapse again due to unprecedented demand. Climate change is no hoax. I would prefer to pay a little extra for stable power than to suffer for months after a hurricane in unbearable heat and humidity.
Well it is good that CUC has done well, yet they increase the cost of electricity, while so many people are still without a job!
No compassion – all about making money.
It is a public company and as a shareholder, I support the increase!
The note in the article about the increase in customers is interesting.
Can WORC or CBC tell the public how many people are in Cayman at any given moment?
Customers are not people, they are properties, if you property is vacant you are not going to turn of the electricity because of mold etc that would build up. Given the new property released over the last two months, i don’t think its surprising, YoY sales by Kwh are down as you would expect.
WORC and CBC cannot, because they do not know. Neither does the ESO. It is a disgusting failure of even basic standards of governance and accountability.
Buy CUC shares, very good investment, don’t drink too much alcohol. Just buy CUC shares. You will thank yourself in years to come, take care.
In the past 5 years it has underperformed the S&P 500 by 60%
Bet it has outperformed the Chamber pension scheme 😉
Real estate a good buy too. Never a better time to buy.
You saw anyoney at our airports screaming to go home?? Who the hell would leave this??? No one left.
My bill still gone up when less used!
Nonsense. Check your consumption, something in your house is using power without your being aware of it.
Good job great leadership and management. Now impress us by bringing on the batteries to stabilize the system and store the solar power for backup! Im buying more shares.
I think we need to get Government on board! CUC seems ready to go but OfReg dragging their feet……
Good! I guess my dividends are safe then!
Exodus of thousands is a myth. They’re all still here and bringing in more every day.
There has not been a mass exodus overall. Departing tourism workers should be offset against students, financial services and construction workers, and parents and other dependents coming to the safety of the Cayman Bubble. The population has been growing since summer.
Bastards!
It’s a wonder they grew at all, most of their customers can barely afford to buy staple groceries these days let alone keep the lights on.
So many new houses were almost completed right at lockdown so…
And new apartments too…especially in the George Town area. Who the hell is going to be living in all these new apartments which apparently have all been sold? And the developers are on the next phase in a lot of these developments which will be sold out too no doubt. And how will the roads around George Town cope with all these vehicles disgorging onto, for example, the Hurley’s roundabout or Crewe Road?
Many buy as investment, some won’t ever be lived in thankfully.