CUC earnings increased by 34% this summer
(CNS): An increase in the number of customers and record-breaking heat pushed CUC’s earnings up by $3.5 million over the third quarter of this year compared to the same period in 2022. According to its Q3 report, Grand Cayman’s power provider earned almost $14 million over the summer after a 2% increase in customers and a new record peak load of 124MW in July, when the average monthly temperature hit a historic high of 87.2°F compared to 85.4°F last year.
“A growing economy and record high temperatures drove a significant increase in consumer demand for electricity,” President and CEO Richard Hew said.
The total number of customers as of September 30 was 33,503, an increase of 638. This and the rising temperatures resulted in another significant profit for shareholders. However, Hew also said that CUC was making progress with major projects such as the battery energy storage system and natural gas conversion, which “will lower our carbon emissions and stabilise energy costs for our customers”.
CUC opened a bid in August for submissions from prospective natural gas suppliers as an alternative fuel to generate firm capacity. The power supplier is upgrading five generating units “for the dual-fuel conversion”, totalling 68 MW of capacity, to enable them to use gas.
“This project aims to meet base load and capacity needs while the Company continues to pursue utility-scale renewable energy projects,” CUC stated in the report.
“We look forward to participating in any utility-scale renewable energy bid conducted by the Utility Regulation and Competition Office (OfReg), which we believe will bring energy cost reductions for consumers,” Hew said.
See the full release here.
- Fascinated
- Happy
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- Angry
- Bored
- Afraid
Then. . . when we get hit by a Hurricare, we see a “Hurricane Recovery Charge” on our invoice!
yup…we bought and paid for their distribution network after “Ivan” with that levy on our monthly bills…..but that is all for gotten about now.
All because they did not fund for the enivatble catastrophe loss or buy adequate insurance…
+ why would they? when it would reduce their profits and dividends.
+ why should they? when they can get CIG to approve a recovery charge/levy, after the fact, that we, the residents, pay for
+ why can they? because we, the voters, keep electing the wrong type of “MP”s (I use that designation VERY loosley….
People vote for this. So Caymanians shouldn’t be complaining about CUC. We came here and found this dinosaur had been around for 25+ yrs unchallenged free to gorge on the populous. For such a small island the folks have no idea about accountability. Cant even organize a decent revolt on a clearly oppressive company. How about everybody stop paying their electric bills until something else is agreed upon.
The article does not say that CUC made a 34% profit, although it is easy to see why people are confused. What was the actual profit % or the ROI?
I genuinely don’t know what to do anymore. I work a decent paying job, do my best not to take on debt, I buy stuff second hand, I maintain my old truck rather than take out a massive loan to buy a new one, I take 1 shower a day and conserve water, shop sales for groceries etc. but its just not enough. Every year my margins get thinner and every year I read a story that some local monopoly or duopoly is recording record profits. Iv spent the last year trying to make my place as energy efficient as possible, LED bulbs, power strips for everything so I can turn them off when not in use, hell I even shut all the breakers off but the fridge, the cost of living here rises faster than I can reduce my expenses.
What am I supposed to do? I don’t know what else I can cut back on, I’m considering dumpster diving for some used tires because I cant afford to pay my CUC bill and change out my bald and shedding truck tires. Someone please tell me, what am I supposed to do? I cant afford to keep the lights on let alone run my AC and CUC will be raising the rates again next year.
10:45 am, Stop going to Bars and night clubs.
Seems fair
Thanks CUC I can’t imagine what we would do without those old rusty diesel turbines you have down there
What between the bunking oil and the trees you use to move money we would be so lost 😡
#NetMeteringNow
#CoreProgrammeRip-off
Smash the monopoly – Rememeber telephone and TV before competition was intriducted on islands in the early 2000s!?
Seriously – Net metering NOW – Higher temperatures track with greater amounts of sunshine – it would be a natural hedge against higher temps if residents were allowed a PROPER/1st World SOLAR PROGRAMME and allowed to spin back the electricity meter like they do in EVERY other advanced economy….
Its a COMPLETE joke that we are prohibited from maximising the sun’s free energy on islands such as these…..
Whilst I agree with your sentiment, higher temps don’t “track with” more sunshine. Although sunny days are hotter, hotter days are not necessarily sunnier, with the heat causing greater cloud cover. Additionally solar panels are actually less efficient the higher the air temperature.
What many people don’t realise is the service and continuity of power we get from CUC is superior to any other Utility Company in the West Indies. It seems to me that they are also “handcuffed” by Government’s Duty on fuel. It has been a record breaking year with historic temperatures recorded, lets hope for a cooler winter season.
This is a silly argument. All of that reliability is accounted for within their operating costs. They are a great company for what they provide. They seemingly treat their workers well, and employ a large number of Caymanians as well, which are all awesome, positive points in their favor.
What people are concerned about are their effective monopoly (no matter how many times they pay marl road to put them on camera trying to convince us they don’t “technically” have one), their enormous government-guaranteed profit margins, and their chokehold on the solar market.
The fuel price and duty are simply passed on to us consumers; the price of either make no difference to CUC. It is a passthrough cost. The service is excellent I agree but their margins are now obscene for a utility.
Please explain how fuel duty “handcuffs” CUC, whatever you mean by that. They pass on fuel price and duty directly to us.
It means they are totally grateful for their employment with CUC and the dividends their shares offer. They will never speak in negative light against them. You can tell who the employees are by the comments. It’s like there is a boot camp for PR when you work there. The employees are a cult protecting their master.
$14 million in earnings and $465,000 in Community Donations.2022 ESG Achievements – CUC ESG Report.
$14m profit… IN 3 MONTHS!
It is the oil price driving the profit. CUC base cost is almost same as they not allow to increase without any approvals.
Fuel costs are a direct pass through with no markup by CUC. Therefore fuel costs do not contribute to their profits.
No it isn’t. Their fuel costs are passed on to us. It doesn’t make any difference to them whether fuel is $2 or $6 aside from price elasticity (the more expensive it is, all other things being equal, the less they sell)
Why sign “Caymanian” and make the rest of us look bad!? You do realize CUC is public company and their financials are available to the public? No need to speculate on what is driving their profits.
Obscene.
It’s not CUC’s fault you couldn’t keep your fridge closed!!
It’s unconscionable that the Cayman government allows a public MONOPOLY to get away with such GOUGING. Their profit should be CAPPED at a much lower percent — and all earnings above that amount be returned to customers in the former of lower rates. COME ON, CAYMAN MINISTERS, START REPRESENTING CONSTITUENTS FOR A CHANGE.
That’ll be the day🙄
This story only talks about the % INCREASE od CUC’s earnings compared to the previous year. What were the TOTAL earnings for that quarter and what was the comparison??
They won’t. Many of those ministers are CUC shareholders.
Exactly (or their “friends and family”). Then to make it more absurd government actually mandates minimum annual dividend distributions. Unbelievable but true.
34% profit means we are being gouged plain and simple. I can understand 10% but not 34%. Allow us, the consumers to participate in your dividends as well then. In other words, give back some of what you took.
You can participate in dividends, buy stock and reap benefits.
Profits increased by 34% doesn’t mean 34% profit. For example, a 7% profit increased by 34% is about 9.4%. The 2.4% jump is a 34% increase on the previous level of 7%.
It doesnt say 34% profit. It says profit INCREASED 34%.
In fact in the 3 months ended 30Sep they made $14m off $32m in electricity sales or 44% profit!!!
$73.5M in revenues for that period, not $32M. You’re only counting one of the revenue line items rather than the total revenues.
The nine months ended figure is generally a better perspective, because it’s less skewed by the summer months (hottest temps and highest sales).
That timeframe is showing an earnings rate of 13.7% of revenues, compared to 12.8% prior year for the same period. That prior year ended at 12.4% over the twelve months, so this one will probably drop a bit too in the cooler fall/winter.
Overall, not an extraordinary change at the relative scale of the business, which is why in a high-interest rate environment you’re still seeing negative pressures on their share price as higher returns are available through other investment vehicles.
Hi CUC shareholder! Nonsense. I quite clearly said “electricity sales” not total revenues. You are including Fuel and duty cost which is a direct pass through cost, zero profit or loss, zero value add, zero risk to CUC. The only reason you would include that in revenues is to try and make the profits look less obscene.
correct me if I’m wrong (I don’t have a CUC account) but I thought consumers could sign up to be shareholders?
They should be capped on earnings. This is not okay when they have a monopoly on the market.
C…U…C… – we have your money!
How many other businesses increased their profits by 34% for the same period? Probably no others. Good to be a monopoly.
So sick of being fleeced by this monopoly, if Cayman had a cheaper alternative/competition CUC would be bankrupt.
Well, you have Brac Power and Light but they charge more. You have Solar options as well.
You don’t have solar options because CUC limit that as well to keep their profits high.
Solar is available right this very moment.
why do i feel like ive been bent over a barrel
Incredible. With another round of price increases coming next year.
Though great for all those Ministers and opposition members and families that have many shares in CUC.
Its price gouging, plain and simple. They have us by the short and curly’s and they know it. Wouldn’t have killed them to stay at the previous rates.
Then somebody please explain why the steep drop in their share price..?
share prices look forward 3 months until the next earnings announcement. Chances are they won’t hit 34% again so investors pull their money out and take the profit and invest it somewhere else. Other reason is that small companies like CUC can be manipulated in the stock market do they drive the price down to buy it back in the spring so that when it is another hot summer they can sell and make a profit. it’s cyclical
Not sure how new you are to the Island or a fledging investor and while you aren’t wrong really I can tell you CUCs majority shareholders have an entirely different model
They go for guaranteed interest on their deposit
CUC is more or less capped in terms of growth due to the size of Cayman
That guaranteed interest is the guaranteed monopoly and built in price increase every year
Thank you 1.10…appreciate your clear explanation.
If CUC is making so much money, I don’t understand why it’s shares have dropped in value..
It is clear that this monopoly and its guaranteed return on investment must be taken to task. Will the Caymanian Accountants get together and propose a more equitable contract. Come on Niko, Ian, Dan and Noal do your country a big favor, we know you can afford the exorbitant price gouging but many if your fellow caymanians can’t or are just barely doing so.
Did I miss something – why is it the responsibility of accountants to to suggest lower rates?
It is offregeous that offreg punted on their number one duty.
You should have seen that tailored and joke job posting qualification for those positions.
Offreg needs to be fired and disbanded.
Is it possible to actually get an independent oversight body that isn’t beholden to politicians, bureaucrats and the business sectors they are supposed to oversee?
you wouldn’t know it by their stick price…