CUC kicks off 2024 with 18% earnings increase
(CNS): Grand Cayman’s power provider got off to a very profitable year with a $1 million rise in net earnings to over $6.2 million for the first quarter of 2024, an 18% increase compared to the first three months of 2023. A 6% increase in sales, a 2% growth in customers and an increase in the base rate all helped profits significantly, even as customers across the island struggle to pay ever-increasing light bills.
With a warmer start to the year, customers used more power to beat the heat while shareholders enjoyed a 2-cent increase in their dividends from 14 cents this time last year to 16 cents.
CUC said in a press release that the increase in sales to larger commercial customers was driven by economic growth, while the growth in sales to residential customers was mainly attributed to increased average consumption. The average temperature for the first three months of 2024 was 80.8°F, slightly above the average temperature of 80.6°F in the first quarter of 2023.
The average fuel factor, which is passed on directly to customers, was down slightly over this first quarter from $0.24 per kWh for Q1 2023 to $0.23 per kWh. However, this was cancelled out for ordinary consumers by the base rate increase on bills of 3.8%, which kicked in from August last year.
CUC said it continued investing in the grid, especially beginning to adapt generators to burn gas instead of diesel and the utility-scale Battery Energy Storage System project (BESS). Officials from CUC said that, once approved by the regulator, this facility will allow for further renewable energy on the grid and provide potential savings of up to $5 million per year in fuel costs.
CUC President and CEO Richard Hew said that the company “continues to focus on our capital investment and infrastructure projects with an emphasis on sustainability. We continue to make investments that will allow CUC to increase fuel efficiency and reduce our reliance on diesel, all while continuing to safely deliver reliable and least cost energy.”
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CUC began as the first Government Owned power company, but was soon privatized when the politicians and their families saw the PROFIT Potential!!
A real Crime!
How can CUC fail to increase profits? Profitability and dividends are mandated within the CUC/CIG monopoly agreement. It truly is a farce that anyone is surprised and it’s why so many buy CUC shares. The company that cannot fail! And, all at the expense of the Cayman consumer. Remember Cable & Wireless?
There is a massive conflict of interest between CUC share ownership, CIG voting on the monopoly and all CUC matters going forward such as Solar contracts. We should be lobbying for the removal of CUC as a monopoly utility provider but then what would the CUC shareholders say?
CUC is as much as “Business” as North Korea is a “Democracy”.
…..though, to be fair, North Korean Leaders do have a shorter tenure than CUC’s CIG guaranteed monopoly…..
All you people crying down CUC share Dividends why not buy shares your selves ?
Have you ever tried to buy CUC shares? They might be listed but the shop is closed for all practical intents and purposes.
Absolute nonsense lol
The trouble with CUC is that it is run as a cartel for a select few. The availability of dividend shares and the allocation of solar needs to be forced open so that the wider public can invest and benefit.
I am against the CUC monoply, but how in the world can you say that the availability of shares is not open to the wider public? You realize that CUC is public company and any person that wishes to do so can buy shares? If you do not know how to go about buying shares that’s a different story.
Literally anyone on the planet can buy CUC “dividend shares”. CUP.U trades on TSE.
It is a PUBLIC COMPANY, anyone can buy shares and receive dividends. Please stop crying on CNS and go start an IBKR account and put your money where your mouth is. People are so uninformed.
Anyone can buy shares. There is not restriction as it trades publicly on the Toronto Stock Exchange.
The shares are readily available. This does not have to be “forced” in any way.
Spend some money and bury those ugly power lines
Um no. The cost would get passed on to the consumer. Also, we have seen how inept they are when it comes to working and installing anything underground. How often do we see brand new roads get paved and then CUC/Water Authority digging them up weeks later? Repairs also cost way more and are harder to locate with underground lines.
What is going to slow the drunk drivers down then?
Ask Jonjon.
Open your wallet then .. you go first
Please stop posting their profits while Caymanians are struggling to pay them each month, along with the other essentials that are needed to provide for our families. Instead of bragging about how much money you made how about making it affordable for us to keep our families cool in the unbearable heat? Just a thought!
They’re a public company. They have to post their earnings numbers BY LAW.
You’re overlooking the fact that hundreds of Caymanians have jobs, job security and training from CUC profits. Add to that scholarships to Caymanians over many years.
As Margaret Thatchier said…..”Even the Good Samaritan would have been useless, had he not been rich”.
Congratulations to all involved.
+ Smash the CUC Monopoly NOW.
+ Seperate Generation from Distributon
+ Net Metering NOW on distributed solar
….all the rest is gold plated monoploistic mumbo jumbo……
“Separate distribution from generation”
Whoever distributes the power will have to buy it from whoever generates it.
You think they’re going to pass it on at cost…? You must be a civil servant.
As they milk their own people and govt whistles and looks away , epic
It must be tough running a government approved monopoly in an inelastic industry. Throw in the that they don’t allow you to generate your own power and you only make how much profit? What a great model to generate efficiency and competition.
Bravo 👏
Such a fine company always providing fair and reasonable prices. No need to stop this monopoly like cellphone service has with Flow and Digicel when CUC give so much to the community that everyone can afford and say I’m proud to pay my utility bill every month. Just wish they sold CUC merchandise like CUC tracksuits and CUC hats cause like would be like totally awesome!
..HA!…
Thanks for the feedback! Just wanted to let you know that the latest collectible CUC jersey is now available when you sign up for the CUC 5K run being held on Saturday May 18th with all proceeds from the event going to the Sunrise Adult Training Center. You can register at http://www.racecaribbean.net
Flow and Digicel? Are you serious? Cell service in Cayman costs between 10 and 20 TIMES more than it does in the UK. I get more data on my 10GBP/m Vodaphone UK SIM than I do on my CI120 Flow SIM. Flow and Digicel are the worst pirates! At least CUC still costs less than electricity in the UK, Germany, Ireland Etc…
In the UK now. Getting 500 (working) Mb + phone line for £50 pm. paid the same for 10 Mb unreliable internet in Cayman.
flow and digicel really? yeah we get such great service at such great rates NOT
Bring on the dividends!
We are very fortunate to have a utilities service who provide an excellent reliable service.
Costly yes, but this is a place where we expect first world service , and that’s what it costs.
Want to pay less..? Use less.
Said like a true CUC employee.
They’re not wrong though. Go live anywhere else in the Caribbean and see how unreliable the power is.
Except that the Caribbean is not the benchmark for Cayman
Good. I hope they make 81% profits this Summer!!
Yeah Nonimous, looking forward to a massive dividend windfall this year.
Best stock to own ever. Love it as get consistently great returns owning CUC stock.
You’re not wrong. wish i own 10 thou more shares
….And yet another CUC slap in the community’s face as the Government yawns and cashes their fat salaries.
And not just their fat salaries but their fat CUC dividends.
Yes, they are a publicly traded company and any company like that has to make money otherwise there is no point of being in business.
CUC have been GIFTED a MONOPOLY and keep getting it extended ad infinitum.
I could agree if they were a “true” business with competition from another utility (generaation and/or distribution) or with individual residents (distributed solar/wind/wave etc.), but they are NOT.
And WORSE – Post Ivan, we paid for CUC to rebuild their transmission and distribution net work though being screwed over by the Ivan Recovery levy/surcharge added to our monthy CUC bills.
CUC is NOT a business. It is a Monopoly.
Then you clearly don’t remember Cayman before CUC.
They were not GIFTED anything, they risked their capital and investment with very few customers and little to no return.
It’s a monopoly because no one else is willing to risk the massive layout to do what CUC is now doing.