Caribbean Utilities Company, Ltd. (“CUC” or the “Company”) announced its unaudited results for the fourth quarter and twelve months ended December 31, 2011 (all figures in United States dollars).

Net earnings for the three months ended December 31, 2011 (“Fourth Quarter 2011”) were $5.1 million. This represents an increase of 9%, or $0.4 million, from net earnings of $4.7 million for the three months ended December 31, 2010 (“Fourth Quarter 2010”). This increase in earnings is the result of an increase in electricity sales and a decrease in maintenance and transmission and distribution expenses as the Company continued to focus on reliability driven capital upgrade projects during the period.  Electricity sales were positively impacted by warmer weather conditions during the Fourth Quarter 2011 versus the same period last year.  Overall, kilowatt- hour (kWh) sales for 2011 were flat at 554.0 million.

Net earnings for the twelve months ended December 31, 2011 were $20.4 million, representing a 3% or $0.5 million increase from net earnings of $19.9 million for the twelve months ended December 31, 2010. With flat kWh sales, this increase in earnings was driven by an increase in other income and lower financing and maintenance charges.

Higher fuel prices and 4% kWh sales growth drove operating revenues up by 22%, or $10.3 million, to $57.7 million for the Fourth Quarter 2011 as compared to $47.4 million for the Fourth Quarter 2010.  Operating revenues increased 21%, or $38.0 million, to $218.1 million for the twelve months ended December 31, 2011 from $180.1 million for the twelve months ended December 31, 2010.  The increase in operating revenues was a result of higher fuel factor revenues in 2011 due to an increase in fuel prices.   The average Fuel Cost Charge rate per kWh charged to consumers for the twelve months ended December 31, 2011 was $0.27, a 35% increase from $0.20 per kWh for the twelve months ended December 31, 2010.  Actual fuel and lubricating costs are passed on to consumers without mark-up.