CARIBBEAN UTILITIES COMPANY, LTD. (CUC) ANNOUNCES 2023 YEAR END RESULTS AND STRATEGIC MILESTONES

"Strong earnings continue to place the Company in a position to support appropriate levels of capital investment in infrastructure projects that ensure that we continue to deliver safe, reliable, least cost and sustainable energy to the people of Grand Cayman," said Mr. Richard Hew, President and Chief Executive Officer.  

In 2023, the Company maintained its Investors In People Gold Level Accreditation. CUC has a primary goal to recruit, retain and develop the most talented individuals within the utility industry. The Company aims to be an organization that employees choose to work for and wants to consistently demonstrate commitment to the team through active participation in our community and training programmes. This is the Company's third consecutive gold certification and underscores the Company's commitment to creating a positive work environment that fosters growth, innovation, and excellence by continuously investing in our people.  

The Company made good progress on preparing Grand Cayman for a transition to renewable energy as a primary resource.  Partnerships with key suppliers through Engineering, Procurement and Construction contractors for Solar plus Storage projects were secured and plant designs were prepared for tender as the Company readied to bid for the expected OfReg competitive solicitation for utility scale solar.

While the renewable energy market is being developed, the Company continues to make meaningful strides with its contribution to the National Energy Policy's carbon reduction goals. In 2023, the Company rolled out the EV Charging Station programme. The project aims to provide additional public charging stations throughout the island. By creating this programme, customers now have easier access and more options to charging stations. By the end of 2024, it is anticipated that 20 additional charging stations will be installed and activated across the island. 

Considerable progress has been made on the Battery Energy Storage project.  At the end of January 2024, the Company will have completed the first set of the 10MW installation at its Hydesville, West Bay Sub-Station. The batteries will assist with the transition from diesel generated energy dependency and provide a reduction in carbon emissions and cost savings for our customers.  

The Request for Qualification ("RFQ") for the supply of liquefied natural gas was completed in 2023, in line with the National Energy Policy and the Company's Integrated Resource Plan. CUC is committed to increasing the use of cleaner energy, reducing energy costs and to reducing greenhouse gas emissions over the long term. This Battery Energy Storage System and the conversion of the engines to utilise natural gas will assist with these primary goals.  

Capital Expenditures for Fiscal 2023 were $97.6 million, an increase of $1.8 million from capital expenditures for Fiscal 2022. These expenditures were in primarily related to the following projects:  

• Distribution system extension and upgrades
• Generation replacements
• Lifecycle upgrades
• Alternate energy technologies
• Installation of utility scale battery storage, which is ongoing,
• Facility and auxiliary asset replacement costs, and other resiliency projects

The above capital projects will enhance the reliability and safe delivery of electricity service to the customers of Grand Cayman. Most of these projects will also assist in the reduction of carbon emissions, which is in line with the Company's target of 60% reduction of emissions by 2030. These projects will also assist the Company with providing better cost-saving solutions to customers as CUC transitions to more renewable energy sources.  

CUC's Annual 2023 results and related Management's Discussion and Analysis ("MD&A") are attached to this release and incorporated by reference.  The MD&A section of this report contains a discussion of CUC's 2023 results for the twelve-month period ended December 31, 2023, the Cayman Islands economy, liquidity and capital resources, capital expenditures and the business risks facing the Company. The release and 2023 annual results 2023 MD&A can be accessed at www.cuc-cayman.com (Investor Relations/Press Releases) and at www.sedarplus.ca. 

The principal activity of the Company is to generate, transmit and distribute electricity in its  licence area of Grand Cayman, Cayman Islands, pursuant to a 20-year Transmission &  Distribution ("T&D") Licence and a 25-year non-exclusive Generation Licence (the "Generation  Licence" and together with the T&D licence, the "Licences")  granted by the Cayman Islands  Government (the  Government",  "CIG"). The T&D Licence, which expires in April 2028, contains provisions for an  automatic 20-year renewal and the Company has reasonable  expectation of renewal until April 2048. The Generation Licence expires in November 2039. 

Further information is available at www.cuc-cayman.com. 

Certain statements in the MD&A, other than statements of historical fact, are forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to the Company and its operations, including its strategy and financial performance and condition. Forward looking statements include statements that are predictive in nature, depend upon future events or conditions, or include words such as "expects", "anticipates", "plan", "believes", "estimates", "intends", "targets", "projects", "forecasts", "schedule", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". Forward looking statements are based on underlying assumptions and management's beliefs, estimates and opinions, and are subject to inherent risks and uncertainties surrounding future expectations generally that may cause actual results to vary from plans, targets and estimates. Some of the important risks and uncertainties that could affect forward looking statements are described in the MD&A in the section labeled "Business Risks" and include but are not limited to operational, general economic, market and business conditions, regulatory developments and weather. CUC cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.   

SOURCE Caribbean Utilities Company, Ltd.