Caribbean Utilities Company (CUC) increased its third-quarter earnings by 13% as electricity sales picked up across Grand Cayman.
The power provider recorded net earnings of US$17.5 million for the three months ended 30 September, up from $16.1m during the same period last year.
The increase was driven by higher electricity sales and lower depreciation expenses.
Electricity sales rose 4% during the quarter, while a 2% base rate increase took effect on 1 June.
CUC also benefited from lower depreciation costs after certain generating units were approved for extensions to their useful lives.
The improvement followed a slower start to the year. CUC said electricity sales growth had been flat at the end of the second quarter but recovered during the third quarter, bringing year-to-date growth to 2%.
For the first nine months of 2026, net earnings reached $39.8m, compared with $35.2m in the corresponding period last year. Earnings per Class A ordinary share increased 12% to $0.93 from $0.83.
Fuel efficiency also contributed to the company’s performance. CUC estimated that it saved about two million imperial gallons of fuel during the first nine months, reducing fuel costs by $9.9m.
During the third quarter alone, estimated savings reached 0.8 million imperial gallons, or 6.45%, representing a $4.2m reduction in fuel costs. This translated into average savings of $118.45 per customer for the quarter.
The company attributed the lower fuel consumption partly to its battery energy storage systems and life cycle upgrade projects, which reduced the need for thermal spinning reserves by up to 50%.
Net fuel efficiency improved to 19.69 kWh per imperial gallon, compared with 19.25 kWh during the third quarter of 2025.
“CUC continues to achieve strong organisational outcomes in 2026, while maintaining a clear focus on the priorities that matter most to our customers: affordability and reliability,” CEO Richard Hew said in a press release on 4 November.
“In a year marked by fuel price volatility, the need to accelerate energy efficiency and transition has become increasingly important.
“As we move through the remainder of 2026, we remain committed to advancing initiatives, including utility-scale solar and battery storage, that support a more affordable, reliable and sustainable energy future for Grand Cayman.”
CUC also completed a $160m private placement of senior unsecured notes during the quarter, the largest such financing in its history.
The arrangement includes an initial $100m drawdown made on 19 August and a further $60m available on 12 May 2027, with $30m of the initial funding designated as green notes.
The financing will support upgrades to Grand Cayman’s electricity grid and investments in infrastructure resilience.
Separately, CUC reported an annualised dividend yield of 5.4%. Dividends paid per Class A ordinary share during the first nine months rose 4% to $0.590 from $0.565 a year earlier.
