CARIBBEAN UTILITIES COMPANY, LTD. DELIVERS FAVOURABLE Q3 2025 PERFORMANCE, AND PROGRESS ON CUSTOMER AFFORDABILITY GOALS

Executive Summary

• Caribbean Utilities Company, Ltd. reported Q3 2025 net earnings of $16.1 million, up $1.7 million (12%) versus Q3 2024, driven by higher electricity sales and base‑rate adjustments.
• Capital expenditures were $20.4 million for the quarter, an $8.7 million reduction year‑over‑year after completing a battery storage project; two segments of the Resiliency Project were completed at a cost of $7.8 million.
• Operational reliability improved markedly: outages fell ~8% and customer interruption hours dropped >33% versus the prior year, while lifecycle upgrades on five generating units (68 MW total) were finished.

Key Details

• Financial Performance
• Net earnings Q3 2025: $16.1 M vs. $14.4 M in Q3 2024.
• Operating income: $15.5 M, up $1.7 M (12%).
• Electricity sales revenue: $35.7 M, +4% ($1.6 M) YoY.

• Earnings per Class A Ordinary Share: $0.38, unchanged from prior year after dividend adjustment.

• Sales & Consumption

• Sales volume increased by 2.8 million kWh vs. Q3 2024.

• Customer base grew 2% YoY; large commercial customers showed higher consumption.

• Cost & Efficiency

• Fuel factor costs fell 17%, reflecting lower fuel prices and infrastructure upgrades.

• Base rate increases of 4% (effective June 1 2025) and 3.2% (June 1 2024) contributed to revenue growth.

• Capital Projects & Expenditures

• Total CAPEX Q3 2025: $20.4 M, down $8.7 M YoY after battery storage project completion in 2024.
• Resiliency Project – two segments completed at a cost of $7.8 M to enhance grid security.

• Lifecycle upgrades on five major generating units (combined capacity 68 MW) finalized, improving fuel efficiency and reliability.

• Reliability Metrics

• Outages decreased ~8% YoY.

• Customer interruption hours down >33% versus Q3 2024.

• Regulatory & Strategic Milestones

• Submitted a new Certificate of Need to URCO on Sept 5 2025, outlining capacity expansion plans aligned with the Cayman Islands’ National Energy Policy.

• Participation in the Regulator’s renewable competitive bidding process (launched Aug 2025) targeting the island’s largest utility‑scale solar project.

• Corporate Milestone

• Celebrated 35th anniversary of TSX listing on Sept 10 2025, highlighting historic access to capital markets and ongoing infrastructure investment.

Notable Quotes

“We are deeply committed to serving customers and delivering long-term value to shareholders… The third quarter has been especially meaningful, marked by the 35th anniversary of our TSX listing, participation in the Regulator’s renewable tender, and submission of the new Certificate of Need…” – Mr. Richard Hew, President & CEO

Materiality Assessment: Material – Positive** (the release provides significant financial and operational updates that are likely to influence investor decisions).