LIGHT & POWER HOLDINGS LTD. TO ACQUIRE EMERA CARIBBEAN LIMITED’S INTEREST IN ST. LUCIA ELECTRICITY SERVICES

LUCELEC TO IMPLEMENT A STOCK SPLIT IN RESPECT OF ITS ISSUED ORDINARY SHARES

SPECIAL MEETING OF SHAREHOLDERS - May 6th, 2011

46th ANNUAL MEETING OF SHAREHOLDERS - May 6th, 2011

2010 ANNUAL REPORT (PDF Download)

2010 FINANCIAL HIGHLIGHTS

CariCRIS REAFFIRMS CariBBB RATING FOR LUCELEC - December 2011

DIRECTOR’S REPORT TO SHAREHOLDERS FOR THE NINE MONTHS ENDED 30th SEPTEMBER, 2011

The Directors are pleased to report on the unaudited results of the Company for the nine months ended 30th September, 2011.

OVERVIEW
While the Company’s overall performance to date was below that of the previous year, there was reasonable stability in electricity sales. This was due mainly to increasingly high ambient temperatures resulting in the higher use of cooling equipment.

RESULTS OF OPERATIONS
Electricity sales declined by 1.2% when compared to the same period last year. Declines were recorded in the Domestic sector (2.2%); the Hotels sector (7.40%) and the Industrial sector (0.3%). Increases of 3.1% and 3.3% were recorded in the Commercial and Street Light sectors, respectively.

At EC$235.5M, there was an increase in total revenues of 12% when compared to the achievement in the same period last year of EC$210.1M. This was attributable to higher fuel costs which are fully passed through to customers at cost as the Fuel Surcharge, in accordance with the Electricity Supply Act (as amended).

Gross profit of EC$54.0M, recorded a decrease of 7.8% over last year’s position of EC$58.6M and Profit before tax was EC$27.7M, a decrease of 15.6% over the corresponding period last year ($32.8M). This decline is attributable to the decrease in electricity sales and higher network maintenance costs.

System reliability performance for the year to date of 6.45 hours was not as good as the 5.03 hours achieved in the same period in 2010. These results are attributed to post Hurricane Tomas effects on the T&D system as well as the continuous higher than usual rainfall levels and inclement weather. As such the target of 5.9 hours for the year will not be achieved.

Year to date fuel efficiency increased to 4.30 kWh per litre up slightly from 4.29 kWh per litre over the same period last year.

System losses recorded at 9.75% at the end of the period deteriorated from the 9.51% recorded in the same period last year. Strategies are being implemented to improve the performance, but it is not anticipated that the year-end target of 9.0% will be achieved.

In accordance with the provision of the Electricity Supply Act (as amended) Hotel, Industrial and Domestic customers consuming up to 180 kWh per month continued to receive tariff reductions of 2.1 cents per unit.

STRATEGIC INITIATIVES
An order was placed for the two high speed generating units with a capacity of 2.4 MW and installation will be completed during the last quarter of the year. A contract was also concluded with Wartsila for the purchase, installation and commissioning of an additional 10MW generating unit to be located at the main generation site at Cul de Sac.

The Board has approved the extension of the Fuel Price Hedging programme to 30th June, 2012 as the programme has continued to meet its objective of reduced tariff volatility.

The Company has made all necessary arrangements for the execution of a 2 for 1 stock split in respect of its issued Ordinary shares that will take effect from 1st October, 2011.

At the end of the period the Company was in the process of evaluating several proposals for securing long term financing for its short and medium term generation expansion and on-going capital expenditure programmes. These are expected to be concluded early in the last quarter of the year.

The Company continues to be engaged with the relevant authorities to implement the National Energy Policy approved by the Cabinet of Ministers.

OUTLOOK
The Directors expect that with constant monitoring of operations and the stability in sales trends observed late in the third quarter, performance will improve albeit at a lower level than the previous year.

At all times the Company will remain committed to fulfilling its obligations to all stakeholders.

Dr. Trevor A. Byer
Chairman

September 2011 Statement Of Cash Flows

September 2011 Balance Sheet

September 2011 Income Statement

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