Last checked at 12 Jul 2011 07:00
Jersey Electricity plc
Interim Management Statement
Jersey Electricity plc is today publishing an Interim Management Statement as required by the revised UK Listing Authority's Disclosure and Transparency rules, relating to the period from 1 April 2011 to the date of issue of this announcement.
In the quarter to 30 June 2011, unit sales of electricity in our Energy business were 2% lower than the same period last year as a result of milder than normal weather patterns with April in particular being the warmest in Jersey since 1894. Unit sales for the month of July to date are at a similar level to those experienced in 2010.
In the 9 month period to 30 June 2011 unit sales of electricity were 1% higher than the same level as in 2011 and electricity revenues in the Energy business were on a par with the previous year.
Our power purchase and foreign exchange requirements are fully hedged for the remainder of this financial year. In addition, a significant proportion of the forward imported electricity requirements for the following two calendar years have been price fixed (2012: 80%; 2013: 36%). Foreign exchange has also been hedged for 2012 and 2013 to cover the power hedges that have been placed.
As indicated in our Interim Report, a new ten year power importation framework for the period from January 2013 to December 2022, was struck by Jersey Electricity and Guernsey Electricity, with our existing supplier EDF. This was formalised during June, following a competitive tendering process and ensures the continuation of reliable, low-carbon imported electricity to the Channel Islands into the next decade.
Our other business units, at a total level, traded ahead of the corresponding financial position in the last financial year in both the last quarter and the year to date excluding non-recurring revenues in the prior year.
The project to build a 90kV switching station at South Hill, that will become a critical network hub for import facilities and local generation in Jersey, is scheduled to be completed in September as planned and on budget at an estimated cost of £10m. This will feed into our new 200 MW grid system which will be completed over the next 6 to 7 years.
The cash balance at the end of June 2011 was £20m being £3m lower than the level at the last financial year end. It is anticipated that such cash resources will be absorbed in the delivery of the planned capital expenditure programme on electricity infrastructure in the short to medium term. Our balance sheet remains in a similar financial state to that issued at our half year and there have been no significant changes in the overall financial position of Jersey Electricity plc since the issue of our Interim Report for the six month period ended 31 March 2011.
12 July 2011
For further information, please contact:
Chris Ambler, Chief Executive Tel: 01534 505320
Martin Magee, Finance Director Tel: 01534 505201