Last checked at 23 Jan 2012 14:00
Jersey Electricity plc
Interim Management Statement
Jersey Electricity plc is today publishing an Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency rules, relating to the period from 1 October 2011 to the date of issue of this announcement.
In the thirteen week period since the beginning of the financial year to the end of December unit sales of electricity fell by 9% compared to the same period in the prior year. This was largely driven by the combination of the unusually warm winter so far this financial year compared with a cold winter over the same period last year. The 2011 calendar year was the warmest year in Jersey since records began and the full quarter enjoyed average temperatures of 12 oC compared to 9 oC in 2010 and a long-term average of 10 oC. Revenues in our Energy Division fell by 8% because of the lower unit sales but our target profitability has not been materially impacted due mainly to reduced costs.
In the period from 1 January to the date of issue, electricity unit sales were at a lower level than last year due to continuing mild weather.
We announced to customers, following our tariff freeze during 2011, that prices would remain at current levels until at least April 2012 and we will be reviewing our tariff strategy going forward over coming months. Our power purchase and foreign exchange requirements are materially hedged for the remainder of this financial year. In addition, a substantial proportion of the forward imported power and foreign exchange requirements for 2013 have been hedged.
The combined trading performance of our other business units was slightly behind the corresponding period in the last financial year due mainly to the challenging trading conditions for our Retail business.
The project to import and refurbish two second hand diesel engines commenced in the quarter with the plant expected to arrive in Jersey during February. This project is scheduled to be completed by quarter 1 next year at a cost of around £10m. The engines replace two units within our existing generating fleet which have recently come to the end of their useful lives and will provide additional on-island flexibility and resilience.
The cash balance at the end of December 2011 was £21m against £24m 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 similarly healthy condition, and there have been no significant changes in the overall financial position of Jersey Electricity plc since we issued our Preliminary Announcement on 15 December 2011 for the year ended 30 September 2011
The principal risks and uncertainties identified in our last Annual Report, which has just been issued in advance of our AGM on 6 March, have not materially altered in the interim period.
23 January 2012
For further information, please contact:
Chris Ambler, Chief Executive Tel: 01534 505320
Martin Magee, Finance Director Tel: 01534 505201