Last checked at 18 Jul 2014 07:00
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 April 2014 to the date of issue of this announcement.
In the quarter to 30 June 2014 unit sales in our Energy business were 9% lower than the same period last year due to temperatures being higher than both last year and the long-term average. Unit sales for the month of July to date are 3% behind the level experienced in 2013.
In the nine month period to 30 June 2014, unit sales in our Energy business were 8% lower than in 2013 due to a combination of temperatures being consistently above the seasonal norm to date and the corresponding period last year being particularly cold. Year-on-year tariff increases have helped mitigate the lower unit sales with energy revenues being 4% lower than in 2013.
Our power purchase requirements and the associated foreign exchange exposure are materially hedged for the next three years. We continue to maintain our strategy to deliver stability over the medium term in the cost of importing and generating power, as this is our largest operating cost.
The combined trading performance of our other business units was behind the corresponding period in the last financial year due mainly to the continued challenging trading conditions for our retail business.
As indicated in our Half Year Interim Report, the project to lay the next submarine cable (Normandie 3) between Jersey and France is progressing well. Over the last quarter the subsea cable has been laid and the land cabling works in both France and Jersey are making good progress. The project is presently on budget and ahead of schedule, and we hope to be able to bring forward the expected in-service date from 2015 to the last quarter of 2014. Following the completion of Normandie 3, Jersey will benefit from two diverse connections in operation between the Island and France.
Net debt at the end of June 2014 was £23m against a figure of £20m at our half year and £5m at the last financial year end, driven primarily by Normandie 3 capital expenditure. In early June, longer-term financing arrangements were put in place to replace the existing 2 year revolving credit facility. Jersey Electricity plc obtained a combined £30m comprising 20 and 25 year financing via a private placement with Pricoa Capital Group (an affiliate of Prudential Financial, Inc.) supplemented by a £40m, 5 year revolving credit facility from The Royal Bank of Scotland International Limited.
Our balance sheet remains in a healthy condition, and there have been no significant changes in the overall financial position of Jersey Electricity plc since we issued our Interim Report for the six month period ended 31 March 2014 other than those highlighted above.
The principal risks and uncertainties identified in our last Annual Report have not materially altered in the interim period.
18 July 2014
For further information, please contact:
Chris Ambler, Chief Executive Tel: 01534 505320
Martin Magee, Finance Director Tel: 01534 505201