Last checked at 17 Jul 2008 07:00
Jersey Electricity Company Limited
Interim Management Statement
The Jersey Electricity Company Limited 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 2008 to the date of issue of this announcement.
In the quarter to 30 June 2008, unit sales of electricity in our Energy business rose by 5% compared to the same period last year due mainly to a colder April this year. Unit sales for the month of July to date are at a similar level to those experienced in 2007.
In the 9 month period to 30 June 2008 unit sales of electricity were 6% higher due to colder weather patterns compared to the same period last year. Revenues in the Energy business were 9% higher due to this increase in sales volumes combined with a tariff rise which took place on 1 January 2007.
We have pledged not to increase tariffs in the two year period ending 1 January 2009. Our power purchase and foreign exchange requirements are materially hedged for the whole of this period mitigating recent further increases in wholesale electricity prices (on which our European power importation contract is based). In the last 12 months wholesale electricity prices have risen by around 75% and in addition Sterling has weakened against the Euro by 15% and although we have been progressively hedging our position for 2009, we expect that an increase in our power prices of at least 25% will be required next January to recover increased costs.
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.
The £13m project to upgrade the electricity infrastructure in the west of Jersey, which was initiated during the last financial year, continued on schedule during the period and it is still expected to be completed in October 2008.
Our balance sheet remains strong and there have been no significant changes in the financial position of the Jersey Electricity Group since the issue of our Interim Report for the six month period ended 31 March 2008. The cash balance at the end of June 2008 was £16m being at the same level as 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.
16 July 2008
For further information, please contact:
Martin Magee, Finance Director Tel : 01534 505201
Peter Routier, Company Secretary Tel : 01534 505253