Of Holdings three main operating subsidiaries, both Bermuda Electric Light Company Limited (BELCO) and Bermuda Gas & Utility Company Limited reported record earnings for 2001, while BELCO Energy Services Company Limited (BESCO) performed well, but fell short of results achieved in 2000.
Holdings' largest operating subsidiary, BELCO returned earnings of $19.8 million in 2001. This represents an increase over 2000 of 2.3 percent. Total electricity sales increased 3.9 percent to $132,319,206, while kilowatt hour (kWh) sales were up 3.5 percent as a result of increased consumption by both the residential and commercial sectors.
Bermuda Gas reported an increase in net income of 12.5 percent over 2000, with gas sales up 5.5 percent in 2001. The Company's efforts to reduce expenses helped to offset shortfalls in appliance and service and parts sales during the year.
While BESCO's net income was down 19.6 percent from 2000, the Company performed as expected. Operating revenue up 20.6 as a result of a strategic move to grow the operational capabilities of the Company through an increase in staffing to meet the energy service sales opportunities that are expected in the near future.
Dividends paid per share increased 10 percent during the fourth quarter of 2000, resulting in a cash dividend per share for 2001 of $1.54 as compared to $1.43 in 2000. Holdings' share price ended the year at 27.25, up 18.5 percent from the $23.00 posted at the end of 2000. As of March 29, Holdings' shares were trading at $29.00. Earnings per share increased to $4.55 from $4.46 in 2000.
"We are very pleased with the results achieved by the BELCO Holdings group in 2001,'' said President and CEO Mr. Garry A. Madeiros. "The year was not
without its challenges, especially during the fourth quarter of 2001 following the terrorist attacks of September 11. Throughout the year, we continued to work towards becoming a more productive and responsive organisation. We have begun the process of changing the way we do business by improving our work procedures, and generally achieving more with less."
"We expect another challenging year in 2002 and anticipate maintaining the level of results achieved in 2001. I thank all of our employees for their consistent hard work, determination and loyalty in achieving such positive results over the past year."
The Annual General Meeting of BELCO Holdings Limited will be held on Thursday, April 25 at 2 p.m. at Bermuda Electric Light Company Limited headquarters, 27 Serpentine Road. All shareholders are invited to attend.
For additional information, please contact Robin Sidders, Manager, Corporate Communications, 299-2814.