Belco Announces Financial Results For 2002

The 2002 consolidated net earnings results reflect the gain of $2.5 million on the sale of Quantum Communications Limited and Fibre.com Limited, as well as solid performances by the three operating subsidiaries, although combined slightly lower than last year.

Bermuda Electric Light Company Limited (BELCO) ended the year earning $19.5 compared with $19.8 recorded in 2001. Bermuda Gas & Utility Company Limited (Bermuda Gas) closed with earnings 2.54 percent lower than 2001. BELCO Energy Services Company Limited (BESCO) ended the year 28.8 percent ahead of 2001.

As anticipated, 2002 got off to a slow start due to the effect of the September 11, 2001 terrorist attacks in the United States and the effects of the ensuing war on terrorism on Bermuda's tourism industry and the economy generally. Electricity and propane gas sales were further depressed by milder winter temperatures, reducing the 2002 demand for energy for heating.

BELCO total electricity sales increased slightly, 0.6 percent to $133,112,648, while kilowatt hour (kWh) sales were up 3.8 percent as a result of increased consumption by both the residential and commercial sectors.

Bermuda Gas reported a 2.4 percent decrease in propane gas sales during 2002. However, the introduction of new brands of appliances helped to increase appliance sales by 6.3 percent, while service revenues and part sales increased by 0.7 percent.

BESCO performed as expected. Operating revenue was up 14.9 percent. While continuing to focus on providing core energy and engineering services, BESCO is expanding its scope by offering integrated control systems for office buildings and high-end residential customers.

The successful consolidated results led the BELCO Holdings Limited Board of Directors, in addition to the normal cash dividend, to declare a 10 percent stock dividend which was paid on December 31, 2002. The dividend paid to shareholders remained at $1.54 annually.

Holdings' share price ended the year at $30.50, up 11.9 percent from the $27.25 posted at the end of 2001. Earnings per share increased to $4.43 from $4.14 in 2002.

"We are very pleased with the results achieved by the BELCO Holdings group in 2002,'' said President and CEO Mr. Garry A. Madeiros. "We have accomplished a number of achievements in 2002 which prepared us for the restructuring of the BELCO organisation beginning January 2003 with the consolidation of 10 departments into five Groups. The objectives are to enhance management bench strength and create an organisation that is responsive, flexible and focused on the customer. The new structure supports our initiative to become a process-driven organisation focused on improving efficiencies and customer satisfaction levels."

"We continue to have high expectations for all of our operating subsidiaries. I thank all of our employees for their consistent hard work, determination and loyalty over the past year."

The Annual General Meeting of BELCO Holdings Limited will be held on Thursday, April 24 at 2:00 p.m. at Bermuda Electric Light Company Limited headquarters, 27 Serpentine Road. All shareholders are invited to attend.