BELCO Holdings Limited Releases 2007 Six-Month Results

Hamilton, Bermuda: September 13, 2007 -- BELCO Holdings Limited announced that consolidated net earnings were $9,789,242 for the first six months of the 2007 financial year compared to $8,355,586 for the same period the previous year. 

Bermuda Electric Light Company Limited results show total kilowatt hours sold for the first six months of 2007 were 2.8 percent ahead of 2006. Residential usage increased 2.8 percent. This increase is largely due to a 2.3 percent increase in the average number of metered connections, approximately 715 households. Residential customer average consumption was slightly higher than 2006, but less than 2005 indicating continued conservation of electricity in response to increased fuel adjustment charges brought about by the high cost of fuel. Usage by large demand customers increased 3.3 percent compared to the same period in 2006, and small commercial usage increased by 1.6 percent. 

Electric revenue increased 3.7 percent, compared with 2006. The increase is due to a 2.8 percent increase in overall kilowatt-hour sales, a 1.50 percent increase in tariff rates granted by the Price Control Commission effective January 1, 2007 and an increase in fuel adjustment revenue from $21,036,626 in 2006 to $21,160,476 in 2007. Fuel adjustment revenue is offset by an identical increase in fuel cost.

Overall operating expenses for the period were up 2.8 percent above the first six months of 2006.  Much of the increase is attributed to Energy Supply and Energy Delivery expenses relating to consultancy fees incurred in the development of plans for future power plant. Depreciation expenses are also higher in 2007 than in 2006 primarily due to capitalization of costs associated with a switchboard facility and the disaster recovery backup facility in the Company's east control room at the end of 2006. 

Bermuda Gas & Utility Company Limited's results for the first six months of 2007 increased 68.5 percent to $758,118 compared to $450,012 in the same period of 2006.  This is primarily due to a 44.7 percent increase in appliance sales attributed to the relocation of the showroom to Church Street which provides easier access for customers. Gas sales are 3.4 percent ahead of last year due to increases in both volume and gas prices.  Service and parts sales have decreased 2.7 percent.   

The Company's share price at June 30, 2007 of $22.50 has appreciate to the 2006 market price of  $38.75, which after considering the 100 percent stock dividend issued on August 31, 2006, would have been $19.38.

"Overall the Company is satisfied with the first six months of 2007. Results for the second half of this year are anticipated to be on target with expectations," said Garry A. Madeiros, BELCO Holdings Limited President and Chief Executive Officer.