Holdings' largest operating subsidiary, Bermuda Electric Light Company Limited (BELCO) returned earnings of $19.2 million in 2000. This represents an increase over 1999 of 5.8 percent, of which 5.3 percent is the result of the benefits surplus from the introduction of new Generally Accepted Accounting Principles requirements for pensions and post-retirement medical benefits, which were effective in January 2000. Holdings' other operating subsidiaries, Bermuda Gas & Utility Company and BELCO Energy Services Company (BESCO), performed well but fell short of the results achieved in 1999.
BELCO performance throughout 2000 was strong with total kilowatt hour sales up 2.4 percent, driven largely by growth in residential consumption. Despite milder summer temperatures, sales in this sector increased at a rate of 3.7 percent. Commercial sales also increased, but at a lower level than 1999.
Bermuda Gas had a good year, although net earnings were down 4.3 percent from 1999. Gas volume fell off by 2.2 percent following the closure of a number of hospitality industry properties the previous year. Appliance sales were up 7.1 percent, although these were offset by increases in service costs and promotional expenses.
BESCO continued to perform well in 2000, but failed to maintain the excellent results achieved during the previous two years. Net earnings dropped off by 30.6 percent as energy service and protection equipment sales declined. A number of new contract were sign late in 2000, and it is expected that these will positively impact BESCO's results during 2001.
Dividends paid per share increased to $1.54 from $1.40 during the fourth quarter of 2000, reflecting the positive results achieved during the year. . Earnings per share increased to $4.46 from $3.45 in 1000.
"We are very pleased with the results achieved by the BELCO Holdings group in 2000,'' said President and CEO Mr. Garry A. Madeiros. "We continue to become a more efficient and effective organisation. We have improved our work procedures, implemented more efficient systems throughout our plant, and overall, achieved more with a declining employee base. These efforts, however, are sometimes compromised by factors that are beyond our control and therefore go unnoticed by our customers. A good example of this is the increasing cost of electricity as a result of rising world fuel prices, in spite of our best efforts to control costs and avoid rate increases, as we have done for the past five years."
"We look forward to another rewarding and challenging year in 2001 and to maintaining the level of results achieved in 2000 and previous years. I thank all of our employees for their consistent hard work, determination and loyalty in achieving such positive results in 2000."
The Annual General Meeting of BELCO Holdings Limited will be held on Thursday, April 26 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 Madree Cross-Musson at 295-5111 ext. 1271.