Holdings, which is the investment holding company for Bermuda Electric Light Company Limited (BELCO), Bermuda Gas & Utility Company Limited and BELCO Energy Services Company Limited (BESCO), said the increase was primarily the result of BELCO's performance, led by an increase in electricity sales, combined with a reduction in the number of major engine maintenance overhauls falling due during the six month compared to 1999.
"We are extremely pleased with the results achieved so far this year," Holdings President and CEO Garry A. Madeiros said. "These results are in large part due to a successful and still growing international insurance base that has fueled a very healthy construction industry, which in addition to international business, has contributed greatly to the growth in our economy."
Revenue of electric energy sales is up 12.52 percent from the previous year as a result of higher fuel adjustment revenue and increased sales. Electricity kWh sales were up 4.25 percent for the first six months of the year compared with the same period in 1999. The increase is due to a 3.52 percent increase in commercial or demand sales as new commercial building developments become operational, and increased usage by existing demand customers, as well as an increase in residential kWh sales of 5.05 percent, a result of both increased usage and new residential units.
As a result of fewer major engine maintenance overhauls and the net effect of fuel adjustment costs and revenue, actual electricity operating expenses were down slightly during the first six months of 2000 from the same period in 1999. Fuel efficiency rose from 633 kWhs generated per barrel of fuel in the first half of 1999, to 648 kWhs generated per barrel of fuel for the first six months of 2000. Fuel prices were up 31.17 percent as the average price per barrel of fuel used was $46.16 compared to $35.19 during the first six months of 1999. These higher fuel costs are also reflected in higher fuel adjustment revenues, which offset the impact on net income.
The peak load rose 4.98 percent in the first six months of 2000 over the same period last year to reach a new high of 97,000 kilowatts for the period. This increasing load on our system was the driving force behind our recent plant expansion.
Bermuda Gas continues to achieve solid results with total income up 3 percent over the same period last year. Sales were up 7 percent, with increases in gas sales of 12.3 percent as well as one percent in appliance sales and service. Gross profits from sales were also up 8.46 percent.
Sales from BESCO, now in its fifth year of operation, declined in the first six months of 2000 as a number of major projects were completed. New projects are expected to start in the second half of the year.