Aqualectra has published it's Annual Report 2016.
Whilst undergoing transformation, Aqualectra achieved important successes, seen impressive highlights but also tough challenges.
Financial & Commercial affairs
• Main Achievement
Our main achievement for the year 2016, marking also the closure of a challenging financial turnaround, was pursuing and obtaining a financial rating. In September of 2016, Standard & Poor’s granted Aqualectra an Arating.
The Standaard & Poor’s (S&P) report also stated a ‘stable outlook’ for the Company.
• Recovery Component
The recovery component was initially lowered in April of 2016 and completely eliminated by May 2016.
This led to an average tariff reduction of 8.4% in 2016. We are pleased to report that over the past 5 years, tariffs were averagely reduced by 26%, as efficiency gains achieved through well-balanced decisions of the Board, were passed on to customers.
The year 2016 reports a positive net result before tax of ANG 61.8 million (2015: ANG 68.8 million).
This represents a decrease of ANG 7.0 million (10%) compared to 2015, which is attributable to an increase in Operating Expenses of ANG 18.3 million, partially offset by an increase in Gross Profit of ANG 8.2 million and a decrease in Interest Expenses of ANG 3.1 million.
• Capacity Planning
Late 2016 Aqualectra confronted various challenges in meeting the Island’s energy demand. As part of the annual capacity planning, Aqualectra planned for preventive maintenance tasks for the power plants as well as coordination of these tasks with the other Independent Power Producers (‘IPP’) being CRU (formerly BOO) and the Windfarm. Despite this planning, unexpected breakdowns at both Aqualectra power generating units as well as CRU yielded a shortage in production capacity.
This shortage, together with a low wind regime in 2016 as well as an increased demand, led to a record high 86 brown-outs (load shedding) during 2016.
• Capital Expenditure
We completed the year with a total amount of ANG 43.5 million incurred in Capital Expenditures (’CAPEX’). The main focus was on technology and the distribution grid. The ongoing ERP implementation, the upgrade of SCADA and other smaller investments in technology represent a large portion of the total CAPEX in 2016, which at the end of the year, were still a work in progress.
Find more details and insights about the year in review under the button:
Number of pages 66 • Language English • Country Curacao
Tags: Public finance and tax, tax, curacao, aqualectra production, aqualectra distribution, aqualectra, directeur aqualectra, economie curacao, economy, economy of curacao, curacao economy, minister of finance, minister van financien, financien, finance, government, budget, centrale bank, central bank, central bank of curacao and st. maarten, compliance.