Electricity consumers paid an approximately J$12.5-billion energy bill for fuel used by provider Jamaica Public Service Company (JPS) to power its grid between January and March this year.

The utility bills its fuel charges as a pass-through cost to customers. The current charges came close to doubling the March 2009 quarter’s J$6.8 billion, tracking with the near doubling of world oil market prices within that 12-month period.

World oil is now trading at around US$70 per barrel, trending down from April’s US$85 high, but Jamaica buys on concessionary terms from Venezuela.

For the quarter, JPS, which is majority owned by Asian corporations Marubeni and TAQA, collected just shy of J$20 billion in revenue from which it grossed J$5.9 billion after fuel expenses and payments to its contracted independent power suppliers.

Higher maintenance charges, however, pushed operating expenses five per cent higher to J$2.95 billion, from J$2.8 billion in the comparative quarter, erasing the J$207 million of gains on gross profit.

The surplus from operations, net of larger depreciation expenses, was close to flat at J$1.96 billion. (JPS publishes its earnings in US dollars, which have been converted at a rate of JMD 89.51 for this year’s results, and JMD 88.82 for the 2009 quarter).

Bottom-line profit outperformed the comparative quarter, swinging from a loss of J$142 million to net profit of J$840.7 million – a 693 per cent turnaround.

The company is now valued at about J$68 billion by assets but a substantial J$17 billion of that is in the form of receivables or funds owed by debtors.

RevenueUS$223.2mFuel BillUS$139.9mGross ProfitUS$66.02mEBITUS$21.86mNet ProfitUS$9.39mAssetsUS$757.6mWorking CapitalUS$104.9mNet CashUS$25.55m

Jamaica Gleaner

THE nation’s electricity provider, Jamaica Public Service Company (JPS), earned US$9.4 million ($841 million) net profit after-tax due to a 40 per cent jump in revenues with core expenses remaining flat for the quarter ending March 2010, which reversed the US$1.6 million ($143 million) loss it made in the similar quarter in 2009.

The company’s profit performance resulted from a US$64.8 million jump in revenue over the corresponding quarter in 2009 to US$223.1 million, and only a 4.4 per cent increase in operating expenses to US$32.9 million from US$31.5 million comparatively, according to just-released financials to the Jamaica Stock Exchange.

JPS

JAMAICA Energy Partners (JEP) says it plans to go after the 300-400 megawatts (MW) of installed capacity build out expected in Jamaica over the next five years and has already started discussions with its technology partner — Finnish firm, Wartsila — on how to provide it.

What’s more, Jamaica’s largest private power provider is eyeing expansion into the Caribbean with the Cayman Islands and Haiti topping the list.

JEP plant manager Cecil Gordon (left) and Wartsila Caribbean general manager for services, Marc Tarbox.

JEP plant manager Cecil Gordon (left) and Wartsila Caribbean general manager for services, Marc Tarbox.

“The sky is the limit,” said JEP plant manager Cecil Gordon of expansion plans. “We look at countries that have a need and we are looking at countries like Haiti, because they are poised for development.”

Gordon told the Business Observer that attempts to expand into Cayman were thwarted by the economic downturn but he remains optimistic about regional expansion.

JEP already is expected to deliver an additional 65.5 MW of generated electricity to the national grid by the end of 2011 through its new medium-diesel plant slated for construction in West Kingston, which will bring its total supply to 190 MW. But the demand for an additional 300-400 MW over the next five years projected by the Office of Utilities Regulations (OUR) will largely be met by natural gas-fired plants, in response to a Government initiative to reduce its reliance on petroleum-based fuel for generating electricity.

Wartsila Caribbean general manager for services, Marc Tarbox anticipates little difficulty in converting JEP’s existing plant to burn natural gas, but the cost benefits to be derived from switching the fuel will depend largely on the quality of gas supplied.

“The natural gas grade relates to methan number,” Tarbox explained. “A lower grade gas will require compressor and consumes more internal energy, which means less output to JPS.”

Both Gordon and Tarbox also expressed concern over future supply of liquefied natural gas (LNG) as historical evidence suggests inconsistency.

For its part, however, Wartsila wants also focus on providing back-up to electric grids that are relying more on renewable energy. According to Tarbox, grids require fast responding generating back-ups to replace renewable energy solutions when the natural resource falters.

“The wind does not blow all the time,” he quipped.

Wartsila, a global leader in complete lifecycle power solutions, recently held its Consumer Technical Seminar at the Hilton Kingston Hotel.

Jamaica Observer

The Government has announced it is moving to change the agreement by which the Jamaica Public Service Company Ltd (JPS) is paid for providing street lights across the country.

Robert Montague, state minister with responsibility for local government, said yesterday that the move was intended to ensure that parish councils pay only for street lights that are working.


John Maginley, chairman of the Caribbean Tourism Organisation, addresses delegates at the opening of the 11th Conference on Sustainable Tourism Development. – Photo by Janet Silvera
Janet Silvera, Senior Gleaner Writer

ST MICHAEL’S, Barbados:

The call by Caribbean Tourism

Organisation (CTO) Chairman John Maginley for decisive action to protect the region’s natural assets from climate change has been echoed by geotourism expert Jonathan Tourtellot.
But Tourtellot, editor of National Geographic Traveler, wants more.

“Going green is no longer enough if the Caribbean wants to develop a world-class, sustainable tourism product. The development of tourism that enhances, among other things, the geographical character of a place and the well-being of its residents is the way to go,” he told delegates at the just-concluded Conference on Sustainable Tourism Development in Bridgetown, Barbados.

Both men, advocates of the sustainability of the region’s tourism sector, have urged Caribbean leaders to produce a travel product that will distinguish it from its competitors.

Four-pronged approach

Outlining a four-pronged approach, Tourtellot explained the significance of extending the concept of sustainable tourism 21st-century travellers’ need for naturalness.

“Increasingly, leisure travellers want authenticity, experiences. Quality of place is a selling point,” he told the approximately 400 industry officials and media gathered at the Erskine Sandiford Conference Centre in Barbados from May 9-13.

His suggestion includes identifying and sustaining distinctive features, as well as developing the product and marketing geotourism assets.

The keynote speaker also described the three main categories of modern-day travellers – touring-style travellers searching for destinations’ natural authenticity; rest-and-recreation-seeking travellers; and entertainment-focused travellers, predominantly interested in casinos and fast food rather than architecture and fine cuisine. He suggested tourism planners should be mindful of these submarkets and tailor the sector to cater to all travellers.

Vulnerable to disasters

Tourtellot’s hourlong presentation, titled ‘Sustainable Tourism: Going Beyond Green’, was complemented by Maginley’s call for policymakers to begin bold, new initiatives to protect the region from the impact of climate change.

Reminding delegates that, like other regions in the world, the Caribbean was vulnerable to natural disasters, the CTO chairman said they should do all they could to mitigate the effects of natural occurrences.

“We know what it’s like to have to cope with storms. We know what it feels like to deal with periodic drought and, most recently, we have experienced the trauma of earthquakes here in our region, a phenomenon from which the people of Haiti are only now beginning to recover,” he said.

Maginley, who is also Antigua and Barbuda’s minister of tourism, argued that it was critical to increase the industry’s competitive edge.

“This, after all, is the primary means of sustenance for the vast majority of the citizens of the Caribbean. This means we must produce a superb tourism product that is sustainable and which clearly distinguishes us from our competitors,” he stated.

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