2 Caribbean Utilities Company, Ltd.  2011  Annual Report To Our Shareholders Fellow Shareholders It is our pleasure to report the  financial and operational progress  of Caribbean Utilities Company,  Ltd. (“CUC” or the “Company”)  for the twelve month period ended  December 31, 2011 (“Fiscal 2011”). In spite of the relatively stagnant  economic environment, and  consecutive years without an increase  in sales, CUC was able to improve its  financial performance in 2011. Kilowatt-hour (“kWh”) sales  for Fiscal 2011 were 554.0 million  comparable to 553.8 million for the  twelve months ended December  31, 2010 (“Fiscal 2010”). Warmer  weather, particularly in the three  months ended December 31, 2011,  increased electricity consumption  for that period and helped to offset  reduction in customer demand due to  increased fuel prices and a declining  population. The average temperature  for 2011 was 82.3 degrees Fahrenheit  compared to 81.9 degrees Fahrenheit  for 2010.  Net earnings for Fiscal 2011 were  $20.4 million, representing a 3%  or $0.5 million increase from net  earnings of $19.9 million for the  twelve months ended December 31,  2010 (“Fiscal 2010”). This increase in  earnings was due to lower financing  charges and increased Other Income. In July, CUC successfully closed  on a $40 million private placement  debt financing with terms between  15 and 20 years and very competitive  coupon rates of 4.85% to 5.10%. We  believe the competitive pricing was  as a result of the Company’s strong  balance sheet and credit rating.  However, in September 2011 Standard  & Poor’s lowered its rating of CUC’s  debt to “A-” from “A” as a reflection  of the continued weak economic  environment in the Cayman Islands. After the adjustment for dividends  on the Class B Preference Shares  (“preference shares”) of the  Company, earnings on Class A  Ordinary Shares for Fiscal 2011 were  $19.5 million, or $0.68 per Class A  Ordinary Share, when compared to  $18.9 million, or $0.67 per Class A  Ordinary Share for Fiscal 2010. We are pleased that the Company  was able to maintain an annualized  dividend of $0.66 per Class A  Ordinary Share.  Financial Performance David E. Ritch, OBE, JP Chairman of the Board of Directors J.F. Richard Hew President & Chief Executive Officer