26 Caribbean Utilities Company, Ltd.  2011  Annual Report Management’s Discussion and Analysis The table  “Quarterly Results” summarises unaudited quarterly  information for each of the eight  quarters ended March 31, 2010  through December 31, 2011. This  information has been obtained from  CUC’s unaudited interim Financial  Statements, which in the opinion of  Management, have been prepared  in accordance with Canadian GAAP.  These operating results are not  necessarily indicative of results for any  future period and should not be relied  upon to predict future performance. Net earnings for the Fourth Quarter  2011 were $5.1 million, a 9% or $0.4  million increase when compared to  $4.7 million for the Fourth Quarter  2010. Operating Income for the  Fourth Quarter 2011 decreased  when compared to Fourth Quarter  2010 due to increased G&A and  Depreciation costs partially offset by  increased Electricity Sales. This change  in Operating Income was offset by a  decrease in Finance Charges and an  increase in Other Income resulting in  an overall increase in earnings quarter  over quarter. After the adjustment for dividends  on the preference shares of the  Company, earnings on Class A  Ordinary Shares for the Fourth  Quarter 2011 were $4.5 million, or  $0.15 per Class A Ordinary Share, as  compared to $4.0 million, or $0.15  per Class A Ordinary Share for the  Fourth Quarter 2010. The Company  calculates earnings per share on the  weighted average number of Class  A Ordinary Shares outstanding. The  weighted average Class A Ordinary  Shares outstanding were 28,523,127  and 28,351,734 for the years ended  December 31, 2011 and December 31,  2010, respectively. After the adjustment for dividends  on the preference shares of the  Company, earnings on Class A  Ordinary Shares for the Second  Quarter 2011 were $5.8 million, or  $0.20 per Class A Ordinary Share,  a decrease of $0.3 million when  compared to $6.1 million, or $0.21 per  Class A Ordinary Share for the Second  Quarter 2010. Net earnings for the three months  ended June 2011 (“Second Quarter  2011”) totalled $5.9 million, a  decrease of $0.3 million, or 5%, when  compared to $6.2 million for the three  months ended June 2010 (“Second  Quarter 2010”). A 3% decline in  kWh sales and higher general and  administration, consumer service and  T&D costs were partially offset by an  increase in Other Income and lower  finance charges for the Second Quarter  2011 when compared to the Second  Quarter 2010. After the adjustment for dividends  on the preference shares of the  Company, earnings on Class A  Ordinary Shares for the Third Quarter  2011 were $6.1 million, or $0.22 per  Class A Ordinary Share, a decrease of  $0.4 million when compared to $6.5  million, or $0.23 per Class A Ordinary  Share for the Third Quarter 2010. Net earnings for the three months  ended September 2011 (“Third  Quarter 2011”), totalled $6.3 million,  a decrease of $0.3 million, or 5%,  when compared to $6.6 million for the  three months ended September 2010  (“Third Quarter 2010”). A 1% decline  in kWh sales and higher general  and administration, transmission  and distribution and finance costs  were partially offset by a decrease in  consumer service and maintenance  costs for the Third Quarter 2011 when  compared to the Third Quarter 2010. Net earnings for the three months  ended March 2011 (“First Quarter  2011”) totalled $3.1 million an  increase of $0.6 million in comparison  to $2.5 million for the three months  ended March 2010 (“First Quarter  2010”) due to 1.5% kWh sales growth  for the period and lower transmission  and distribution and maintenance  expenses, which were partially offset  by higher depreciation expense.  After the adjustment for dividends  on the preference shares of the  Company, earnings on Class A  Ordinary Shares for the First Quarter  2011 were $3.0 million, or $0.11 per  Class A Ordinary Share, an increase of  $0.7 million over the $2.3 million, or  $0.08 per Class A Ordinary Share for  the First Quarter 2010. The President and Chief Executive  Officer (“CEO”) and the Chief  Financial Officer (“CFO”), together  with Management, have established  and maintained the Company’s  disclosure controls and procedures  (“DC&P”), to provide reasonable  assurance that material information  relating to the Company is made  known to them by others, particularly  during Fiscal 2011; and information  required to be disclosed by the  issuer in its annual filings, interim  filings or other reports filed or  submitted by it under securities  legislation is recorded, processed,  summarized and reported within the  time periods specified in securities  legislation. Based on the evaluation  performed over disclosure controls  and procedures, it was concluded  that the DC&P of CUC are adequately  designed and operating effectively as  of December 31, 2011. Disclosure Controls and  Procedures June 2011/June 2010 December 2011/December 2010  Quarterly Results September 2011/September 2010 March 2011/March 2010