Miller and Hay GROSS OPERATING revenue for Cable & Wireless Jamaica (C&WJ) rose by just under $2 billion, but profits showed a more modest rise, in the year ended March 31, 2000.
According to the Group audited financial statements, gross operating revenue topped $18.0 billion in the 12 months, up from $16.7 billion in 1999. Net profit was rose form $3.5 billion in 1999 to $3.8 billion at the end of March 2000.
The news comes as the Ministry of Industry, Commerce and Technology's Office of Utilities Regulation (OUR) is currently reviewing C&WJ's application for a rate increase. The application is expected to be determined by July 25.
This is the last year of rate of return regulation (a return on specified capital employed of 17.5 per cent - 20 per cent). Next year, in line with the deal signed by C&WJ on September 30, 1999, the company's rates will be determined by the price cap methodology.
The long standing dispute with the former Jamaica Mutual Life Assurance Society appears to be near to an end. Trustees of Cable & Wireless' main pension plan, have arrived at a "preliminary agreement" with FINSAC, which took over Mutual Life.
Mutual Life had its services as investment manager terminated and as at March 31, 2000, partial settlement in cash had been received with additional amounts part due in cash and part in property. Agreement regarding the property to be received in settlement is subject to the recommendations of an independent valuation.
Pension contributions during the year for the group aggregated $275,120,000 (1999:$293,293,000).
The main pension plan is now administered by Life of Jamaica, which is also the primary investment manager. Investment management services in respect of defined portions of plan assets are also provided by Prime Life Assurance Company and the company's own treasury.
