A n n u a l R e p o r t
2011
Our Vision
To
become
service
a
world-class
organisation,
energy
providing
superior customer service.
Corporate profile
«
Jamaica Public Service Company Limited ( JPS) is an
integrated electric utility company and the sole distributor
JPS • ANNUAL REPORT 2011
of electricity in Jamaica. The Company is engaged in the
generation, transmission and distribution of electricity,
and also purchases power from five Independent
Power Producers.
In April 2011, Marubeni Corporation entered into a
Purchase and Sale Agreement with Korea East-West Power
(EWP), for joint ownership of majority shares (80%) in the
Jamaica Public Service Company Ltd (JPS). The Government
of Jamaica and a small group of minority shareholders
own the remaining shares.
JPS currently has approximately 575,762 customers
who are served by a workforce of approximately
1,266 employees.
The Company owns and operates: 4 power stations, 8
hydroelectric plants, 43 substations and approximately
14,000 kilometres of distribution and transmission lines.
Along with the provision of electricity, JPS is a key partner
in national development. The company has a vibrant
corporate social responsibility portfolio and makes
significant contributions in the areas of education,
health and sports. The company also has a strong
environmental focus and carries out its operations in an
environmentally friendly manner.
T h e Office o f Utilities R e g u l a t i o n ( O U R ) , is the
independent regulatory agency with responsibility for
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the electricity sector.
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Statement to Shareholders
Board of Directors
Office of the CEO
Management Discussion & Analysis
Performance Highlights
M e e t t h e Te a m s
Directors’ Report
Corporate Data
Operational Statistics
Key Performance Indicators
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JPS • ANNUAL REPORT 2011
Contents
Auditors’ Report
Statement of Financial Position
Statement of Comprehensive Income
Statement of Changes in Shareholders’ Equity
Statement of Cash Flows
Notes to the Financial Statements
Notice of Annual General Meeting
Form of Proxy
Yo u r J P S Te a m
5
Statement to shareholders
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JPS • ANNUAL REPORT 2011
Overview
6
2011 will undoubtedly be remembered as a
JPS and Jamaica. Finally, in December we
year of changes for our shareholders. First
had a change of government administration
there was the strengthening of the shareholder
and with that, shortly thereafter, we would
partnership in July with the arrival of Korea
see the appointment of a new Minister of
EWP as joint majority shareholder. EWP will
Energy and 3 new GOJ appointed Board
certainly help to strengthen the technical
members. Change in general is inevitable,
capabilities of JPS and help to improve the
in our case however, I believe it will help to
strategic development of the Company. In
strengthen us as a company, and we have
November, we had the departure of former
a lot of work to do collectively to improve
President & CEO – Damian Obiglio, who
the energy sector of Jamaica, of which we
provided 5 years of remarkable service to
form a part.
HISATSUGU HIRAI, CHAIRMAN
JPS • ANNUAL REPORT 2011
360 MW Generation expansion project
I believe the first significant step to improving the energy sector
was achieved in December 2011, when the OUR awarded the right
to JPS and its shareholders to build a new 360 MW combined
cycle power plant which will be fueled by natural gas. We believe
that fuel diversification and retooling of our old generation plants
- based on the introduction of the most advanced technology
used in generating systems - are the most important initiatives
to achieving a significantly improved energy sector for Jamaica.
Indeed, this project may be the most important project in the
recent history of Jamaica and the majority shareholders of JPS are
committed to working closely with the Government of Jamaica
to have this project completed by 2015. We remain committed
to changing lives with our energy, and we are confident that this
project will help to materialize a 30% to 40% reduction in the
cost of energy in Jamaica, thereby acting as a catalyst for further
growth and development of the economy! We are also confident
that this will result in Jamaica’s energy cost being competitive in
the Caribbean region.
Increased use of Renewable Energy
We understand that one of JPS’ important missions is to
proactively apply the use of renewable energy. In the meantime,
we are moving full speed ahead with the development of our
6.3 MW hydroelectric power plant at Maggotty, which has no
6.3 MW hydroelectric
power plant at Maggotty in
New
progress, expecting to reduce
generational cost
below U.S.
13¢ per kWh.
carbon dioxide from generation and will be providing power to
the grid at a generation cost below U.S. 13¢ per kWh. We now
have access to more than 40 MW of wind capacity in Jamaica
and 22 MW of hydroelectric capacity, which is impressive by
international standards considering this represents more than
7% of the total generation capacity available in Jamaica. Many
first world countries struggle to even achieve 3% capacity available
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Statement to shareholders cont’d
in the form of renewable energy. We are confident that when
the OUR launches the next RFP to attract industrial scale renewable
projects, that Jamaica will be able to achieve 10% capacity
being available from relatively low cost renewable energy power
plants. We will certainly be bidding on such new renewable
energy projects as we look to complete our analysis on two such
projects, which we believe can be materialized at a relatively low
cost of generation.
Loss reduction activities
JPS • ANNUAL REPORT 2011
Our effort in the fight against the theft of electricity continues
and this marks the second year in a row where we have
invested more than US$25 million in this campaign. We continue
with commercial customer audits and the introduction of smart
meters for all large commercial and industrial customers. To
date, approximately 4,000 smart meters have been deployed
covering our largest customers that represent approximately
30% to 40% of our energy sales. By the end of 2012, we will have
deployed smart meters covering the consumption of our large
commercial customers who collectively account for 50% of our
energy sales. Additionally, we have invested in replacing aged
electro-mechanical meters and hope to replace approximately
50,000 (or 8% of the population) by the end of 2012. Thirdly,
we have intensified our residential customer audits and raids
in communities with high losses, where possible, but we were
greatly hindered in this effort during 2011 due to the significant
customer resentment and in part due to security concerns during
the pre election period in the last two months of 2012. Despite
these challenges, we conducted more than 100,000 audits and
investigations during 2011. However, our greatest hope rests
with the introduction of smart meters and a new anti-theft
network that we are rolling out in communities in which it is
historically difficult to do business. We implemented about
10,000 such solutions by the end of 2011, which included
providing financial assistance to rewire the homes of such
customers. We hope to start rolling out 10,000 solutions per year,
but this process is quite tedious and difficult community work,
as it requires significant human resources and presents serious
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security and logistical challenges. As such, we hope to improve
our collaboration with the relevant government authorities to
reduce the challenges in this area.
Statement to shareholders cont’d
Operational performance
The hard work in the area of loss reduction activities resulted in
a reduction in total system losses from 23.0% in 2010 to 22.3% in
2011. While slightly below our original target, and substantially
below the revised regulatory target, this is commendable given
the significant socio-economic challenges experienced during
2011, which included a 20% increase in the cost of electricity
(from U.S. 30¢ to 36¢ per kWh) as a result of the significant
increase in world oil prices during 2011. Sadly, the new regulatory
target of 17.5%, as of July 2011, will stretch our capabilities and
JPS • ANNUAL REPORT 2011
we have much more work to do if we are to even come close.
At the same time, we managed to improve the heat rate performance
for the year by approximately 1% achieving a heat rate of 10,121
kj/kWh compared to 10,183 in the previous year. This represents
the lowest heat rate in the history of the country and demonstrates
our collective effort (along with the IPPs) at improving our use of
fuel to produce each kWh of electricity. This is a most important
efficiency measure when one considers that fuel now represents
more than 67% of the total cost of electricity.
Despite the operational improvements noted above, I believe
significant efforts must now be focused on reducing the cost
of electricity for the people of Jamaica. There is no doubt in my
mind that this is a first order priority for JPS, as our company
will only grow in an economy that is growing. I wish to assure
our customers, our shareholders and all other key stakeholders,
that, this will be the most important objective of 2012 and we
believe the advancement of the new 360 MW project will be one
of the key initiatives to realizing this objective.
In closing, while this year was not the most successful in terms
of financial results, I believe we have finally put together a team
that is capable of transforming the energy landscape in Jamaica
for the benefit of all. Accordingly, I look forward to the future
with great confidence and optimism, with the certain knowledge
that our strategic plans will lead to a stronger company and a
better Jamaica!
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Hisatsugu Hirai
Chairman
JPS • ANNUAL REPORT 2011
Board of Directors
with President and ceo
«
seated in front
standing left to right
• SANG KIE CHO
(APPOINTED JULY 15, 2011)
• MR. FITZROY VIDAL
(APPOINTED FEBRUARY 7, 2012)
• KELLY TOMBLIN
PRESIDENT AND CEO
• PROFESSOR EVAN WINDSOR DUGGAN
(APPOINTED FEBRUARY 7, 2012)
• HISATSUGU HIRAI
CHAIRMAN (MARCH 15, 2011)
• CATHRINE KENNEDY
(APPOINTED FEBRUARY 7, 2012)
• PROFESSOR GORDON SHIRLEY
(APPOINTED FEBRUARY 7, 2012)
• YUNG JOON PYO
(APPOINTED JULY 15, 2011)
• HON. CHARLES JOHNSTON C.D.
• SEIJI KAWAMURA
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• MASAO IMAZATO
ALTERNATE DIRECTOR (APPOINTED MARCH 30, 2012)
JPS • ANNUAL REPORT 2011
JOHN RACHFORD
HON. BEVERLEY LOPEZ
TOMOFUMI FUKUDA
(APPOINTED MARCH 15, 2011)
(RESIGNED JANUARY 20, 2012)
(RETIRED AS CHAIMAN OF THE
(RESIGNED JULY 15, 2011) BOARD AND DIRECTOR MARCH 31, 2011)
RUSSELL HADEED
(RESIGNED FEBRUARY 7, 2012)
DENNIS MORGAN
(RESIGNED FEBRUARY 7, 2012)
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GLENFORD WATSON
(RESIGNED FEBRUARY 7, 2012)
MASAYUKI OMOTO
(RESIGNED JULY 7, 2011)
JPS HEAD OFFICE
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JPS • ANNUAL REPORT 2011
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JPS • ANNUAL REPORT 2011
office of the ceo
LEFT TO RIGHT: LEISA BATISTE-WHYTE, HERVE PERRIN, SANGEET DUTTA, VALENTINE FAGAN,
KELLY TOMBLIN, ALDINGTON-DEAN SMITH, DAN THEOC, KATHERINE FRANCIS, RICARDO RENNALLS.
HERVE PERRIN
SANGEET DUTTA
VALENTINE FAGAN
KELLY TOMBLIN
ALDINGTON-DEAN SMITH
DAN THEOC
KATHERINE FRANCIS
RICARDO RENNALLS
«««
«««
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LEISA BATISTE-WHYTE
HEAD, INTERNAL AUDIT
VICE PRESIDENT, GENERATION
VICE PRESIDENT, LOSS CONTROL AND REVENUE MANAGEMENT
VICE PRESIDENT, NEW GENERATION
PRESIDENT AND CEO
DIRECTOR, FINANCIAL PLANNING AND REPORTING
CHIEF FINANCIAL OFFICER
GENERAL COUNSEL AND CORPORATE SECRETARY
VICE PRESIDENT, TRANSMISSION AND DISTRIBUTION
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Management Discussion and Analysis
YEAR ENDED 31 DECEMBER 2011
«
JPS • ANNUAL REPORT 2011
Results of Operation
Operating revenues ($1,153 million)
Based on the foregoing, the company
increased by 22% over 2010 primarily as a
recorded a net profit after tax of $34.3
result of the increase in global oil prices and
million for 2011, representing a $5.5 million
its impact on the cost of fuel; and partly due
or 14% decline compared to 2010. This
to the 1% increase in energy sales volume.
reflects a ROE of 8.5%, as compared to an
The cost of sales ($846 million) increased
by 30% over 2010 for the same reasons
described above.
As a result, there was a $15 million increase
in the gross profit, although the gross profit
margin fell from 31% to 27% due to the
increased proportion of fuel costs, on which
the company does not make any margin.
Operating expenses ($169 million) increased
by 11% over 2010, primarily as a result of
increased bad debt expense over 2010; and
partly due to increases in utilities, office &
other expenses and third party expenses.
The EBITDA fell marginally from $139 million
in 2010 to $138 million in 2011, a decline
of 1%.
Liquidity and Capital Resources
The company had a strong liquidity position
at December 31, 2011, with current and acid
test ratios of 1.71 and 1.41 respectively. This
represents a strengthening of the liquidity
position relative to 2010, where the ratios
were 1.60 and 1.33 respectively. Of note,
cash flows from operating activities ($91
million) were more than sufficient to
fund investing activities during the year
($75 million).
Despite increasing its gearing ratio from
44% in 2010 to 49% at the end of 2011, JPS
lowered its average cost of borrowing by
1% and improved its interest cover from
3.6 to 3.9 times. JPS has adequate lines
Net finance costs ($39 million) increased by $8
available and funding in place to meet its
million or 25% relative to 2010. The increase
funding requirements for the next year.
was primarily due to the devaluation of the
J$ during 2011 and the resulting increase
in foreign exchange losses ($10.5 million).
This was offset by the $2.7 million reduction
in net interest expenses.
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ROE of 10% for 2010.
JPS continues to invest heavily in renewing
its generation, transmission & distribution
assets. As in prior years, capital expenditure
continues to outpace the net income
earned for the year, reflecting the necessity
Other expenses decreased by $6 million
to reinvest in the business to drive continuous
compared to 2010, primarily as a result of
improvement in operational efficiency. The
non-recurring redundancy costs in 2010
Capital expenditure in 2011 amounted to
(refer to note 23(b) for further details).
$70 million up from $59 million in 2010.
management discussion and analysis cont’d
Risk management
Overview
JPS has a comprehensive risk management
principally from the company’s trade
framework to monitor, evaluate and manage
receivables, which is stated net of an
the principal risks assumed in conducting
allowance for doubtful balances.
market and operational risks. Risk is managed
through a framework of principles, organizational structures, and risk measurement
and monitoring activities that are aligned
to the company’s activities.
The Board of Directors, in managing the business
of the company, oversees the company’s
risk management framework. Key management has responsibility for monitoring the
company risk management policies in their
specified areas and report quarterly to the
Board of Directors on their activities.
As part of its management of credit risk, the
company requires account deposits from
certain customers. Additionally, management has processes in place for the prompt
disconnection of services and recovery of
amounts owed by, defaulting customers.
The company establishes an allowance
for impairment losses that represents its
estimate of incurred losses in respect of
trade and other receivables. The main
component of this allowance is a specific
loss component that relates to individually
significant exposures. The loss allowance
The company’s risk management policies
is determined based on historical payment
are established to identify and analyze the
statistics for similar financial assets and
risks faced by the company and to help
an assessment of the debtor’s ability to
guide the strategic planning and initiatives
settle debt.
of the company. This process also helps to
set appropriate risk limits and controls and
facilitates regulator monitoring of same.
Risk management policies and systems are
reviewed regularly to reflect changes in
market conditions. The company, through
training, management standards and
procedures, aims to develop a disciplined
and constructive control environment, in
which all employees understand their roles
and obligations.
Credit Risk
Credit risk is the risk of financial loss to
the company if a customer or counterparty
to a financial instrument fails to meet
its contractual obligations, and arises
JPS • ANNUAL REPORT 2011
its activities, which include credit, liquidity,
Liquidity Risk
Liquidity risk, also referred to as funding risk,
is the risk that the company will encounter
difficulty in raising funds to meet commitments associated with financial instruments.
Liquidity risk may result from an inability to
sell a financial asset quickly at, or close to,
its fair value. Prudent liquidity risk management implies maintaining sufficient
cash and marketable securities, and the
availability of funding through an adequate
amount of committed credit facilities.
The company’s approach to managing
liquidity is to ensure, as far as possible,
that it will always have sufficient liquidity
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management discussion and analysis cont’d
to meet its liabilities when due, under
The maturity profiles and interest rates
both normal and stressed conditions,
of the company’s long-term loans are
without incurring unacceptable losses
disclosed in note 18, the details of bank
or risking damage to its reputation. The
overdraft and short-term loans in notes 8
company aims to maintain adequate fund-
and 9, and the details of customer deposits
ing lines available, as well as maintaining
in note 17. Bank overdraft is subject to
prudent cash resources in the appropriate
interest rates fixed in advance, which
currencies to meet its obligations.
may be varied by appropriate notice by
the lenders.
JPS • ANNUAL REPORT 2011
Market risk
Interest bearing financial assets relate
Market risk is the risk that changes in
to cash and cash equivalents and
market prices, such as interest rates, foreign
repurchase agreements.
exchange rates and equity prices that
affect the value of the company’s assets,
the amount of its liabilities and/or the
company’s income. Market risk arises in the
company due to fluctuations in the value of
assets and liabilities.
The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while
optimizing the return on risk. The nature of
the company’s exposures to market risks
and its objectives, policies and processes
for managing these risks have not changed
significantly over the prior period. For each
of the major components of market risk the
company has policies and procedures in
place which detail how each risk is managed
and monitored. The management of each of
these major components of market risk is
addressed below.
Foreign currency risk:
Foreign currency risk is the risk that the value
of a financial instrument will fluctuate due
to changes in foreign exchange rates.
The company incurs foreign currency risk
primarily assets that are denominated in a
currency other than the United States dollar.
The currency giving rise to significant foreign
currency risk is primarily the Jamaica dollar
(J$), as it relates to the settlement risk on
accounts receivables.
The company manages foreign exchange
exposure by maintaining adequate liquidity
resources in the appropriate currencies.
Operational risk:
Operational risk is the risk of direct or indirect
loss arising from a wide variety of causes
Interest rate risk:
Interest rate risk is the risk that the value
of a financial instrument will fluctuate due
to changes in market interest rates.
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The company contracts financial liabilities
at fixed or floating interest rates. These
primarily relate to loans, customer deposits,
certain trade payables and bank overdrafts.
associated with the company’s processes
including regulatory risk, personnel, technology and infrastructure, and from external
factors other than credit, market and liquidity
risks such as those arising from legal and
regulatory requirements, generally accepted
standards of corporate behaviour and force
majeure events.
management discussion and analysis cont’d
The company’s risk management framework guides its operational risk-taking
activities so as to balance the avoidance
of financial losses, personnel injuries and
damage to its reputation with overall cost
effectiveness and to avoid control procedures
that restrict initiative and creativity.
These risk management activities include
the following:
• the management and control of significant
JPS • ANNUAL REPORT 2011
operational risks by each department;
• active involvement of the independent
internal audit department in assessing
significant risks identified; and
• the use of insurance to ensure that assets
and personnel are adequately covered.
A critical tool used in the management of
operational risk is Insurance. The company
ensures that the assets and personnel are
adequately covered through a wide range
of insurance policies, covering property all
risk and liability exposures. The regulatory
tariff mechanism also contributes to the
adequacy of our asset coverage by means of
provisions for damage to our transmission
and distribution assets and certain force
majeure occurrences.
The primary responsibility for the development and implementation of controls
to address operational risk is assigned to
senior management within the company.
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Performance Highlights
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Setting the Stage
In 2011, the stage was set for the transformation of Jamaica’s
energy sector, with the Office of Utilities Regulation (OUR)
approving a proposal from JPS and its shareholders to construct
a new 360 megawatt power plant, which is expected to reduce
electricity rates by at least 30 percent when completed in 2015.
JPS also achieved significant efficiency and service reliability
gains, as a result of capital investments of over US$69M in
JPS • ANNUAL REPORT 2011
its operations.
On the other hand, in an environment already characterized by
sluggish energy sales as a result of high fuel costs, the Company
experienced significant push-back from customers to an initiative
to replace old electro-mechanical meters with digital meters. An
OUR audit confirmed that the new meters were functioning as
expected. However, the negative reaction to the digital meters,
along with rising oil prices, fuelled a spiraling of complaints
about high bills and less than ideal service quality. In response,
JPS used the opportunity to implement a range of initiatives to
improve customer service delivery and build stronger
relations with its various stakeholder groups.
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Performance highlights cont’d
New Partnerships
In April 2011, JPS welcomed a new Chairman, Mr. Hisatsugu Hirai,
who took over from Mr. Tomofumi Fukuda.
In the same month, majority owners of JPS, Japan-based Marubeni
Corporation, entered into a Purchase and Sale Agreement with
Korea East-West Power (EWP), for joint ownership of majority
shares in JPS. The transaction, which was finalized in July 2011,
represented the transfer of a 40% interest in JPS to EWP. The
Government of Jamaica retains approximately 20% of the shares
JPS • ANNUAL REPORT 2011
in the Company.
President & CEO, EWP, GIL GU LEE (left)
shakes hands with General Manager,
Overseas Power Project, MARUBENI,
YOSHIHIRO MEGATA, while former
Minister of Mining and Energy, HON.
CLIVE MULLINGS looks on. The occasion
was the signing of the new partnership
agreement
between
MARUBENI
Corporation and Korea East-West Power.
Poised for Expansion
With rising oil prices being among the primary contributors
to relatively high electricity rates, it has been recognized that
Jamaica urgently needs to install new base-load capacity and
diversify its fuel sources. It was only natural, therefore, that JPS
and its shareholders responded without hesitation to a Request
for Proposals from the Office of Utilities Regulation (OUR) for
the construction of new generating capacity.
OUR approves proposal for 360MW plant
In April, through collaboration with Marubeni and EWP, JPS
submitted a proposal for the construction of a new plant using
Liquefied Natural Gas (LNG), which the Jamaican Government
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Performance highlights cont’d
had indicated was the preferred fuel alternative to reduce
the country’s dependence on oil for electricity generation.
This was the only response to the OUR’s Request for Proposals.
After months of analysis, in December 2011, the OUR
announced its approval of the JPS shareholders’ proposal to
spend over US$620 Million to build 360 megawatts of new
generating capacity.
JPS Chairman, Mr. Hisatsugu Hirai, welcomed the OUR
announcement. “We have given a commitment to reduce
electricity rates for the customers of JPS, and the investment
JPS • ANNUAL REPORT 2011
in the new power plant will make that commitment a reality.
With the construction of this plant, Jamaicans will see a
reduction of over 30% in their electricity charges because
of the cheaper cost of natural gas, compared to oil, and
the greater efficiency of the new generating unit,” he said
in his response.
JPS Board Director for EWP, Mr. Sang Kie Cho, indicated that
the new project will represent a significant step forward for
Jamaica. “This will be the largest single investment in Jamaica
by any company. It is an indication of our commitment to
Jamaica’s long-term development. The power plant project
will stimulate the economy both directly and indirectly.”
The new natural gas-fired plant is expected to be commissioned
into service in early 2015.
New hydroelectric plant
JPS took another step toward the addition of more renewable
energy to the grid, with the development of a new 6.3
megawatt hydroelectric power plant in Maggotty, St.
Elizabeth. In December 2011, the Company signed a
contract worth over US$26M with Kier Construction Limited,
for the design, engineering and construction of the new
hydro plant, which will be the largest hydroelectric project
undertaken in Jamaica since independence.
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Kier Director, TIM CORRIGAN (seated left) and JPS Chief
Financial Officer, DAN THEOC, sign the US$26M contract
for the construction of the 2nd Maggotty Hydroelectric
Power Plant. Looking on are (standing left – right) Kier Area
Manager, Caribbean & South America, STEVE MILNER and
JPS Chairman, HISATSUGU HIRAI.
Performance highlights cont’d
Serving Customers Better
Our service delivery was the focus of much attention in 2011,
with several organizational initiatives implemented to improve
the way we serve customers. Responding to feedback, the
Company established a Customer Advocacy Committee to assist
in resolving difficult customer service issues. Additionally, an
interim Customer Service Improvement Project Committee was
formed, as part of efforts to urgently address and eliminate some
of our challenges and improve the overall customer experience.
JPS • ANNUAL REPORT 2011
During 2011, the Company also pursued an initiative to expand
its database of customer cell phone numbers and email
addresses in order to increase the number of customers
benefitting from bill payment reminders via text message, and
the delivery of bills via email. The Company took steps to reduce
the time customers needed to spend in the offices, and also
introduced the ‘mobile office’, which saw customer service teams
taking our service to customers in their communities.
Regional Customer Care Manager,
PATRICIA YOUNG (centre), assists a
customer in Christiana, Manchester,
at the mobile customer care office.
RUTHLYN JOHNSON, Corporate
Communications Officer, helps a
customer to understand the amount
of electricity each appliance uses,
during a customer outreach road
show in Ocho Rios.
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JPS • ANNUAL REPORT 2011
Improving Efficiency and Service Reliability
In 2011, JPS achieved its best Heat Rate ever, which is an indication
that the Company is improving the efficiency with which it
converts fuel to electricity. The Heat Rate of 10,121kJ/kWh
was the result of continuous investment in maintenance and
overhauling of the generating units to ensure that they perform
at their best. Major maintenance works were carried out on units
at JPS’ Old Harbour Bay and Hunts Bay Power Stations, where
most of the Company’s base load capacity is located. Additionally,
significant work was done on one of the diesel engines at the
Rockfort Power Station and at the Rio Bueno B and Lower White
River Hydro Stations to ensure improved performance.
JPS invested over US$69M in capital expenditure to ensure
continuous improvement in service to customers in 2011. More
than one-third of this amount went directly into improving the
reliability of the transmission and distribution network. The focus
was primarily on structural integrity and system security. To this
end, several aged 69kV oil circuit breakers were replaced with
new SF6 circuit breakers; the underfrequency protection scheme
was upgraded; and the Supervisory Control and Data Acquisition
(SCADA) visibility was expanded to all substations.
Following an analysis of the root cause of failures on the five
worse performing distribution feeders, several measures were
put in place to address the challenges identified. These included
the replacement of over 10,000 porcelain insulators, with polymer
insulators, to limit outages due to lightning and equipment failure.
22
The Company also increased the use of technology, as part of
efforts to improve the effectiveness of its problem identification
and resolution processes. In order to reduce forced outages and
the cycling of feeders, the Inspector 110 Ultra Sonic Leakage
Current Detector was introduced to help identify and correct
Performance highlights cont’d
LINEMAN AT WORK AT DUSK
failing insulators. Additionally, fault indicators were installed
JPS • ANNUAL REPORT 2011
to assist emergency crews to quickly identify problems on the
overhead lines during patrol.
JPS Linemen Restore Power
To Bahamians In Record Time
While we sought to improve our own operations, we still found
time to reach out to our Caribbean neighbours in their time of
need. Following the passage of Hurricane Irene in August in the
Bahamas, two teams of seven linemen responded to the call for
assistance with restoration efforts. Between September 4 and
25, the linemen carried out restoration efforts on Cat Island
which is on the coastline and has a population of approximately
2,000 persons.
Cat Island’s power network was completely devastated leaving
the residents without power for days when the JPS team arrived
on the island. Our team’s restoration efforts included general
line work and repairs, along with the replacement of broken
poles and damaged conductors.
After three days of work the first crew managed to restore 10
miles of power on the ravaged island. By the time the team
completed its two weeks of restoration efforts, 30 miles of power
was restored and all the major towns that had been without
power since the hurricane were up and running again. The second
team went in and completed the rest of the work resulting in
100% of the island being restored by the time the men returned
to Jamaica.
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JPS • ANNUAL REPORT 2011
Performance highlights cont’d
The first team of two JPS Linemen teams returning
The second JPS Lineman team returns from assisting residents of Cat
from Cat Island, Bahamas where they helped restore
Island, Bahamas, with their post Hurricane Irene restoration effort. They
electricity after the ravages of Hurricane Irene. The
are (L-R) CRAIG DUNCAN, CHRISTIPHOR WEST, JERMAINE WILLIAMS,
team members are: (L-R) NIGEL GRIFFITHS (Team
MONELETO JONES, TEX KNIGHT (Team Leader), VALENTINE BROWN
Leader), DANVIL HENRY, COURTNEY JARRETT,
and MARLON BURTON.
RALSTON DICKENSON, BRIAN JONES, ANDRAIN
WILLIAMS and DONOVAN EBANKS.
Linemen shine at International
Lineman Rodeo in Kansas, USA
In October 2011 over 700 of the best linemen from across the
United States, Canada, Jamaica, United Kingdom and other parts
of the world competed for the honor of being called World Champion
at the Annual International Lineman’s Rodeo. It was the 28th
staging of the event and 172 Journeymen Teams (teams of 3)
and 210 Apprentices went head to head for the coveted title.
For Team JPS it was a return to the rodeo field after a five year
hiatus from the competition. At the end of the day, where
participants competed in 5 event categories, O’Neil Archer of St.
Catherine ranked 3rd Overall in the competition, while Orville
Black from St. James, placed 1st for pole climb, and Denton
Williams from Portland had the third fastest time in the pole
climb event.
24
JPS • ANNUAL REPORT 2011
Proud Winners at the International Lineman’s Rodeo in Kansas, USA: (L-R) DENTON WILLIAMS
(3rd in pole climb); ORVILLE BLACK (1st in pole climb) and O’NEIL ARCHER (3rd Overall Lineman).
Fighting System Losses
System Losses continued to be a stubborn challenge for JPS in
2011. The Company spent approximately US $30M in capital
and operating expenditure during the year, on a combination of
strategies to address the problem. These included: the installation
of the Residential Advanced Metering Infrastructure (RAMI)
in several communities, large account audits, intelligence and
analysis, strengthening system integrity and controls, public
engagement, and criminal investigations and prosecutions. These
strategies were successful in marginally reducing the level of
losses being experienced by the Company, which ending the year
with losses at 22.3 percent, down from 23.0 percent.
25
Performance highlights cont’d
Investing in Jamaica’s Youth
In 2011, JPS demonstrated its ongoing commitment to support
the development of Jamaica’s youth through education and
sports. In February, the second JPS Homework Centre was
officially opened by the former Prime Minister, Honourable Bruce
Golding. Located in Denham Town, Kingston, the centre is outfitted
with 23 computers and provides a quiet place for students to do
homework, study and learn to use the computer. JPS has another
homework centre in the Old Harbour Bay community, close to
JPS • ANNUAL REPORT 2011
its largest power plant.
Former Prime Minister, HON. BRUCE GOLDING,
cuts the ribbon at the official opening ceremony
of the JPS Homework Centre, while former JPS
Chairman, TOMOFUMI FUKUDA (2nd left) and
Vice Principal of Denham Town Primary School,
AGUSTUS MCLEAN look on.
Former President and CEO, DAMIAN OBIGLIO
(right), looks on with delight at the work being
done in the JPS Homework Centre by these
young boys. Also sharing in the moment are:
(L-R) Former Member of the JPS Board of Directors,
BEVERLEY LOPEZ; Past Student and collaborator
in establishing the Centre, JEFFREY REID; and
Retired Teacher from Denham Town Primary,
DORETH MCFARLANE.
26
Performance highlights cont’d
As part of our efforts to help Jamaica reach its Vision 2030 goals
for education, particularly in the area of science and technology,
JPS continued to host the Science and Technology Expo and to
partner with local universities to provide grants for students. The
Company’s support for education also included the provision of
meals for over 20,000 young children between 3 and 6 years,
JPS • ANNUAL REPORT 2011
through our Early Childhood Nutritional Support Programme.
The proud sixth form science team from Spaldings
High School takes home the prize for Best Overall
Display, Top Tertiary Project and Most Innovative
Display for their project entitled, “Fish Scale
Secrets”, which showed how fish scales can be
used to make plastic, paper glue and jewellery. The
science team members are (L-R): ORAINE CAMPBELL,
DORAN BROWN, JEVON GIVANS, RAJAE FAGAN
and DEMARI BROWN (partially hidden). Sharing
in the moment are (L-R): Executive Director of
the Scientific Research Council, DR. CHADWICK
ANDERSON, JPS Chairman, HISATSUGU HIRAI,
teachers - PAULETTE PEART, Vice President of
Spaldings High, DAWN CHAMBERS (partially
hidden) and DIANE MCKENZIE.
ERIC SALKEY, a beneficiary of the Company’s tertiary
grant, who commenced his studies in medicine at UWI
in September 2011, shares a light moment with JPS
Chairman, MR. HISATSUGU HIRAI, Chairman.
27
Performance highlights cont’d
CHANELL PUSEY of Rollington Town
Primary, explains her inspiration for
the design of her prize-winning poster
to JPS Key Account Manager, FABIAN
LYEW. CHANELL won first prize in the
JPS sponsored Poster Competition
JPS • ANNUAL REPORT 2011
coordinated by the Jamaica Hotel &
Tourist Association.
JPS Community Relations Officer,
OMAR THOMAS (left) congratulates
the newest additions to the JPS
Honor Roll at the DONAD QUARRIE
High School: (left to right) SHELDON
WHITTAKER (8th grade), CRYSTAL
SCALE (9th grade) and TAMIA REID
(9th grade). Sharing in the moment is
Principal of DONALD QUARRIE High
School, REFORD HINES (right), and
guidance counselor at the school,
ROSE REID (back).
28
Performance highlights cont’d
Summer Employment Programme
As part of its ongoing community outreach, the Company
facilitated the employment of 130 students during the summer
holidays, to assist them to earn back-to-schools funds, as well
as to give them the benefit of work experience. Some of the
summer employees worked at JPS locations, while others were
sent to organizations that we collaborate with, including, but
not limited to the Sir John Golding Rehabilitation Centre, the
Kingston Public Hosptial, Dispute Resolution Foundation, and
JPS • ANNUAL REPORT 2011
the Bustamante Children’s Hospital.
Sports Involvements
Recognizing the unifying power of sports, especially at the
community level, JPS remained an ongoing sponsor of community
football, track and field and netball. The Company also provided
support for these sporting events at the national level.
Former JPS President and CEO, DAMIAN OBIGLIO examines a team shirt. Sharing in the moment are: (L-R) ANDREI
ROPER (Supreme Ventures); LEON MITCHELL (Jamaica National); CAPTAIN HORACE BURRELL, (Jamaica Football
Federation) and MOST. HON. EDWARD SEAGA (Chairman, Premier League Club Association).
29
Performance highlights cont’d
OMAR THOMAS, Community Relations
Officer (2nd left front), shares in the
excitement with the 2011 JPS Old Harbour
Bay League Champions, Flaky Ice.
Sharing in the moment are: President of
the St. Catherine Football Association,
JPS • ANNUAL REPORT 2011
PETER REID (far left) and Member, Old
Harbour Bay Community Development
Association, ANDREW GORDON.
Teams get ready to play in
the JPS Western Netball
Developmental Leagues
30
Performance highlights cont’d
Powering Jamaica’s Businesses
JPS supported the “Meet Jamaica 2012” initiative, aimed at ensuring
that small and medium sized Jamaican businesses had a presence
at the International Food Event, one of Europe’s largest food
festivals. The initiative was part of the thrust from the Private
Sector Organization of Jamaica (PSOJ) and Jamaica Promotions
(JAMPRO), to ensure that Jamaica benefits from opportunities
available before, during, and after the London 2012 Olympics.
JPS sponsored 12 organisations to the tune of £$20,000
JPS • ANNUAL REPORT 2011
(J$2,771,560), which enabled them to showcase Jamaican food,
drink and culture at this popular event.
The participating companies were selected by JAMPRO because
of the high quality of their products, and the expected benefits
to accrue from their participation in the International Food
Event. They were: Honey Bun Bakery, Associated Manufacturers
Limited, Kountry Delite, FIWI Foods, Tourejon Food Processors,
Mavis Bank Coffee, Central Food Packers, Honey Kist, Worthy Park
Estate, Pedro Plains, Canco Limited, and Local Spice.
31
Former JPS President & CEO, DAMIAN OBIGLIO, and MSME Alliance President,
DR. ROSALEA HAMILTON in discussions about the way forward for small and
medium sized enterprises.
Performance highlights cont’d
Making Connections Work
In September 2011, the Government’s development and promotions
agency, JAMPRO, introduced a targeted business component
to the usual tourism trade fair offering, at Jamaica Product
Exchange (JAPEX), with JPS’ help as a sponsor. Over a two-day
period, the business matchmaking event connected local
hoteliers with over 50 local producers of a range of goods and
services including honey, processed foods, agricultural produce,
furniture, craft and apparel.
JPS • ANNUAL REPORT 2011
Recognizing the critical role of small businesses in Jamaica’s
economic development, and the challenges faced by many, in
2011 JPS gave a commitment to the Micro, Small & Medium
Sized Enterprises Alliance (MSME) to provide Energy Management
Training to enable this vibrant sector to improve its overall
efficiency. This commitment formed part of the Company’s
ongoing support for various business groups, including the
Small Business Association of Jamaica, the Jamaica Hotel and
Tourist Association, and the Jamaica Manufacturers’ Association,
among others.
Looking Ahead
Despite its challenges, 2011 presented JPS with several opportunities
for new beginnings. With the approval of the plans for the new
natural gas-fired 360-megawatt power plant, the Company has
a chance to participate in the far-reaching changes anticipated
in the local energy landscape. The new technology and fuel
diversification that the new plant will bring are expected to
address the single most critical issue on customers’ minds – the
cost of electricity. JPS has committed to Jamaica, and stands
ready to play its part in bringing down energy costs and helping
the country to realize the exciting possibilities of the future!
32
R I C H A R D P E A RT, Power System Con trol l er, monit ors t he grid from t he Compa ny ’s Sy s t e m Cont rol Ce nt re .
Meet the teams
CANDICE BRYAN
Project Manager
«
«
SEATED AT FRONT L-R:
CAPHANNE MARCH
Manager, Expansion Administration
STANDING L-R:
CORINE MCCALLA
Administrative Assistant
VALENTINE FAGAN
Vice President, New Generation
CLAVA MANTOCK SNR.
General Manager, Business
Support and Administration
ALSTON WATSON
Manager, Expansion Projects
RICHARD GORDON
Project Planning and Development Analyst
SHERRICE LYONS
Director, Commercial Services
«
SEATED AT FRONT L-R:
New Generation
SANGEET DUTTA
Vice President, Loss Control
and Revenue Management
STANDING L-R:
JAY MCCOSKEY
Director, Customer Operations
WILF TALBOT
Director, Customer Care
DESMOND JONES
Director, Projects, Audit and Metering
RAMSAY MCDONALD
Director, Revenue Management
GARTH MCKENZIE
Director, Commercial Process Control
LOSS CONTROL AND customer operations
Meet the teams cont’d
« L-R:
HORACE MESSADO
Financial Controller
DAN THEOC
Chief Financial Officer
SHARLENE CHUNNU
Manager - Finance and Insurance
FINANCE
CARLTON FRANCIS
Manager, Treasury
« SEATED AT FRONT L-R:
CLAUDIA DAVIS
Head, Supply Management and Facilities
WINSOME CALLUM,
Head, Corporate Communication
STANDING L-R:
GEORGE KATES
Head, Health, Safety, Security and Environment
SYLVIA BROWN
Director, Information Systems
FRANK “TONY” RAY
Special Advisor
ALICIA LYLE
Director, Human Resource Services
SAM DAVIS
Head, Government and Regulatory Affairs
Administration
« SEATED AT FRONT L-R:
ODETTE LEWIS
Performance Analyst
STANDING L-R:
ALDINGTON-DEAN SMITH
Director, Financial Planning and Reporting
GINA TOMLINSON
Manager Analysis and Business Processes
ANGELEAN YOUNG
Senior Financial Analyst
OMAR GREY
Manager, Group and Financial Planning
CORPORATE INNOVATION
Meet the teams cont’d
«
L-R:
DAWN GRAHAM
Manager, Claims and Insurance
KATHERINE FRANCIS
General Counsel and Corporate Secretary
DAVID FLEMMING
Legal Officer
JANNEL JAMES-BROWN
Easement Administrator
KIM ROBINSON
Legal Counsel
SHERYLL BROWN
«
SEATED AT FRONT L-R:
legal
ARLENE BROMFIELD
INSET: KIRSTEN PEDERSON
STANDING L-R:
HORTENSE HALL
MARCIA BROWN ELLIOTT
MARLENE MADDEN
DESRENE MAXWELL
WENDY MCNEIL
ABSENT: Yvonne Smith
EXECUTIVE SUPPORT
PATRICIA YOUNG
St. Catherine, Clarendon and Manchester
«
L-R:
SONIA JONES
St. Thomas, St. Mary, Portland
STACIE-ANN EARLE
St. Ann, Trelawny, St. James
VINETTE ALLEN
Hanover, Westmoreland, St. Elizabeth
VERONICA MCCURDY
Kingston and St. Andrew
REGIONAL CUSTOMER CARE MANAGERS
Meet the teams cont’d
«
L-R:
STEVE DIXON
Director Distribution,
Engineering and Maintenance
BLAINE JARRETT
Director, Transmission
Transmission and Distribution
DWIGHT DACOSTA
Director, System Planning and Control
RICARDO RENNALLS
Vice President, Transmission and Distribution
« SEATED AT FRONT L-R:
LEISA BATISTE-WHYTE
Head, Internal Audit
ALTHEA WHITE
Assistant, Internal Auditor
STANDING L-R:
DERVIN HANLAN
Technical Auditor
COURTLAND FACEY
Internal Auditor
ROMAIN WINT
Internal Auditor
SOPHIA HAMM
Internal Auditor
OSCAR JOHNSON
Technical Audit Inspector
INTERNAL AUDIT
HUGH HAMILTON
Senior Internal Auditor
LEROY WILSON
Internal Auditor
« L-R:
GLENROY LESLIE
Station Manager, Rockfort Power Station
DAVID COOK
Head, Logistics
RAY SINCLAIR
Station Manager, Old Harbour Bay Power Station
DESMOND FAGAN
Head, Renewables
ANDRE MODEST
Manager, Central Planning and Maintenance
RUBEN THOMAS
Bogue Complex
ALEJO LEE
Manager, Business Support and Administration
Generation
JOSEPH WILLIAMS
Station Manager, Hunts Bay Power Station
HERVE PERRIN
Vice President, Generation
Directors’ report
«
The Directors of the Jamaica Public Service Company Limited
submit herewith their Annual Report with the Audited Financial
Statements for the year ended December 31, 2011:
RESTATED
YEAR ENDED
PERIOD ENDED
JPS • ANNUAL REPORT 2011
December 31, 2011
(Twelve months)
December 31, 2010
(Twelve months)
US$’000
US$’000
OPERATING REVENUES
Profit/(Loss) before Taxation
Taxation credit/(Expense)
Net Profit/(Loss) attributable
53,211
58,247
(18,860)
(18,364)
34,351
39,883
2
3
44,000
44,000
to shareholders
Dividends on Preference Shares
Dividends on Ordinary Shares
Dividends:
The dividends for the year on all preference shares have been
paid in full. Interim dividend payments of (US0.00057265¢),
(US0.00057265¢) and (US0.00087043¢) on the ordinary stocks
and shares were declared by the Board on the 31st day of August
2011, 31st day of October 2011 and 30th day of December 2011,
respectively. The Board will not recommend any further payment.
Auditors:
38
In accordance with Section 154 of the Companies Act, a resolution
proposing the appointment of the Auditors and for the Directors
to fix the Auditors’ remuneration will be put to the Annual
General Meeting.
Directors’ report cont’d
Directors:
In accordance with Articles 86 and 123 of the Company’s Articles
of Association,
i. Professors Gordon Shirley, and Evan Windsor Duggan, Mr.
Fitzroy Vida, Mr. Masao Imazato and Ms. Cathrine Kennedy
JPS • ANNUAL REPORT 2011
having been appointed to the Board since the last Annual
General Meeting shall cease to hold office and, being eligible
offer themselves for election;
ii.Messrs. Glenford Watson, Russell Hadeed, Dennis Morgan,
John Rachford and Mrs. Beverley Lopez resigned during the
year under review. The Board wishes to express its sincere
appreciation to Messrs. Watson, Hadeed, Morgan, Rachford
and Mrs. Lopez for their contribution to the Company.
The Directors wish to thank the Management and staff of the
Company for their performance during the year under review.
Katherine P.C. Francis
Secretary
39
Corporate Data
«
REGISTRAR
Cumulative Preference Shares and Ordinary Stock
NCB Nominee Jamaica Limited
32 Trafalgar Road
Kingston 10
JPS • ANNUAL REPORT 2011
Jamaica WI
REGISTERED OFFICE
AUDITORS
6 Knutsford Boulevard Ernst & Young
Kingston 8 Olivier Road
Jamaica WI Kingston 8
Jamaica WI
ATTORNEYS-AT-LAW
Livingston Alexander & Levy
Nunes Scholefield Deleon & Co.
Clinton Hart & Co.
72 Harbour Street 6a Holborn Road Attorneys-at-Law
Kingston Kingston 5 58 Duke Street
Kingston
BANKERS
National Commercial Bank Limited
First Caribbean International Bank Limited
Cnr Duke & Barry Streets
23 Knutsford Boulevard
Kingston Kingston 5
Jamaica WI
Bank of Nova Scotia Jamaica Limited
Citibank, NA.
ScotiaBank Centre
63 Knutsford Boulevard
Duke StreetKingston 5
Kingston
Jamaica WI
RBC Jamaica. Ltd.
40
First Global Financial Services
17 Dominica Drive
2 St. Lucia Avenue
Kingston 5Kingston 5
Jamaica WI
Operational statistics
«
Dec-31-11
Dec-31-10
Dec-31-09
Dec-31-08
Dec-31-07
(12 months)
(12 months)
(12 months)
(12 months)
(12 months)
OPERATING REVENUES (US$000’s)
Residential
412,259
351,994
298,226
349,467
293,006
Commercial & Industrial (Sml.)
521,845
417,370
358,233
454,436
358,576
Commercial & Industrial (Lge.)
189,589
148,280
117,327
159,142
114,698
29,703
24,923
19,772
25,159
19,108
1,153,396
942,567
793,558
988,204
785,388
513,970
509,660
521,837
526,492
520,085
Commercial & Industrial (Sml.)
61,401
60,782
62,029
62,347
61,419
Commercial & Industrial (Lge.)
145
138
130
124
116
Other
246
221
222
199
208
575,762
570,801
584,218
589,162
581,828
1,583,387
1,673,385
1,725,786
1,693,372
1,671,222
Hydro
152,087
151,716
140,073
158,180
159,820
Gas Turbines
179,914
182,651
252,579
244,485
267,503
Combined Cycle Plant
810,212
786,101
748,643
769,596
701,384
Purchases
1,411,279
1,343,497
1,346,899
1,257,655
1,278,842
TOTAL
4,136,879
4,137,350
4,213,980
4,123,288
4,078,771
920,889
949,862
1,010,102
944,210
947,277
22.3%
23.0%
24.0%
22.9%
23.2%
10,112
10,183
10,167
10,215
10,627
Residential
1,064,535
1,090,619
1,082,599
1,048,399
1,064,068
Commercial & Industrial (Sml.)
1,437,283
1,402,748
1,435,284
1,432,323
1,416,149
Commercial & Industrial (Lge.)
615,041
593,360
589,560
599,850
561,602
99,131
100,761
96,435
98,506
89,675
3,215,990
3,187,488
3,203,878
3,179,078
3,131,494
Other
TOTAL
Residential
TOTAL
JPS • ANNUAL REPORT 2011
AVERAGE NO. OF CUSTOMERS
NET GENERATION AND PURCHASES (MWH)
Steam & Slow Speed Diesel
Losses & Unaccounted
for (MWh)
Systems losses as a percentage
of Net Generation
Heat Rate (Kj/kWh)
ENERGY SALES (MWH)
Other
TOTAL
AVERAGE USE & REVENUE PER RESIDENTIAL CUSTOMER
Annualized kWh
consumption/Customer
Annualized Revenues/Customer
Average billing
exchange rate for period
U.S. Cents per kWh
2,071
2,140
2,075
1,991
2,046
802
691
571
664
563
86.03
87.65
88.06
72.54
68.88
38.7
32.3
27.5
33.3
27.5
41
key performance indicators
«
JPS • ANNUAL REPORT 2011
Electricity demand
Sales 2011
revenue
other
Residential
Small Commercial
Large Commercial
42
(US¢/kWh)
key performance indicators cont’d
JPS • ANNUAL REPORT 2011
Fuel Cost and system losses
operating expenses
43
key performance indicators cont’d
JPS • ANNUAL REPORT 2011
HEat rate and capacity factor
Availability & forced outage factor
44
J a m a i c a P u b li c S Er v i c e Li m i t ed
Financial statements
Y ea r en d ed 3 1 d ec em b er 2 0 1 1
Expressed in United States Dollars
Independent Auditors’ report
Chartered Accountants
8 Olivier Road
Kingston 8
Jamaica
Tel: 876 925 2501
Fax: 876 755 0413
www.ey.com
JPS • ANNUAL REPORT 2011
INDEPENDENT AUDITORS’ REPORT
To the Shareholders of Jamaica Public Service Company Limited
We have audited the accompanying financial statements of the Jamaica Public Service
Company Limited (“the company”), which comprise the statement of financial position as at 31
December 2011 and the statement of comprehensive income, statement of changes in equity
and statement of cash flows for the year then ended, and a summary of significant accounting
policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with International Financial Reporting Standards and the requirements
of the Jamaican Companies Act, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
47
A member firm of Ernst & Young Global Limited
Partners: Allison Peart, Linval Freeman
«
Independent Auditors’ report
«
JPS • ANNUAL REPORT 2011
INDEPENDENT AUDITORS’ REPORT, CONTINUED
To the Shareholders of Jamaica Public Service Company Limited, Continued
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the
company as at 31 December 2011 and of its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards and the
requirements of the Jamaican Companies Act.
Report on Additional Requirements of the Jamaican Companies Act
We have obtained all the information and explanations which, to the best of our knowledge and
belief, were necessary for the purposes of our audit. In our opinion, proper accounting records
have been maintained and the financial statements are in agreement with the accounting
records, and give the information required by the Jamaican Companies Act in the manner so
required.
Chartered Accountants
Kingston, Jamaica
26 March 2012
48
Statement of financial position
A S AT 3 1 D E C E M B E R 2 0 1 1
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Statement of Financial Position
As at 31 December 2011
(Expressed in United States Dollars)
Notes
2011
$’000
Restated
2010
$’000
(Note 30)
Restated
2009
$’000
(Note 30)
11
12
13(a)
14
655,534
5,570
27,180
4,738
652,107
5,139
22,307
-
637,038
4,897
22,062
-
693,022
679,553
663,997
8,830
18,346
273,047
320
60,132
9,143
14,072
229,905
1,191
51,593
9,950
6,112
221,153
2,547
50,291
360,675
305,904
290,053
1,053,697
985,457
954,050
ASSETS
Property, plant & equipment
Intangible assets
Employee benefits asset
Other asset
JPS • ANNUAL REPORT 2011
Non-Current Assets
Current Assets
Cash and cash equivalents
Restricted cash
Accounts receivable
Tax recoverable
Inventories
5
6
7
TOTAL ASSETS
49
3
«
«
JPS • ANNUAL REPORT 2011
Statement of financial position
49
50
101,
A S AT 3 1 D E C E M B E R 2 0 1 1
Expressed in United States Dollars
Statement of Comprehensive Income
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Statement of Comprehensive Income
Year ended 31 December 2011
(Expressed in United States Dollars)
Notes
20
Cost of Sales:
Fuel
Purchased power (excluding fuel)
4
Gross Profit
Operating Expenses:
Operating & maintenance, selling, general
& administrative expenses
Depreciation and amortisation
Operating Profit Before Net Finance Costs,
Other Income, Other Expenses and Taxation
Restated
2010
$’000
(Note 30)
1,153,396
942,567
-------------------- -------------------( 765,947)
(578,379)
( 80,180)
( 71,843)
-------------------- -------------------( 846,127)
(650,222)
-------------------- -------------------307,269
292,345
-------------------- --------------------
JPS • ANNUAL REPORT 2011
Operating Revenue
2011
$’000
( 169,181)
(153,047)
( 48,373)
( 46,141)
-------------------- -------------------( 217,554)
(199,188)
-------------------- -------------------21
Net Finance Costs:
Foreign exchange (losses) gains
Other finance costs
Finance income
89,715
93,157
-------------------- -------------------(
(
Other income
Other expenses
22
23(a)
23(b)
Profit Before Taxation
Taxation expense
24
Profit for the Year
Other Comprehensive Income:
Revaluation deficit
11
Total Comprehensive Income
Attributable to Shareholders
Earnings Per Share/Stock Unit
25
3,276)
7,207
39,084)
( 41,079)
3,147
2,484
-------------------- -------------------( 39,213)
( 31,388)
5,130
4,942
(
2,421)
( 8,464)
-------------------- -------------------53,211
58,247
( 18,860)
( 18,364)
-------------------- -------------------34,351
39,883
(
21,314)
-
--------------------
--------------------
13,037
==========
39,883
==========
0.15¢
==========
0.18¢
==========
51
The accompanying notes form an integral part of these financial statements
5
«
Statement of changes Y E A R E N D E D 3 1 D E C E M B E R 2 0 1 1
JAMAICA PUBLIC SERVICE COMPANY LIMITED
in Shareholders’
equity
Expressed in United States Dollars
«
Statement of Changes in Shareholders’ Equity
Year ended 31 December 2011
(Expressed in United States Dollars)
Retained
earnings
$’000
Total
$’000
41,357
96,490
399,765
------------------
----------------
6,439
----------------
6,439
----------------
261,918
41,357
102,929
406,204
Comprehensive income for the year,
as restated (Note 30)
-
-
39,883
39,883
Dividends (Note 26)
-
-
( 44,003)
( 44,003)
------------------
----------------
----------------
----------------
261,918
41,357
98,809
402,084
(21,314)
34,351
13,037
JPS • ANNUAL REPORT 2011
Balances at 31 December 2009, as
previously reported
Prior year adjustment (Note 30)
Balances at 31 December 2009, as
restated
Balance at 31 December 2010, as
restated
Share
capital
$’000
(Note 15)
Capital
reserve
$’000
(Note 16)
261,918
Comprehensive income for the year
-
Dividends (Note 26)
-
-
( 44,002)
( 44,002)
-----------------261,918
=========
---------------20,043
========
---------------89,158
========
---------------371,119
========
Balance at 31 December 2011
The accompanying notes form an integral part of these financial statements.
52
6
Statement of Cash FLows
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Cash Flows From Operating Activities
Profit for the year
Adjustments for:
Depreciation and amortisation
Amortisation of debt issuance costs
Unrealised foreign exchange gains
Interest expense
Other interest income
Interest capitalised
Income tax expense
Deferred tax expense/ (credit)
Employee benefits, net
Cash generated before changes in working capital and deposits
Accounts receivable
Inventories
Accounts payable
Due to related companies
Customer deposits and advances
Restricted cash
Cash generated from operations
Taxes paid
Net cash provided by operating activities
Cash Flows From Investing Activities
Purchase of property, plant & equipment
Purchase of intangible assets
Other asset
Interest received
Net cash used by investing activities
Cash Flows From Financing Activities
Short-term loans received
Repayment of short-term loan
Long-term loans received
Repayment of long-term loans
Interest paid
Dividends paid
Net cash used by financing activities
Net decrease in cash and cash equivalents
Net cash and cash equivalents at beginning of year
Net Cash And Cash Equivalents At End Of Year
7
2011
$’000
Restated
2010
$’000
(Note 30)
34,351
39,883
48,373
2,346
( 1,240)
35,755
( 1,472)
( 1,675)
16,546
2,314
( 10,412)
---------------124,886
( 43,663)
( 8,539)
33,783
871
10,141
( 4,274)
----------------113,205
( 22,502)
----------------90,703
-----------------
46,141
1,035
( 1,322)
38,400
( 1,124)
( 1,360)
18,717
(353)
( 7,256)
---------------132,761
( 7,818)
( 1,302)
1,368
(
113)
8,571
( 7,960)
----------------125,507
( 15,782)
----------------109,725
-----------------
( 70,356)
( 1,515)
( 4,738)
1,400
----------------( 75,209)
-----------------
( 59,392)
(
700)
1,083
----------------( 59,009)
-----------------
( 26,641)
158,102
( 71,311)
( 36,724)
( 56,645)
---------------( 33,219)
---------------( 17,725)
9,143
---------------( 8,582)
========
27,159
( 48,376)
84,570
( 43,939)
( 38,377)
( 32,560)
------------------( 51,523)
-----------------(
807)
9,950
-----------------9,143
=========
JPS • ANNUAL REPORT 2011
Statement of Cash Flows
Year ended 31 December 2011
(Expressed in United States Dollars)
53
«
Statement of Cash FLows
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
«
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Statement of Cash Flows
Year ended 31 December 2011
(Expressed in United States Dollars)
2011
$’000
Represented by:
Cash and cash equivalents
Bank overdraft
JPS • ANNUAL REPORT 2011
8,830
( 17,412)
---------------( 8,582)
========
The accompanying notes form an integral part of these financial statements
54
8
Restated
2010
$’000
(Note 30)
9,143
-----------------9,143
=========
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
1.
Corporate structure and nature of business
The company is incorporated in Jamaica. MaruEnergy JPSCO 1 SRL and EWP (Barbados)
1 SRL each has 40% interest in the company’s shares. MaruEnergy JPSCO I SRL, is
incorporated in Barbados and is ultimately owned by Marubeni Corporation. EWP
(Barbados) 1 SRL is incorporated in Barbados and is ultimately owned by the Korea
Electric Power Corporation.
JPS • ANNUAL REPORT 2011
A further 19.9% of the issued ordinary shares are held by the Accountant General and the
Development Bank of Jamaica on behalf of the Government of Jamaica (GOJ) collectively,
and the remaining 0.1% is held by individuals. In accordance with a Shareholder’s
Agreement the majority shareholders have the right to appoint six members of the Board of
Directors while the GOJ has the right to appoint three. Additionally, certain significant
decisions of the Board of Directors require a unanimous vote of the appointed directors.
The principal activities of the company are generating, transmitting, distributing and
supplying electricity in accordance with the terms of the All-Island Electric Licence, 2001
(the Licence), granted on March 30, 2001, by the Minister of Mining and Energy.
The registered office of the company is situated at 6 Knutsford Boulevard, Kingston 5,
Jamaica, W. I., and its preference shares are listed on the Jamaica Stock Exchange.
2.
Regulatory arrangements and tariff structure
The Licence authorises the company to supply electricity for public and private purposes
within the Island of Jamaica, subject to regulation by the Office of Utilities Regulation
(OUR) established pursuant to the Office of Utility Regulation Act, 1995, and as
subsequently amended, with power and authority to require observance and performance
by the company of its obligations under the Licence, and to regulate the rates charged by
the company.
Under the provisions of the Licence, the company is granted the exclusive right to
transmit, distribute and supply electricity throughout the Island of Jamaica for a period of
twenty years and to develop new generation capacity within the first three years from the
effective date of the Licence. Since the expiration of this initial three year period, the
company has the right, together with other persons, to compete for the right to develop new
generation capacity. The Licence was extended in August 2007 for an additional period of
six years through to 2027 upon the sale of the company by Mirant Corporation to
Marubeni Corporation.
Schedule 3 of the Licence defines the rates for electricity and the mechanism for rate
adjustments.
55
9
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
2.
Regulatory arrangements and tariff structure (continued)
JPS • ANNUAL REPORT 2011
Under the Licence, the rates for electricity consist of a Non-Fuel Base Rate, which is
adjusted annually using the Performance Based Rate-making Mechanism; and a Fuel Rate,
which is adjusted monthly to reflect fluctuations in actual fuel costs, net of adjustments for
prescribed efficiency targets. Both rates (fuel and non-fuel) are adjusted monthly to
account for movements in the monetary exchange rate between the United States (US)
dollar and the Jamaica dollar.
These rates are determined in accordance with the tariff regime, which provides that the
OUR annually reviews the company’s efficiency levels (system losses and heat rate) and,
where appropriate, adjusts these in the tariff, primarily relating to fuel revenues. Under the
rate schedule the company should recover its actual fuel costs, net of the prescribed
efficiency adjustments, through its Fuel Rate.
As of 31 May 2004, and thereafter, on each succeeding fifth anniversary, the company
must submit a filing to the OUR for further rate adjustments to its Non-Fuel Base Rate.
The rate filing, which requires OUR approval, is based on a test year and includes defined
“efficient” non-fuel operating costs, depreciation expenses, taxes, and a fair return on
investment.
Embedded in the OUR approved tariff is an amount to be set aside monthly in case of a
major catastrophe affecting the company’s operations (transfer to self-insurance sinking
fund).
3.
Statement of compliance, basis of preparation and significant accounting policies
(a)
Statement of compliance:
The financial statements are prepared in accordance with International Financial
Reporting Standards (IFRS) and their interpretations adopted by the International
Financial Reporting Interpretation Committee (IFRIC), and comply with the
provisions of the Jamaican Companies Act.
(b) Changes in accounting standards and interpretations:
i) Current year changes:
56
The accounting policies adopted are consistent with those of the previous
financial year, except for the following amended IFRSs and IFRIC interpretations
which became effective as of 1 January 2011 and are of relevance to the
company’s operations:
 IAS 24 Related Party Disclosures (amendment) effective 1 January 2011
 IAS 32 Financial Instruments: Presentation (amendment) effective 1
February 2010
 IFRIC 14 Prepayments of a Minimum Funding Requirement (amendment)
effective 1 January 2011
 IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
 Improvements to IFRSs (May 2010)
10
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(b) Changes in accounting standards and interpretations (continued):
i) Current year changes (continued):
The adoption of the amendments to these standards and interpretations is
described below:
JPS • ANNUAL REPORT 2011
3.
IAS 24 Related Party Transactions (Amendment)
The International Accounting Standards Board (IASB) issued an amendment to
IAS 24 that clarifies the definitions of a related party. The new definitions
emphasise a symmetrical view of related party relationships and clarifies the
circumstances in which persons and key management personnel affect related
party relationships of an entity. In addition, the amendment introduces an
exemption from the general related party disclosure requirements for transactions
with government and entities that are controlled, jointly controlled or significantly
influenced by the same government as the reporting entity. The adoption of the
amendment did not have any impact on the financial position or performance of
the company.
IAS 32 Financial Instruments: Presentation (Amendment)
The IASB issued an amendment that alters the definition of a financial liability in
IAS 32 to enable entities to classify rights issues and certain options or warrants
as equity instruments. The amendment is applicable if the rights are given pro rata
to all of the existing owners of the same class of an entity’s non-derivative equity
instruments, to acquire a fixed number of the entity’s own equity instruments for a
fixed amount in any currency. The amendment has had no effect on the financial
position or performance of the company.
IFRIC 14 Prepayments of a Minimum Funding Requirement (Amendment)
The amendment removes an unintended consequence when an entity is subject to
minimum funding requirements and makes an early payment of contributions to
cover such requirements. The amendment permits a prepayment of future service
cost by the entity to be recognised as a pension asset. The amendment of the
interpretation had no effect on the financial position nor performance of the
company.
57
11
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
3.
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(b) Changes in accounting standards and interpretations (continued):
i) Current year changes (continued):
JPS • ANNUAL REPORT 2011
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
The interpretation clarifies that equity instruments issued to a creditor to
extinguish a financial liability qualify as consideration paid. The equity
instruments issued are measured at their fair value. In case that this cannot be
reliably measured, the instruments are measured at the fair value of the liability
extinguished. Any gain or loss is recognized immediately in profit or loss. The
adoption of this interpretation had no effect on the financial statements of the
company.
Improvements to IFRSs
In May 2010, the IASB issued its third omnibus of amendments to its standards,
primarily with a view to removing inconsistencies and clarifying wording. There
are separate transitional provisions for each standard. The adoption of these
amendments had no impact on the financial position or performance of the
company. The following standards were amended:
 IFRS 3 Business Combinations
 IFRS 7 Financial Instruments — Disclosures
 IAS 1 Presentation of Financial Statements
 IAS 27 Consolidated and Separate Financial Statements
 IAS 34 Interim Financial Statements
58
12
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(b)
Changes in accounting standards and interpretations (continued):
ii)
Future changes:
The company has not adopted early the following new and revised IFRS’s and
IFRIC interpretations that have been issued but are not yet effective:
JPS • ANNUAL REPORT 2011
3.
IAS 1 Financial Statement Presentation – Presentation of Items of Other
Comprehensive Income
The amendments to IAS 1 change the grouping of items presented in OCI.
Items that could be reclassified (or ‘recycled’) to profit or loss at a future point
in time (for example, upon derecognition or settlement) would be presented
separately from items that will never be reclassified. The amendment affects
presentation only and will have no impact on the company’s financial position
or performance. The amendment becomes effective for annual periods
beginning on or after 1 July 2012.
IAS 12 Income Taxes – Recovery of Underlying Assets
The amendment clarifies the determination of deferred tax on investment
property measured at fair value. The amendment introduces a rebuttable
presumption that deferred tax on investment property measured using the fair
value model in IAS 40 should be determined on the basis that its carrying
amount will be recovered through sale. Furthermore, it introduces the
requirement that deferred tax on non-depreciable assets that are measured using
the revaluation model in IAS 16 always be measured on a sale basis of the
asset. The amendment becomes effective for annual periods beginning on or
after 1 January 2012 and is not likely to have any impact on the company’s
financial statements.
IAS 19 Employee Benefits (Amendment)
The IASB has issued numerous amendments to IAS 19. These range from
fundamental changes such as removing the corridor mechanism and the
concept of expected returns on plan assets to simple clarifications and rewording. The amendment becomes effective for annual periods beginning on or
after 1 January 2013. The management of the company is still assessing the
impact of the amendment on the company’s financial performance.
IAS 27 Separate Financial Statements (as revised in 2011)
As a consequence of the new IFRS 10 and IFRS 12, what remains of IAS 27 is
limited to accounting for subsidiaries, jointly controlled entities, and associates
in separate financial statements. The amendment becomes effective for annual
periods beginning on or after 1 January 2013. This amendment is not likely to
have any impact on the company’s financial statements.
13
59
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
3.
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(b)
Changes in accounting standards and interpretations (continued):
ii)
Future changes (continued):
JPS • ANNUAL REPORT 2011
IFRS 7 Financial Instruments: Disclosures — Enhanced Derecognition
Disclosure Requirements
The amendment requires additional disclosure about financial assets that have
been transferred but not derecognised to enable the users of financial
statements to understand the relationship with those assets that have not been
derecognised and their associated liabilities. In addition, the amendment
requires disclosures about continuing involvement in derecognised assets to
enable the user to evaluate the nature of, and risks associated with, the entity’s
continuing involvement in those derecognised assets. The amendment becomes
effective for annual periods beginning on or after 1 July 2011. The amendment
affects disclosure only and is not likely to have any significant impact on the
company’s financial position or performance.
IFRS 9 Financial Instruments: Classification and Measurement
IFRS 9 as issued reflects the first phase of the IASBs work on the replacement
of IAS 39 and applies to classification and measurement of financial assets and
financial liabilities as defined in IAS 39. The standard is effective for annual
periods beginning on or after 1 January 2015. In subsequent phases, the IASB
will address hedge accounting and impairment of financial assets. The
completion of this project is expected over the course of 2011 or the first half
of 2012. The company will quantify the effect in conjunction with the other
phases, when issued, to present a comprehensive picture.
60
IFRS 10 Consolidated Financial Statements
IFRS 10 replaces the portion of IAS 27 Consolidated and Separate Financial
Statements that addresses the accounting for consolidated financial statements.
It also includes the issues raised in SIC-12 Consolidation — Special Purpose
Entities. IFRS 10 establishes a single control model that applies to all entities
including special purpose entities. The changes introduced by IFRS 10 will
require management to exercise significant judgement to determine which
entities are controlled, and therefore, are required to be consolidated by a
parent, compared with the requirements that were in IAS 27. This standard
becomes effective for annual periods beginning on or after 1 January 2013.
This standard is not likely to have any impact on the company’s financial
statements.
14
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(b)
Changes in accounting standards and interpretations (continued):
ii)
Future changes (continued):
IFRS 11 Joint Arrangements
IFRS 11 replaces IAS 31 Interests in Joint Ventures and SIC-13 Jointlycontrolled Entities — Non-monetary Contributions by Venturers. IFRS 11
removes the option to account for jointly controlled entities (JCEs) using
proportionate consolidation. Instead, JCEs that meet the definition of a joint
venture must be accounted for using the equity method. This standard becomes
effective for annual periods beginning on or after 1 January 2013. This
standard is not likely to have any impact on the company’s financial
statements.
JPS • ANNUAL REPORT 2011
3.
IFRS 12 Disclosure of Involvement with Other Entities
IFRS 12 includes all of the disclosures that were previously in IAS 27 related
to consolidated financial statements, as well as all of the disclosures that were
previously included in IAS 31 and IAS 28. These disclosures relate to an
entity’s interests in subsidiaries, joint arrangements, associates and structured
entities. A number of new disclosures are also required. This standard becomes
effective for annual periods beginning on or after 1 January 2013. This
standard is not likely to have any impact on the company’s financial
statements.
IFRS 13 Fair Value Measurement
IFRS 13 establishes a single source of guidance under IFRS for all fair value
measurements. IFRS 13 does not change when an entity is required to use fair
value, but rather provides guidance on how to measure fair value under IFRS
when fair value is required or permitted. This standard becomes effective for
annual periods beginning on or after 1 January 2013. The management of the
company is still assessing the impact of this standard on the company’s
financial statements.
61
15
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
3.
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(c)
Basis of measurement:
JPS • ANNUAL REPORT 2011
These financial statements are presented in United States dollar, which is the
functional and presentation currency of the company. The United States dollar is the
functional currency because it is the primary economic environment in which the
company operates.
The financial statements are prepared under the historical cost basis, modified for the
inclusion of land at valuation and the measurement at deemed cost for specialised
plant and equipment. Deemed cost represents the fair value at the date of transition
to IFRS.
(d)
Use of estimates and judgements:
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate
is revised if the revision affects only that period, or in the period of the revision and
future periods, if applicable.
Judgements made by management in the application of IFRS that have significant
effect on the financial statements and estimates with a significant risk of material
adjustment in the next financial year are discussed below:
(i)
Pension
The amounts recognised in the statement of financial position and statement of
comprehensive income for pension is determined actuarially using several
assumptions. The primary assumptions used in determining the amounts
recognised include expected long-term return on plan assets, expected rates of
salary and pension increases, and the discount rate used to determine the
present value of estimated future cash flows required to settle the pension
obligation.
62
16
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(d)
Use of estimates and judgements (continued):
(i)
Pension (continued)
The expected return on plan assets considers the long-term historical returns,
asset allocation and future estimates of long-term investment returns. The
discount rate is determined based on the estimate of yield on long-term
government securities that have maturity dates approximating the terms of the
company’s obligation; in the absence of such instruments in Jamaica, it has
been necessary to estimate the rate by extrapolating from the longest-tenure
security on the market. Any changes in these assumptions will affect the
amounts recorded in the financial statements for these obligations.
(ii)
JPS • ANNUAL REPORT 2011
3.
Allowance for impairment losses on receivables
In determining amounts recorded for impairment losses in the financial
statements, management makes judgements regarding indicators of
impairment, that is, whether there are indicators that suggest there may be a
measurable decrease in the estimated future cash flows from receivables, for
example, default and adverse economic conditions. Management also makes
estimates of the likely estimated future cash flows from impaired receivables
as well as the timing of such cash flows. Historical loss experience is applied
where indicators of impairment are not observable on individually significant
receivables with similar characteristics, such as credit risks.
(iii) Lease arrangements
Management evaluates all purchase arrangements to assess whether they
contain leases [Notes 3(t) & 4].
(iv) Unbilled revenue
Unbilled revenue at each month-end is estimated consistently using certain
objective indicators such as heat rate, system losses rate, fuel rate and
Independent Power Provider (IPP) charges, other non fuel rates and unbilled
quantity.
(v)
Deferred tax
Deferred tax assets are recognized for all unused tax losses to the extent that it
is probable that taxable profit will be available against which losses can be
utilized. The amount of deferred tax assets that is recognized is based upon the
likely timing and estimated levels of future taxable profits.
17
63
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
3.
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(d)
Use of estimates and judgements (continued):
(vi) Property, plant and equipment
JPS • ANNUAL REPORT 2011
Management exercises judgement in determining whether the costs incurred
can accrue significant future economic benefits to the company to enable the
value to be treated as a capital expense.
Further judgement is applied in the annual review of the useful lives of all
categories of property, plant and equipment and the resulting depreciation
thereon.
(vii) Provision for inventory obsolescence
The company assesses on an annual basis its inventory to determine the
provision that should be carried for items that are in good condition, but will
not be used in the foreseeable future. Provision is also made for items that
have deteriorated or become damaged while in stock.
(e)
Cash and cash equivalents:
Cash and cash equivalents comprise cash and bank balances including short-term
deposits with maturities ranging between one and three months from the statement
of financial position date.
(f)
Accounts receivable:
Trade and other accounts receivable are stated at amortised cost less impairment
losses.
(g)
Inventories:
Inventories materially comprise fuel stocks, and generation, transmission and
distribution spare parts. Inventories are valued at the lower of cost, determined on a
weighted average cost basis, and net realisable value.
(h)
Accounts payable:
Trade and other payables are stated at amortised cost.
(i)
64
Provisions:
A provision is recognised in the statement of financial position when the company
has an obligation as a result of a past event and it is probable that an outflow of
economic benefits will be required to settle the obligation. If the effect is material,
provisions are determined by discounting the expected future cash flows at a rate
that reflects current market assessments of the time value, and, where appropriate,
the risks specific to the obligation.
18
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(j)
Property, plant & equipment and intangible assets:
In accordance with IAS 16, additions to property, plant and equipment and
intangible assets, replacement of retirement units of plant in service, or additions to
construction work-in-progress include direct labour, materials, professional fees and
an appropriate charge for overheads.
JPS • ANNUAL REPORT 2011
3.
Specialized, plant and equipment are stated at deemed cost at the IFRS transition
date of 1 January 2003, less accumulated depreciation and impairment losses, while
all other property, plant and equipment are stated at cost except for land, which is
stated at revalued cost. Land was revalued as at 31 December 2011 using the Market
Comparable Basis which is based on the use of sale values obtained for similar
properties within the relevant period.
Property, plant and equipment in the course of construction are carried at cost less
recognised impairment losses.
Intangible assets, comprising computer software, are stated at cost, less amortisation
and impairment losses.
(k)
Depreciation and amortisation:
Land and land rights are not depreciated.
Other property, plant and equipment and intangible assets are depreciated or
amortised on the straight-line basis at annual rates estimated to write off the assets
over their expected useful lives.
The depreciation rates, which are specified by the Licence, are as follows:
Steam production plant
Hydraulic production plant
Other production plant
Transmission plant
Distribution plant
General plant & equipment:
Buildings and structures
Transport equipment
Other equipment
4%
2%, 2½%, 2.86%
2½%, 4% & 5%
4%
3.33% & 4%
2%
14.3%
4%, 5% & 6.65%
Computer software is amortised at 6.65% per annum.
These depreciation rates are reviewed annually by management to make sure they
are in compliance with IFRS.
19
65
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
3.
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(l)
Employee benefits:
JPS • ANNUAL REPORT 2011
Assets and liabilities in respect of the defined benefit pension plan have been
actuarially determined by a qualified independent actuary appointed by management.
The appointed actuary’s report outlines the scope of the valuation and the actuary’s
opinion. The actuarial valuations were conducted in accordance with IAS 19, and the
financial statements reflect the company’s post-employment benefits asset and
obligations as computed by the actuary.
(i)
Pension assets:
The company participates in two trusteed pension plans (a defined-benefit and a
defined contribution pension plan), the assets of which are held separately from
those of the company, and remain under the control of the appointed trustees.
Obligations for contributions to the defined contribution pension plan are
recognised as an expense in the statement of comprehensive income as
incurred.
The defined benefit pension plan requires the company to contribute a
percentage of employees’ pensionable earnings and employees to contribute a
similar amount. Such contributions, which are actuarially determined, provide
for current costs and amounts to amortise any past service deficits disclosed
over the average future working lifetime of the active membership.
66
The company’s net obligation in respect of the defined benefit pension plan is
calculated at each statement of financial position date by estimating the amount
of future benefits that employees have earned in return for their service in the
current and prior periods, discounting it to determine its present value, and
deducting the fair value of the plan assets. To the extent that the obligation is
less than the fair value of the plan assets, the asset recognised is restricted to the
discounted value of future benefits available to the company in the form of
future refunds or reductions in contributions. The discount rate applied is the
yield at statement of financial position date on long-term government
instruments that have maturity dates approximating the term of the company’s
obligation. In the absence of such instruments in Jamaica, it has been necessary
to estimate the rate by extrapolating from the longest-tenure security on the
market.The calculation is performed by a qualified independent actuary using
the Projected Unit Credit Method.
In calculating the company’s obligation in respect of the plan at the statement
of financial position date, actuarial gains or losses are recognised in the
statement of comprehensive income in the accounting period in which they
occur.
20
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(l)
Employee benefits (continued):
(ii)
Other post-employment benefits:
A provision is made for unutilised vacation and sick leave in respect of
services rendered by employees up to the statement of financial position date.
Under collective bargaining agreements, employees are entitled to a
termination benefit in relation to their unutilised vacation and sick leave
entitlements that accumulate in certain instances over the life of their service.
The provision includes estimated employer’s contributions arising out of
leave-vesting.
JPS • ANNUAL REPORT 2011
3.
(m) Customer deposits:
Given the long-term nature of the customer relationship, customer deposits and
construction advances are shown in the statement of financial position as non-current
liabilities (i.e., amounts not likely to be repaid within twelve months of the statement
of financial position date). Interest is credited annually on customer deposits at rates
prescribed by the Licence.
(n)
Revenue recognition:
Operating revenue represents income for the provision of electricity and related
services. Income is recognised for billings made for these services and an estimate
of electricity supplied prior to the end of the reporting period which is to be billed
subsequently (referred to as “unbilled” revenues and included in accounts
receivable).
(o)
Borrowings:
(i)
Capitalisation of borrowing costs:
Borrowing costs directly attributable to the construction of qualifying assets
are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use. All other borrowing costs are
recognised in the statement of comprehensive income in the period in which
they are incurred.
(ii)
Debt issuance costs:
67
These represent legal, accounting and financing fees associated with securing
certain long-term loans, which are being amortised on an effective rate basis
over the lives of the loans.
21
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
3.
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(o) Borrowings (continued):
(iii) Interest-bearing borrowings:
JPS • ANNUAL REPORT 2011
Interest-bearing borrowings are recognised initially at fair value plus transaction
costs directly attributable to the issue of the financial liabilities. Subsequent to
initial recognition, interest-bearing borrowings are stated at amortised cost using
effective interest method.
(p) General Consumption Tax (GCT):
The Government through an amendment to the GCT Act gazetted in 2009, imposed
GCT at the rate of 10% on electricity with effect from 1 February 2010. The
amendment to the Act also prevented the company from recovering input GCT
incurred in the acquisition of goods or services and, consequently, such goods or
services are recorded at cost plus GCT where incurred.
(q) Income taxes:
Taxation on the profit or loss for the year comprises current and deferred tax.
Taxation is recognised in the statement of comprehensive income, except to the
extent that it relates to items recognised directly in equity, in which case it is
recognised in equity.
Current tax is the expected tax payable on the income for the year, using tax rates
enacted at the balance sheet date, and any adjustment to tax payable in respect of
previous years.
Deferred tax is computed using the statement of financial position liability method,
providing for temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation
purposes. The amount of deferred tax provided is based on the expected manner of
realisation or settlement of the carrying amount of assets and liabilities, using tax
rates enacted at the statement of financial position date.
68
A deferred tax liability is recognised for all taxable temporary differences, except to
the extent that the company is able to control the timing of the reversal of the
temporary difference and it is probable that the temporary difference will not reverse
in the foreseeable future.
22
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(q) Income taxes (continued):
A deferred tax asset is recognised only to the extent that it is probable that future
taxable profits will be available against which the asset can be utilised. Deferred tax
assets are reduced to the extent that it is no longer probable that the related tax
benefit will be realised.
(r)
JPS • ANNUAL REPORT 2011
3.
Foreign currencies:
Transactions in foreign currencies are converted at the rates of exchange ruling on
the dates of those transactions. Monetary assets and liabilities denominated in
foreign currencies at the statement of financial position date are translated to United
States dollars at the rates of exchange ruling at that date. Gains and losses arising
from fluctuations in exchange rates are included in the statement of comprehensive
income.
For the purposes of statement of cash flows, realised foreign currency gains and
losses are treated as cash items and included in cash flows from operating or
financing activities along with movement in the relevant balances.
(s)
Impairment:
The carrying amounts of the company’s assets are reviewed at each statement of
financial position date to determine whether there is any indication of impairment. If
any such indication exists, an asset’s recoverable amount is estimated at each
statement of financial position date. An impairment loss is recognised whenever the
carrying amount of an asset or its cash-generating unit exceeds its recoverable
amount. Impairment losses are recognised in the statement of comprehensive
income.
Calculation of recoverable amounts:
The recoverable amount of the company’s receivables is calculated as the present
value of expected future cash flows, discounted at the original effective interest rate
inherent in the asset. Receivables with a short duration are not discounted.
The recoverable amount of other assets is the greater of their fair value less cost to
sell and value in use. In assessing value in use, the estimated entity-specific future
cash flows are discounted to their present value using a discount rate that reflects
current market assessments of the time value of money and the risks specific to the
asset. For an asset that does not generate independent cash inflows, the recoverable
amount is determined for the cash-generating unit to which the asset belongs.
23
69
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
3.
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(s)
Impairment (continued):
Calculation of recoverable amounts (continued):
JPS • ANNUAL REPORT 2011
An impairment loss in respect of receivables is reversed if the subsequent increase in
recoverable amount can be related objectively to an event occurring after the
impairment loss was recognised. An impairment loss is reversed if there has been a
change in the estimate used to determine the recoverable amount.
(t)
Leases:
Payments made under operating leases are recognised in the statement of
comprehensive income on a straight-line basis over the term of the lease.
(u)
Segment reporting:
An operating segment is a component of an entity:
(i)
that engages in business activities from which it may earn revenues and incur
expenses (including revenues and expenses relating to transactions with other
components of the same entity),
(ii)
whose operating results are regularly reviewed by the entity's chief operating
decision maker to make decisions about resources to be allocated to the
segment and assess its performance, and
(iii) for which discrete financial information is available.
The company maintains an integrated operating structure and its operations are
reviewed by management and directors as a whole and not in segments.
Consequently, no segment disclosures are included in the financial statements.
(v) Related parties:
A party is related to the company if:
(i)
70
directly or indirectly, the party:
 controls, is controlled by, or is under common control with the company;
 has an interest in the company that gives it significant influence over the
company; or
 has joint control over the company.
24
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(v) Related parties (continued):
(ii)
the party is a member of the key management personnel of the company. Such
personnel are persons having authority and responsibilities for planning,
directing and controlling the activities of the company whether directly or
indirectly and whether through an executive or non-executive role.
JPS • ANNUAL REPORT 2011
3.
(iii) the party is a close member of the family of any individual referred to in (i) or
(ii) above.
(iv) the party is a post-employment benefit plan for the benefit of employees of the
company, or any entity that is a related party of the company.
The company’s key related party relationships are with its parent company, ultimate
parent company, fellow subsidiaries, the Jamaican Government, directors, key
management personnel and its two pension plans.
(w) Financial instruments and fair values:
A financial instrument is any contract that gives rise to both a financial asset of one
enterprise and a financial liability or equity instrument of another enterprise. For the
purpose of these financial statements, financial assets have been determined to
include cash and cash equivalents, and accounts receivable. Similarly, financial
liabilities include bank overdraft, accounts payable and provisions, due to related
companies, customer deposits and loans. Purchases and sales of financial
instruments are accounted for at settlement dates.
Fair value amounts represent estimates of the arm’s length consideration that would
be currently agreed between knowledgeable, willing parties who are under no
compulsion to act and are best evidenced by a quoted market price, if one exists
Note 29 (c).
(x)
IFRIC 12- Service Concession Arrangements (“Interpretation”)
The company reviewed the Licence to determine whether the arrangement with the
OUR qualified as a service concession arrangement under the Interpretation. The
Licence permits the Government of Jamaica to acquire the company’s electricity
undertaking at the expiration of the term of the licence provided that the Minister
gives at least two years’ prior notice. If the Government of Jamaica exercises its
option, the acquisition price is equal to the fair market value of an ongoing business
concern including the Licence and all lands, building, works, materials, plant and
property of all kinds whatsoever suitable to or intended for the purposes of the
undertaking. Because the acquisition price is for the entire business as opposed to the
underlying infrastructure, the arrangement is not within the scope of the
Interpretation.
25
71
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
3.
Statement of compliance, basis of preparation and significant accounting policies
(continued)
(y)
Comparative balances
JPS • ANNUAL REPORT 2011
Where necessary, comparative figures have been reclassified or restated to conform
with changes in presentation to the current year. In particular, they relate to amounts
restated for property, plant and equipment, depreciation charges and retained
earnings as more fully explained in Note 30. In addition, restricted cash has been
reclassified from cash and cash equivalents and stated as a separate balance in the
statement of financial position.
4.
Power purchase contracts
The company has entered into agreements with independent power providers (IPPs) for the
purchase of energy capacity and net energy output.
The IPP arrangements are:
Jamaica Energy Partners (JEP)
The Jamaica Private Power Company Limited (JPPC)
Jamaica Aluminium Company Limited (JAMALCO)
Wigton Wind Farm Limited (Wigton)
Munro College (Munroe)
Contract termination date
February 2026
January 2018
December 2019
May 2024
December 2012
All agreements are subject to termination prior to the contract dates upon the occurrence of
certain events of default as specified in the agreements, and are renewable for an additional
period, provided the party seeking the extension gives written notice, ranging from two to
six years, before the end of the initial term.
72
26
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
4.
Power purchase contracts (continued)
JPS • ANNUAL REPORT 2011
Certain agreements require payment for available energy capacity and for certain operating
costs and overheads. Additionally, certain agreements require the company to provide a
banker’s guarantee in relation to contractual payments. The company has a financing
arrangement with a financial institution, which guarantees access to funds by IPPs for
contractually agreed payments. The facility was not accessed during the year.
The contracts with JEP, JPPC and Wigton have been assessed as operating leases. The
contracts with JAMALCO and Munroe were not considered arrangements that contain a
lease. The operating leases with JEP and JPPC gave rise to unexpired commitments for
energy capacity and certain operating charges payable at 31 December 2011 as follows:
$’000
Within 1 year
From 1-2 years
From 3-5 years
Over 5 years
5.
44,437
45,257
141,145
383,942
614,781
Restricted cash
This cash is restricted in its use in the manner specified as follows:
Self-insurance sinking fund
Deposit guarantees on staff loans, IPP contracts
etc.
2011
$’000
2010
$’000
17,872
13,606
474
18,346
466
14,072
The self-insurance sinking fund represents cash maintained as part of the self-insurance
sinking fund administered under the direction of the OUR (Note 2).
73
27
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
6.
Accounts receivable
JPS • ANNUAL REPORT 2011
Trade receivables, net (i) & (ii)
Unbilled revenue
Prepayments
Other receivables
2011
$’000
2010
$’000
152,347
105,316
5,273
10,111
273,047
127,320
88,389
5,033
9,163
229,905
(i) Trade receivables are shown net of an allowance for impairment losses as follows:
Balance at beginning of year
Impairment loss recognized
Amounts written off during
the period
Balance at end of year
2011
$’000
2010
$’000
30,654
25,910
16,923
16,327
(18,693)
37,871
( 2,596)
30,654
(ii) The aging of trade receivables at the reporting date was:
2011
Due 0-30 days
Past due 31-60 days
Past due 61-90 days
More than 90 days
Trade accounts receivable
7.
Gross
Receivable
Gross
Impairment
Gross
Receivable
Gross
Impairment
$’000
106,512
14,549
7,671
61,486
190,218
$’000
37,871
37,871
$’000
85,717
8,198
5,552
58,507
157,974
$’000
30,654
30,654
Inventories
Fuel
Generation spare parts
Transmission, distribution and other spares
74
2010
Less: Provision for obsolescence
28
2011
$’000
2010
$’000
13,442
21,109
26,989
61,540
( 1,408)
60,132
10,111
20,530
21,232
51,873
( 280)
51,593
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
8.
Bank overdraft
The bank overdraft is temporary, unsecured and repayable on demand. It represents a book
amount which resulted from timing differences between receipts and disbursements at the
year end.
9.
Short-term loans
JPS • ANNUAL REPORT 2011
The company had no short term loans on record at December 31, 2011. The 2010 balance,
which was fully repaid in 2011, comprised three short term loans denominated in United
States dollars and bearing variable rates ranging from six month LIBOR plus 2% to
LIBOR plus 6.75%.
10. Accounts payable and provisions
Trade payables
Interest accrued on customer deposits and loans
Dividend payable
Other payables and provisions (i)
2011
$’000
2010
$’000
115,053
15,580
3,796
14,443
148,872
91,744
16,550
16,441
3,961
128,696
(i) Other payables and provisions include provisions as follows:
Balance at beginning of year
Provisions made during the year
Provisions utilised during the year
Balance at end of year
Comprising provisions for:
Bonus salaries
Legal and other claims in process
(Note 28)
2011
$’000
2010
$’000
843
2,341
(1,594)
1,590
2,004
13,192
(14,353)
843
2011
$’000
2010
$’000
295
133
1,295
710
1,590
843
75
29
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
11.
Property, plant & equipment
JPS • ANNUAL REPORT 2011
Transmission
Land,
Production
and
Computer
buildings (generation) distribution General equipment, Construction
& land
plant &
plant &
plant & office fixtures work-inequipment equipment machinery & fittings
progress
rights
$’000
$’000
$’000
$’000
$’000
$’000
Total
$’000
At cost or valuation:
31 December 2009, restated
115,746
609,580
869,466
117,219
70,321
43,298
1,825,630
Additions
77
482
11,131
261
51
49,909
61,911
Transfers
1,033
21,225
30,276
1,083
1,544
(55,161)
-
Disposals/retirements
& adjustments
(
31 December 2010, restated
1)
-
-------------
62)
(
-------------
88)
(
------------
762)
(
------------
246)
(
------------
------------
(
-------------
1,159)
116,794
631,199
910,111
118,317
71,915
38,046
1,886,382
Additions
-
862
14,629
492
66
56,464
72,513
Transfers
648
15,457
18,020
623
475
(35,223)
-
Disposals/retirements
& adjustments
Revaluation
31 December 2011
( 21,314)
(
496)
-
-------------
-------------
96,128
647,022
-------------
-------------
(
211)
1)
-
(
-
(
24)
-
(
-
-
( 21,314)
942,549
119,408
72,455
59,287
------------ ------------ ------------ ----------------------- ------------ ------------ ------------
732)
------------1,936,849
-------------
Depreciation:
31 December 2009, restated
12,889
419,390
606,219
99,134
50,960
-
Charge for the year, restated
827
21,126
18,703
2,468
2,592
-
Disposals/retirements
(
1)
(
1)
(
11)
(
19)
(
1)
-
1,188,592
45,716
(
33)
-------------
-------------
------------
------------
------------
------------
-------------
31 December 2010, restated
13,715
440,515
624,911
101,583
53,551
-
1,234,275
Charge for the year, restated
844
22,328
19,514
2,358
2,689
-
Disposals/retirements
31 December 2011
-
------------14,559
(
470)
------------462,373
-------------
-------------
(
211)
(
11)
(
1)
-
------------ ------------ ------------ -----------644,214
103,930
56,239
-
------------ ------------ ------------ ------------
47,733
(
693)
------------1,281,315
-------------
Net book values:
31 December 2011
81,569
184,649
298,335
15,478
16,216
59,287
=======
=======
=======
======
======
======
=======
31 December 2010, restated
103,079
190,684
285,200
16,734
18,364
38,046
652,107
=======
=======
=======
======
======
======
=======
31 December 2009, restated
102,857
190,190
263,247
18,085
19,361
43,298
637,038
=======
=======
=======
======
======
======
=======
76
30
655,534
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
11.
Property, plant & equipment (continued)
(a) Land, buildings and land rights include land, at valuation, aggregating approximately
$52.6 million (2010: $73.9 million). Land, which is considered a separate class of
assets, was revalued by independent professional valuators during 2011 resulting in a
revaluation deficit of $21.3 million. Land at cost amounted to $27 million.
JPS • ANNUAL REPORT 2011
(b) Interest capitalised during construction for the year amounted to approximately $1.7
million (2010: $1.4 million). The capitalisation rate used for the year was 0.4253 %
(2010: 0.4435%).
(c) The composite rate of depreciation for the year was approximately 4.2% (2010:
4.2%).
12.
Intangible assets
This represents acquired software costs capitalised as follows:
2011
$’000
2010
$’000
7,454
1,071
-
6,754
700
-
At end of year
8,525
7,454
Amortisation:
At beginning of year
Charge for the year
Adjustment
2,315
640
-
1,857
458
-
At end of year
2,955
2,315
Net book value
5,570
5,139
Cost:
At beginning of year
Additions
Adjustment
77
31
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
13.
Employee benefits
(a)
Defined benefit pension plan
JPS • ANNUAL REPORT 2011
The company administers a defined-benefit pension plan for its permanent
employees. The assets of the plan are under the control of trustees and are managed
by certain approved investment fund managers. Administrative services are
provided by three Fund Managers; Sagicor Life of Jamaica Limited, Prime Asset
Management Limited and NCB Insurance Company Limited.
(i) Employee benefits:
2011
$'000
Present value of funded obligations
Fair value of plan assets
Unrecognised amount due
to limitation
Asset recognised in statement of financial position
2010
$'000
( 50,995)
105,355
(47,521)
92,135
( 27,180)
27,180
(22,307)
22,307
(ii) Movements in funded obligations:
Balance at beginning of year
Benefits paid
Current service and interest costs
Annuities purchased
Gain (loss) on curtailment/settlement
Actuarial (loss) gain
Exchange (loss) gain
Balance at end of year
78
32
2011
$'000
2010
$'000
(47,521)
1,612
( 7,035)
2,634
( 685)
(50,995)
(29,660)
4,429
(6,748)
349
413
(16,118)
( 186)
(47,521)
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Employee benefits (continued)
(a)
Defined benefit pension plan (continued):
(iii) Movements in plan assets:
Fair value of plan assets at
beginning of year
Contributions paid
Expected return on plan assets
Benefits paid
Annuities purchased
Refund to company
Actuarial gain
Exchange (loss) gain
Fair value of plan assets at end of year
Plan assets consist of the following:
Equities
Fixed income securities
2011
$'000
2010
$'000
92,135
4,277
9,268
( 1,612)
2,074
(
787)
73,784
3,826
11,400
( 4,429)
(349)
(349)
5,040
3,212
105,355
92,135
2011
$'000
2010
$'000
27,074
78,281
27,123
65,012
105,355
92,135
JPS • ANNUAL REPORT 2011
13.
(iv) Expense (credit) recognised in the statement of comprehensive income:
2010
2011
$'000
$'000
Current service costs
Interest on obligations
Expected return on plan assets
Net actuarial loss (gain) recognised
during the year
Annuities purchased
(Gain) loss on curtailment /settlement
Total expense (credit)
1,264
5,375
( 9,268)
1,474
4,784
(11,400)
( 4,708)
( 7,337)
11,077
( 349)
( 413)
5,173
Net (credit) expense recognised
due to limitation
( 3,669)
2,587
Actual return on plan assets
11,342
33
16,440
79
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
13.
Employee benefits (continued)
(a)
Defined benefit pension plan (continued):
The (credit) expense is recognised in operating & maintenance, selling, general &
administrative expenses in the statement of comprehensive income.
JPS • ANNUAL REPORT 2011
(v) Principal actuarial assumptions at the statement of financial position date
(expressed as weighted averages):
2011
Discount rate
Expected return on plan assets
Future salary increases
Future pension increases
2010
10%
11%
9.5%
10%
5%
7%
2%
2%
======== ========
Assumptions regarding future mortality are based on PA(90)M and PA(90)F tables
with ages reduced by six years. The expected long-term rate of return is based on the
assumed long-term rate of inflation.
The company’s estimated contribution for the 12 months subsequent to the year end
is $1.95 million.
(b)
Other employee benefit obligations:
Other employee benefit obligations comprise:
Accumulated sick and vacation pay
80
34
2011
$’000
2010
$’000
9,050
8,253
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Employee benefits (continued)
(c)
Historical information
(i)
Defined benefit pension plan:
2011
$’000
Present value of the defined
benefit obligations
( 50,995)
Fair value of plan assets
105,355
-------------Surplus
54,360
=======
Experience adjustments
arising on plan liabilities
3,044
=======
Experience adjustments
arising on plan assets
2,074
=======
(ii)
2010
$’000
2009
$’000
2008
$’000
2007
$’000
(47,521)
92,135
-------------44,614
=======
(29,660)
73,784
-------------44,124
=======
(55,241)
97,832
-------------42,591
=======
( 49,149)
122,174
--------------73,025
=======
( 1,122)
=======
( 1,629)
=======
( 2,201)
=======
( 1,813)
=======
5,040
=======
6,724
=======
(20,838)
=======
2,235
=======
JPS • ANNUAL REPORT 2011
13.
Post-employment medical and life insurance obligation benefit:
Present value of the
post-employment benefit
obligations
Experience adjustments
arising on plan liabilities
2011
$’000
2010
$’000
2009
$’000
2008
$’000
2007
$’000
=======
=======
=======
8,218
=======
8,746
=======
=======
=======
=======
792
=======
1,055
=======
(d) Defined contribution pension plan:
The company’s contribution to the defined contribution pension plan for the year
aggregated $352,000 (2010: $334,000). These are recognised in operating &
maintenance, selling, general and administrative expenses in the statement of
comprehensive income.
81
35
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
14.
Other asset
This represents the long term portion of interest free loans provided by the company to
certain of its customers for wiring of houses, that are recoverable over a period of sixty
months. The short term portion amounting to $484,000 is included in other receivables
(Note 6)
JPS • ANNUAL REPORT 2011
15.
Share capital
Authorised:
Ordinary share capital:
315,733,190
30,000,000,000
-------------------------30,315,733,190
=============
Ordinary stock units at no par value
Ordinary shares at no par value
Cumulative preference shares of no par value
567,000
7% “B” shares
66,500
5% “C” shares
1,049,000
5% “D” shares
514,000
6% “E” shares
----------------------2,196,500
============
Stated capital:
Issued and fully paid:
Ordinary share capital:
315,733,190
21,512,462,056
Ordinary stock units
Ordinary shares
21,828,195,246
Cumulative preference
shares:
420,000
66,500
680,000
300,000
7% “B” shares
5% “C” shares
5% “D” shares
6% “E” shares
1,466,500
82
36
2011
$’000
2010
$’000
5,684
256,102
5,684
256,102
261,786
261,786
38
6
61
27
38
6
61
27
132
132
261,918
261,918
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
15.
Share capital (continued)
The cumulative preference shares are non-voting and are preferred only in respect of return
of capital and any dividends in arrears on a winding up.
Capital reserve
Revaluation surplus
2011
$’000
2010
$’000
20,043
========
41,357
========
2011
$’000
2010
$’000
19,131
11,927
-------------31,058
=======
18,745
10,088
------------28,833
=======
JPS • ANNUAL REPORT 2011
16.
This represents the net surplus arising on the revaluation of land.
17.
Customer deposits
Customer deposits for electricity service (i)
Customer advances for construction (ii)
(i)
In general, the company requires a deposit from customers before providing service.
The deposit is refundable upon termination of service subject to certain conditions.
Interest is paid annually to customers and applied to their electricity accounts
according to rates prescribed by the OUR (Note 2), which are broadly equivalent to
rates applicable to savings deposits.
(ii)
Customer advances for construction relate to non-interest-bearing deposits obtained
by the company in relation to construction projects being undertaken by potential
customers. These amounts are refundable subject to certain conditions.
83
37
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
18.
Long-term loans
JPS • ANNUAL REPORT 2011
(a)
Kreditanstalt fur Weideraudfbau of Frankfurt/
Government of Jamaica (KFW/GOJ), 7% fixed
rate, repayable 2030 [€3.9 million]
2011
$’000
2010
$’000
5,010
5,150
(b)
International Finance Corporation (IFC)
variable rate, repayable 2015 [$45 million]
20,000
25,000
(c)
International Finance Corporation (IFC)
variable rate, repayable 2020 [$30 million]
29,160
19,264
(d)
National Commercial Bank
13.25% fixed rate, repayable 2012 [J$3.6B]
-
22,095
(e)
Deutsche Bank as trustees of the holders of the 11%
Senior notes due 2021 [$180 million]
174,708
175,176
(f)
FirstCaribbean International Bank (FCIB)
variable rate, repayable 2012 [$35 million]
23,650
29,052
(g)
Espirito Santo Bank
6.5% fixed rate, repayable 2016[$7.68 million]
6,339
2,326
(h)
NCB Syndicated Loan
variable rate, repayable 2012 [$5.9 million]
4,214
4,976
(i)
First Global Financial Services
10.4% fixed rate, repayable 2011 [$11.5 million]
-
11,452
(j)
Peninsula Corporation
7.9% fixed rate, repayable 2012 [$14.95 million]
-
14,950
(k)
Citibank NA
7.15% fixed rate, repayable 2012 [$5 million]
-
5,000
(l)
Export Development Canada
variable rate, repayable 2015 [$5.474 million]
4,659
2,155
(m)
Citibank Japan/NEXI
variable rate, repayable 2020 [$65 million]
54,593
-
(n)
Proparco
variable rate, repayable 2020 [$60.5 million]
58,947
-
(o)
OPEC Fund for International Development
variable rate, repayable 2020 [$25 million]
24,508
-
-----------------
-------------
-----------------
-------------
405,788
316,596
( 49,493) ( 24,317)
Less: Current portion
84
[These amounts represent the original principal value of loans received.]
38
356,295
292,279
========= ==========
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Long-term loans (continued)
(a)
This loan was received from the Government of Jamaica (GOJ), based on a formal
on-lending agreement dated January 17, 1996. Under the terms of the original
agreement with KFW, the loan is unsecured and repayable commencing in 2010
through 2030. Interest is payable semi-annually in arrears.
(b)
This loan is repayable in eighteen semi-annual instalments of $2,500,000, which
commenced February 2007. The variable interest rate is based on LIBOR plus 7.5%
per annum until February 2007 and a spread of 6% thereafter. As at December 31,
2011, the rate so determined was 6.48% (2010: 6.51%). The loan is secured by a
fixed and floating charge over certain assets of the company.
(c)
This loan is unsecured and repayable in eighteen semi-annual instalments of
$1,666,666.66, commencing March 2012. The variable interest rate is based on
LIBOR plus 5%, and the rate so determined as at 31 December 2011 was 5.4610%.
Interest is paid semi-annually commencing March 2011. During the year the
company drew down a further $10M on this facility. The amount due is stated net of
debt issuance costs of $840,000 associated with the issue.
(d)
This was an unsecured loan which was repayable in full at maturity on March 31,
2012. The 13.25% fixed interest was repayable in quarterly instalments. The amount
due was stated net of debt issuance costs of $34,000 associated with the issue. The
outstanding principal was repaid in full on March 31, 2011.
(e)
This represents unsecured 11% Senior Notes issued on the US bond market and is
tradable in Portal, a subsidiary of Nasdaq Stock Market, Inc. The Notes are payable
in full on maturity; $179,189,000.00 to mature on July 6, 2021 and $811,000.00 to
mature on July 6, 2016. Interest payments are to be made on 6 January and 6 July
annually with record dates of 23 December and 22 June, respectively, and interest
rates of 11% for 180/360 of principal amounts outstanding as at record dates. No
collateral is required
The amount due in respect of Senior Notes is stated net of debt issuance costs
associated with the issue, as follows:
2011
2010
$’000
$’000
Cost:
6,871
At beginning of year
6,871
Additions/ adjustment
944
-------------------------At end of year
7,815
6,871
-------------------------Amortisation:
At beginning of year
2,047
1,449
Amortisation charge for the year, net
476
598
--------------------------At end of year
2,523
2,047
--------------------------5,292
4,824
=======
=======
39
JPS • ANNUAL REPORT 2011
18.
85
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
JPS • ANNUAL REPORT 2011
18.
Long-term loans (continued)
(f)
This loan is unsecured and repayable in four (4) semi-annual instalments of $2.8M
and the balance at maturity. As at 31 December 2011, the interest rate determined
was 7.09775%. On January 1, 2011 JPS negotiated a reduction in interest rate from 6
month LIBOR + 8.5% to 6 month LIBOR + 6.7%. The amount due is stated net of
debt issuance costs of $150,000 associated with the issue.
(g)
This is an unsecured loan facility for which the utilization of the funds was restricted
to capital expenditure on goods originating in the United States. The amounts were
drawn down on various dates and principal and interest are repayable semi-annually
for each draw-down. The balance is scheduled to be repaid in full in August 2016.
The amount due is stated net of debt issuance costs of $743,000 associated with the
issue.
(h)
This loan is unsecured and repayable in semi-annual instalments of $421K and the
balance at maturity. As at 31 December 2011, the rate determined was 7.15928%. On
1 January 2011 JPS negotiated a reduction in interest rate from 6 month LIBOR plus
8.5% to 6 month LIBOR plus 6.7%. The amount due is stated net of debt issuance
costs of $81,000 associated with the issue.
(i)
This loan was unsecured and repayable in full at maturity. The 10.4% fixed interest
was payable in eight (8) quarterly instalments until December 2011. The amount due
was stated net of debt issuance costs of $98,000 associated with the issue.
(j)
This loan was unsecured and repayable by bullet payment at maturity. The 7.9%
fixed interest was payable in quarterly instalments until March 2012. The loan was
repaid in full in December 2011.
(k)
This loan was unsecured with principal and interest repayable in full at maturity on
12 January 2012. The loan was repaid in full in December 2011.
(l)
This loan is unsecured and attracts interest at the rate of 6 month LIBOR plus 1.60%.
The utilization of the funds was restricted to capital expenditure on goods originating
in Canada. The principal amounts were drawn on various dates with interest and
principal repayable semi-annually for each draw-down. (The amount of $3,319,000
was drawn-down during the year). The interest rate as at December 31, 2011 was
2.0588%. The amount due is stated net of debt issuance costs of $186,000 associated
with the issue.
86
40
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
18.
Long-term loans (continued)
19.
(n)
This loan is unsecured and is repayable in eighteen semi-annual instalments of
$3,361,111.11, which will commence in May 2012. The variable interest rate is
based on LIBOR plus 5.0% per annum. As at 31 December 2011, the rate so
determined was 5.72263%. The amount due is stated net of debt issuance costs of
$1,553,000 associated with the issue.
(o)
This loan is unsecured and is repayable in eighteen semi-annual instalments of
$1,388,888.89, which will commence in May 2012. The variable interest rate is
based on LIBOR plus 5.0% per annum. As at 31 December 2011, the rate so
determined was 5.4026%. The amount due is stated net of debt issuance costs of
$493,000 associated with the issue.
JPS • ANNUAL REPORT 2011
(m) This loan is unsecured and is repayable in sixteen semi-annual instalments of
$4,062,500, which will commence in June 2013. Interest is also paid semi-annually.
The variable interest rate is based on LIBOR plus 1.70% per annum. As at 31
December 2011, the rate so determined was 2.2870%. The amount due is stated net
of debt issuance costs of $10,407,000 associated with the issue and calculated on the
overall approved loan amount of $100,000,000.
Deferred taxation
Deferred tax (liabilities) assets relate to:
Employee benefits, net
Accounts receivable
Accounts payable and
provisions
Unrealised foreign
exchange gains
Property, plant &
equipment
Unamortised debt
issuance costs
Restated
balance at 1
January
2010
$’000
Restated
recognised in
statement of
comprehensive
income
$’000
Restated
balance at 31
December
2010
$’000
Recognised in
statement of
comprehensive
income
$’000
Balance at
31 December
2011
$’000
( 4,533)
506
(152)
(236)
( 4,685)
270
(1,358)
394
( 6,043)
664
5,781
( 22)
5,759
( 134)
5,625
571)
130
(
441)
28
(62,488)
753
(61,735)
3,120
(58,615)
( 2,071)
(63,376)
(120)
353
( 2,191)
(63,023)
(4,364)
(2,314)
( 6,555)
(65,337)
(
(
413)
87
41
«
Notes to the financial Statements
JAMAICA PUBLIC SERVICE COMPANY LIMITED
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
20.
Operating revenue
The company's revenue arises from the supply of electricity services in accordance with
the Licence (Notes 1 and 2).
Disclosure of expenses (income) and related party transactions
(a)
Operating profit before net finance costs, other income, other expenses and taxation
is stated after charging:
2011
2010
$’000
$’000
Directors’ remuneration:
Fees
62
41
Emoluments
278
260
Pensions to former managing directors
8
7
Compensation for key management:
Short term benefits
2,721
2,406
Staff costs
70,763
71,638
Audit fees (including GCT):
Current year
173
166
Prior year
46
Depreciation and amortisation
48,373
46,141
Pension (credit)/expense
( 3,669)
2,587
========
========
(b)
The company has various ongoing transactions with related companies. These
include the provision of technical support and related professional services and the
acquisition of specialised equipment and spare parts. These transactions amounted to
approximately $3.0 million (2010: $1.5 million). In addition, the Company provides
electricity for its related parties including the Government of Jamaica. All the above
transactions were executed in the ordinary course of business.
JPS • ANNUAL REPORT 2011
21.
88
42
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
22.
Net finance costs
Foreign exchange (losses) gains, net
Other finance costs:
Short-term loans
Long-term loans
Customer deposits
Bank overdraft and other
Debt issuance costs and expenses
Finance income:
Interest income
Interest capitalised during construction (Note 11)
2011
$’000
2010
$’000
( 3,276)
----------------
7,207
----------------
( 1,208)
(32,568)
( 894)
( 1,085)
( 3,329)
---------------(39,084)
----------------
( 2,835)
(31,925)
( 2,806)
( 834)
( 2,679)
---------------(41,079)
----------------
JPS • ANNUAL REPORT 2011
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
1,472
1,124
1,675
1,360
------------------------------3,147
2,484
------------------------------(39,213)
(31,388)
========
========
Interest income arises materially from treasury transactions entered into in the ordinary
course of business.
89
43
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
23.
Other income and expenses
(a)
Other income comprises:
JPS • ANNUAL REPORT 2011
Rental income
Insurance proceeds
Refund of surplus in IPP Debt Service Reserve Account
Miscellaneous proceeds from scrap sales
and other settlements
(b)
Other expenses comprise:
Restructuring cost
Hurricane restoration costs
Miscellaneous expenses
Inventory write off
2011
$’000
2010
$’000
351
224
2,969
444
2,120
-
1,586
---------------5,130
========
2,378
---------------4,942
========
2011
$’000
2010
$’000
( 969)
( 92)
( 232)
(1,128)
---------------(2,421)
========
90
44
(7,000)
(1,089)
( 95)
( 280)
---------------(8,464)
========
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Taxation
(a)
(b)
Taxation is computed at 33⅓% of the company’s results for the year, adjusted for tax
purposes and comprises:
Restated
2011
2010
$’000
$’000
Current income tax expense
(16,546)
(16,894)
Prior year under-accrual
( 1,823)
Origination and reversal of temporary differences
( 2,314)
353
------------------------------Taxation expense
(18,860)
(18,364)
========
========
Reconciliation of tax expense:
2011
2010
$’000
$’000
Profit before taxation
53,211
58,247
------------------------------Computed “expected” tax @ 33⅓%
(17,737)
(19,415)
Tax effect of differences between profit for
financial statements and tax reporting purposes
in respect of:
Investment allowances
5,025
3,821
Prior year under-accrual
( 1,823)
Tax on unamortized loan discount
( 5,145)
Other disallowed items
( 1,003)
( 947)
------------------------------Taxation expense
(18,860)
(18,364)
========
========
JPS • ANNUAL REPORT 2011
24.
91
45
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
25.
Earnings per share/stock unit
JPS • ANNUAL REPORT 2011
Profit for the year
Less: Preference dividends (Note 26)
Number of shares/stock units
[shown in thousands (Note 15)]
Earnings per share/stock unit
26.
Dividends
Ordinary dividends:
Interim dividend declared
Preference dividends:
5-7% Cumulative preference shares (Notes 15 and 25)
Ordinary dividend per share /stock unit
2011
$’000
Restated
2010
$’000
34,351
(
2)
----------------34,349
=========
39,883
(
3)
----------------39,880
=========
21,828,195
=========
0.15¢
=========
21,828,195
=========
0.18¢
=========
2011
$’000
2010
$’000
44,000
44,000
2
----------------44,002
=========
0.20 ¢
=========
3
----------------44,003
=========
0.20 ¢
=========
The preference dividends were paid on a quarterly basis in both years.
27.
Commitments
Commitments for capital expenditure, for which no provision has been made in these
financial statements, amounted to approximately $1.5 million (2010: $4 million).
In addition to its commitments under IPP contracts (Note 4), the company had unexpired
operating lease commitments at 31 December 2011 payable as follows:
Within 1 year
From 1-2 years
From 2-3 years
From 3-4 years
From 4-5 years
Over 5 years
92
46
2011
$’000
2010
$’000
8,279
7,949
834
150
150
3,769
----------------21,131
=========
8,693
9,498
9,872
152
152
3,944
-----------------32,311
=========
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
27.
Commitments (continued)
Lease payments under operating leases including IPP contracts (Note 4) recognised in the
statement of comprehensive income for the year aggregated approximately $80.2 million
(2010: $71.8 million).
Contingent liabilities
JPS • ANNUAL REPORT 2011
28.
As at 31 December 2011, the company is subject to various lawsuits in the normal course
of business. The outcome of these lawsuits cannot be determined with certainty. However,
in the opinion of management and its legal counsel, it is probable that an outflow will be
made by the company and as such a provision of $1.3 million (2010: $0.7 million) was
made in the financial statements.
29.
Financial instruments
(a)
Financial risk management:
The company has exposure to the following risks from its use of financial
instruments:




Credit risk
Liquidity risk
Market risks
Operational risks
This note presents information about the company’s exposure to each of the above
risks arising in the ordinary course of the company’s business, the company’s
objectives, policies and processes for measuring and managing risk, and the
company’s management of capital.
The Board of Directors, in managing the business of the company, oversees the
company’s risk management framework. Key management has responsibility for
monitoring the company risk management policies in their specified areas and report
quarterly to the Board of Directors on their activities.
The company’s risk management policies are established to identify and analyse the
risks faced by the company, to set appropriate risk limits and controls, and to
monitor risk and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions. The company, through
training and management standards and procedures, aims to develop a disciplined
and constructive control environment, in which all employees understand their roles
and obligations.
47
93
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
29.
Financial instruments (continued)
(a)
Financial risk management (continued)
JPS • ANNUAL REPORT 2011
The company’s parent company has monitoring oversight of the risk management
policies and is assisted in these functions by the company’s internal audit
department. The internal audit department undertakes both regular and ad-hoc
reviews of risk management controls and procedures, the result of which are
reported to the Board of Directors.
(i)
Credit risk:
Credit risk is the risk of financial loss to the company if a customer or
counterparty to a financial instrument fails to meet its contractual obligations,
and arises principally from the company’s trade receivables, which is stated
net of an allowance for doubtful balances.
As part of its management of credit risk, the company requires account
deposits from certain customers. Additionally, management has processes in
place for the prompt disconnection of services to, and recovery of amounts
owed by, defaulting customers.
The company establishes an allowance for impairment losses that represents its
estimate of incurred losses in respect of trade and other receivables. The main
component of this allowance is a specific loss component that relates to
individually significant exposures. The loss allowance is determined based on
historical payment statistics for similar financial assets and an assessment of
the debtor’s ability to settle debt.
At 31 December 2011, the company had significant concentrations of credit
risk in respect of amounts receivable from the Government of Jamaica and its
affiliates, in respect of electricity charges, aggregating $40.45 million (2010:
$24.98 million).
(ii)
Liquidity risk:
Liquidity risk, also referred to as funding risk, is the risk that the company will
encounter difficulty in raising funds to meet commitments associated with
financial instruments. Liquidity risk may result from an inability to sell a
financial asset quickly at, or close to, its fair value. Prudent liquidity risk
management implies maintaining sufficient cash and marketable securities,
and the availability of funding through an adequate amount of committed
credit facilities.
94
The company’s approach to managing liquidity is to ensure, as far as possible,
that it will always have sufficient liquidity to meet its liabilities when due,
under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to its reputation.
48
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Financial instruments (continued)
(a)
Financial risk management (continued)
(ii)
Liquidity risk (continued)
Key management of the company, in conjunction with its ultimate holding
company, aims at maintaining flexibility in funding by keeping lines of funding
available as well as by acquiring and maintaining prudent cash resources in
appropriate currencies. For example, the company’s treasury department
receives and monitors information from other departments regarding the
liquidity profile of their financial assets and liabilities and maintains a portfolio
of short-term liquid assets and loans to ensure that sufficient liquidity is
maintained within the company as a whole. As at 31 December 2011, the
company had unutilised lines of credit aggregating $86.7million (2010: $36
million).
JPS • ANNUAL REPORT 2011
29.
An analysis of the contractual maturities of the company’s financial liabilities is
presented below. The analysis provided is by estimating timing of the amounts
recognised in the statement of financial position.
31 December 2011:
Accounts payable
Loans
Due to related companies
Customer deposits
Total financial liabilities
31 December 2010:
Accounts payable
Loans
Due to related companies
Customer deposits
Total financial liabilities
Carrying
Amount
$’000
Contractual undiscounted cash flows
Total
Less
cash
than
1-2
3-5
outflow
1 year
years
years
$’000
$’000
$’000
$’000
6-10
years
$’000
More
than
10 years
$’000
147,282
147,282
147,282
405,788
405,788
49,493 29,007
912
912
912
31,058
31,058
------------------ ------------------ ------------------ ---------------585,040
585,040
197,687 29,007
========= ========= ========= ========
84,960
-------------84,960
=======
160,336
81,992
6,443
24,615
----------------- -----------------166,779
106,607
========
========
127,853
127,853
127,853
343,237
343,237
50,958 73,717
41
41
41
28,833
28,833
------------------ ------------------ ------------------ ---------------499,964
499,964
178,852 73,717
========= ========= ========= ========
30,060
-------------30,060
=======
185,728
6,761
----------------192,489
========
2,774
22,072
-----------------24,846
========
Contracted off-balance cash payments in respect of independent power
purchase agreements are disclosed in Note 27.
95
49
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
29.
Financial instruments (continued)
(a)
Financial risk management (continued)
(iii) Market risk
JPS • ANNUAL REPORT 2011
Market risk is the risk that changes in market prices, such as interest rates,
foreign exchange rates and equity prices will affect the value of the company’s
assets, the amount of its liabilities and/or the company’s income. Market risk
arises in the company due to fluctuations in the value of assets and liabilities.
The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return on risk.
The nature of the company’s exposures to market risks and its objectives,
policies and processes for managing these risks have not changed significantly
over the prior period. For each of the major components of market risk the
company has policies and procedures in place which detail how each risk is
managed and monitored. The management of each of these major components
of market risk and the exposure of the company at the reporting date to each
major risk are addressed below.
Derivative financial instruments are not presently used to reduce exposure to
fluctuations in interest and foreign exchange rates.
At 31 December 2011, the company had no exposure to market risk relating to
changes in equity prices.

Interest rate risk:
Interest rate risk is the risk that the value of a financial instrument will
fluctuate due to changes in market interest rates.
The company contracts financial liabilities at fixed or floating interest rates.
These primarily relate to loans, customer deposits, certain trade payables
and bank overdrafts.
The maturity profiles and interest rates of the company’s long-term loans
are disclosed in Note 18, the details of short-term loans in Note 9 and of
customer deposits in Note 17.
Interest bearing financial assets relate to cash and cash equivalents.
96
50
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Financial instruments (continued)
(a)
Financial risk management (continued)
(iii) Market risk (continued)

Interest rate risk (continued):
At 31 December 2011, the interest profile of the company’s interest-bearing
financial instruments was:
Carrying amount
2011
2010
$'000
$'000
Fixed rate instruments:
Financial assets
21,132
18,933
Financial liabilities
(186,057) (236,149)
------------------ -----------------Variable rate instruments:
Financial liabilities
(238,861) (125,833)
------------------ ------------------
JPS • ANNUAL REPORT 2011
29.
Fair value sensitivity analysis for fixed rate instruments:
The company does not account for any fixed rate financial assets and
liabilities at fair value through profit or loss. Therefore a change in interest
rates at the reporting date would not affect the statement of comprehensive
income.
Cash flow sensitivity analysis for variable rate instruments:
A change of 100 basis points in interest rates at the reporting date would
have increased/(decreased) equity and profit or loss by the amounts shown
below. This analysis assumes that all other variables, in particular foreign
currency rates, remain constant. The analysis is performed on the same basis
for 2010.
2011
Effect on
profit or loss
100bp
100bp
increase decrease
Cash flow sensitivity (net)
(2,389)
======
2,389
======
2010
Effect on
profit or loss
100bp
100bp
increase
decrease
(1,258)
=======
1,258
=======
97
51
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
29.
Financial instruments (continued)
(a)
Financial risk management (continued)
(iii) Market risk (continued)

Foreign currency risk:
JPS • ANNUAL REPORT 2011
Foreign currency risk is the risk that the value of a financial instrument will
fluctuate due to changes in foreign exchange rates.
The company incurs foreign currency risk primarily on purchases and
borrowings that are denominated in a currency other than the United States
dollar. The currencies giving rise to significant foreign currency risk are the
Jamaica dollar (J$) and Euro (€).
The company manages foreign exchange exposure by maintaining adequate
liquid resources in appropriate currencies and by managing the timing of
payments on foreign currency liabilities.
The table below shows the company’s foreign currency exposure, at the
statement of financial position date:
J$
$'000
2011
€
$'000
Cash and cash
equivalents
388,618
Trade and other
receivables
23,200,960
Other assests
410,315
Accounts payable
and provisions ( 5,228,049)
Long-term loans
- (3,879)
Customer
deposits
( 2,689,621)
--------------------- -------------16,082,223
(3,879)
=========== =======
98
52
US$
$'000
J$
$'000
2010
€
$'000
US$
'000
4,487
542,734
-
6,321
267,907
4,738
19,215,673
-
-
223,799
-
(63,764)
( 5,010)
( 4,078,527)
( 1,900,000)
(31,058)
---------------177,300
========
(2,325)
(3,879)
(50,623)
(27,279)
( 2,475,555)
(28,833)
-------------------- -------------- ---------------11,304,325
(6,204) 123,385
========== ======= ========
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Financial instruments (continued)
(a)
Financial risk management (continued)
(iii) Market risk (continued):

Foreign currency risk (continued):
Sensitivity analysis:
A 5% strengthening of the United States dollar (the company’s principal
foreign currency) against the Jamaica dollar and the Euro would have
increased (decreased) equity and profit or loss by the amounts shown
below. This analysis assumes that all other variables, in particular interest
rates, remain constant. The analysis is performed on the same basis for
2010.
J$
Euro (€)
Total
Equity
$’000
2011
Profit/(loss)
$’000
(9,115)
250
(9,115)
250
Equity
$’000
(6,583)
414
2010
Profit/(loss)
$’000
(6,583)
414
----------------
----------------
----------------
----------------
========
========
========
========
(8,865)
(8,865)
(6,169)
JPS • ANNUAL REPORT 2011
29.
(6,169)
A 5% weakening of the United States dollar against the Euro and the
Jamaican dollar, respectively, at year end would have had the equal but
opposite effect on the above currencies to the amounts shown above, on the
basis that all other variables remain constant.
(iv) Operational risk:
Operational risk is the risk of direct or indirect loss arising from a wide variety
of causes associated with the company’s processes including regulatory risk,
personnel, technology and infrastructure, and from external factors other than
credit, market and liquidity risks such as those arising from legal and regulatory
requirements and generally accepted standards of corporate behaviour.
The company’s objective is to manage operational risk so as to balance the
avoidance of financial losses and damage to its reputation with overall cost
effectiveness and to avoid control procedures that restrict initiative and
creativity.
The primary responsibility for the development and implementation of controls
to address operational risk is assigned to senior management within the
company.
53
99
«
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
«
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
29.
Financial instruments (continued)
(b)
Capital risk management:
JPS • ANNUAL REPORT 2011
Capital risk is the risk that the company fails to comply with mandated regulatory
requirements, resulting in a breach of its operating Licence and the possible adverse
effects on its tariff structure in accordance with its Licence (Note 2). The company’s
objectives when managing capital, which is a broader concept than the ‘equity’ on
the face of the statement of financial position, are:




To comply with the operational requirements set by the regulators;
To safeguard the company’s ability to continue as a going concern so that it
can continue to provide returns for shareholders and benefits for other
stakeholders;
To maintain creditor and market confidence; and
To maintain a strong capital base to support the development of its business.
There were no changes in the company’s approach to capital management during the
year.
(c)
Fair value disclosure:
(i)
The amounts reflected in the financial statements for cash and cash
equivalents, accounts receivable, related party balances, bank overdraft,
accounts payable and provisions, and short-term loan are assumed to
approximate to their fair values because of their short term nature. The
carrying value of loans with variable interest rates approximates fair value as
interest rates approximate market rates. The fair value of loans with fixed
interest rates is approximately $79,252,000 (carrying value $186,057,000),
which is estimated by discounting future cash flows using rates currently
available for debt on similar terms, credit risk and remaining maturities.
Additionally, the cost of all monetary assets and liabilities has been
appropriately adjusted to reflect estimated losses on realisation or discounts on
settlement.
(ii)
The fair value of customer deposits and refundable customer advances cannot
practically be determined, as payment dates and amounts are not determinable.
100
54
Notes to the financial Statements
YEAR ENDED 31 DECEMBER 2011
Expressed in United States Dollars
JAMAICA PUBLIC SERVICE COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2011
(Expressed in United States Dollars)
Prior year adjustments
During 2004 and 2007 the company's transmission and distribution networks sustained
significant damage as a result of hurricanes Ivan and Dean, respectively. The restoration
costs were recognized as expenses during the years in which they were incurred. The prior
year adjustments are being made to derecognize the distribution network destroyed by
those hurricanes and to recognize the enhancements to the network as required under IAS
16. The financial statements for 2009, the earliest period presented, and 2010 have been
restated to correct this error. The effects of the restatement on those financial statements
are summarized below:
Effect on
Property, Plant
and Equipment
$'000
Effect on
Retained
Earnings
$'000
Balance as at 31 December 2009,
previously reported
Effects of prior year adjustments
Balance as restated at 31 December 2009
630,599
6,439
637,038
96,490
6,439
102,929
Balance as at 31 December 2010,
previously reported
Effects of prior year adjustments
As restated at 31 December 2010
645,794
6,313
652,107
92,496
6,313
98,809
JPS • ANNUAL REPORT 2011
30.
Effect on
Statement of
Comprehensive
Income
$'000
2010 net profit for the year , previously
reported
Effects of prior year depreciation
adjustments
2010 net profit for the year, as restated
40,009
(
126)
39,883
101
55
«
notice of meeting
«
NOTICE IS HEREBY GIVEN that the Annual General Meeting of Jamaica Public Service
Company Limited will be held on 31 st day of July, 2012 at the Company’s registered
offices, 6 Knutsford Boulevard, Kingston 5 commencing at 10:00 a.m. for the
following purposes:
JPS • ANNUAL REPORT 2011
1. TO RECEIVE THE ACCOUNTS
To receive the Audited Accounts for the year ended December 31, 2011 and the
Reports of the Directors and Auditors thereon and to consider and (if thought fit) pass the
following resolution:
“That the Accounts for the year ended December 31, 2011 together with the Reports of
the Directors and Auditors thereon be approved and adopted”
2. TO APPROVE AND RATIFY INTERIM DIVIDENDS:
i.
RESOLVED that this Board HEREBY APPROVES an interim dividend of the Jamaican
equivalent of Twelve Million Five Hundred Thousand United States Dollars
(US$12,500,000.00) or 0.00057265 United States cents per share/stock on the Ordinary
Stock/Shares of the Company at the rate of exchange of the Bank of Jamaica’s daily
weighted average selling rate on 15th day of August 2011 payable on the 31st day
of August 2011 to share/stockholders registered at close of business on 16th day of
August 2011. This amount will be distributed out of retained earnings.
ii. RESOLVED that this Board HEREBY APPROVES an interim dividend of the Jamaican
equivalent of Twelve Million Five Hundred Thousand United States Dollars
(US$12,500,000.00) or 0.00057265 United States cents per share/stock on the Ordinary
Stock/Shares of the Company at the rate of exchange of the Bank of Jamaica’s daily
weighted average selling rate on 14th day of October 2011 payable on the 31st day
of October 2011 to share/stockholders registered at close of business on 14th day of
October 2011. This amount will be distributed out of retained earnings.
iii. RESOLVED that this Board HEREBY APPROVES an interim dividend of the Jamaican
equivalent of Nineteen Million United States Dollars (US$19,000,000.00) or 0.00087043
United States cents per share/stock on the Ordinary Stock/Shares of the Company
102
at the rate of exchange of the Bank of Jamaica’s daily weighted average selling rate
on 15th day of December 2011 payable on the 30th day of December 2011 to share/
stockholders registered at close of business on 14th day of December 2011. This
amount will be distributed out of retained earnings.
3. TO ELECT DIRECTORS
In accordance with Article 123 of the Company’s Articles of Association,
i. Professors Gordon Shirley and Evan Windsor Duggan, Mr. Fitzroy Vidal, Ms. Cathrine
Kennedy, and Mr. Masao Imazato having been appointed to the Board since the last
JPS • ANNUAL REPORT 2011
Annual General Meeting shall cease to hold office and, being eligible offer themselves
for election;
The Company is asked to consider, and if thought fit pass the following resolutions:
i. “That Director Gordon Shirley is hereby elected a Director of the Company”.
ii. “That Director Evan Windsor Duggan is hereby elected a Director of the Company”.
iii.“That Director Fitzroy Vidal is hereby elected a Director of the Company”.
iv. “That Director Cathrine Kennedy is hereby elected a Director of the Company”.
v. “That Director Masao Imazato is hereby elected an Alternate Director of the Company”.
4. TO APPOINT AUDITORS AND FIX THEIR REMUNERATION
5. Any other business for which due notice has been given .
13th
June
DATED THIS ....................................
DAY OF ...........................................
2012
BY ORDER OF THE BOARD
Katherine P.C. Francis
Secretary
103
104
JPS • ANNUAL REPORT 2011
«
notes
Form of Proxy
JAMAICA PUBLIC SERVICE COMPANY LIMITED
I/WE ………………………………………………………………of………………………………………………being a
member/members of the above Company hereby appoint the Chairman of the meeting or failing
him ………………………………………………………..of……………………………as my/our Proxy to vote for me/
us on my/our behalf at the Annual General Meeting of the Company to be held on the 31st day
of July at 10:00 a.m. and at any adjournment thereof.
RESOLUTION
FOR
AGAINST
Resolution 1
JPS • ANNUAL REPORT 2011
Resolution 2 (i)
Resolution 2(ii)
Resolution (iii)
Resolution 3(i)
Resolution 3(ii)
Resolution 3(iii)
Resolution 3(iv)
Resolution 4
DATED THE ............................................. DAY OF ............................................... 2012
……………………………………………..
…………………………………
(signature)(signature)
1. If you wish to appoint a proxy other than the Chairman of the Meeting, please insert the
person’s name and address and delete the words “the Chairman of the Meeting or failing
him”. Initial the deletion.
2. Any alteration to this form of proxy should be initialled
3. If the appointer is a corporation this form of proxy must be UNDER ITS COMMON SEAL or
under the hand of some officer or attorney of the corporation DULY AUTHORIZED IN WRITING
4. In case of joint holders the vote of the person whose name stands first on the Register will
be accepted in preference to the vote of the other holders.
5. To be effective this form of proxy and the power of attorney or other (if any) under which it is
signed or a notarially certified copy, of that power or authority must be deposited at Jamaica
Public Service Company Limited, 6 Knutsford Boulevard, Kingston 5 for the attention of the
Secretary not less than forty-eight (48) hours before the time for holding the meeting.
105
«
«
Abdon Campbell
Algon Meikle
Alvin Parchment
Andrea Levy
Adrian Harty
Alicia Ford
Alvin Wilson
Andrea Thomas
Adrian Stewart
Alicia Harris
Alwayne Lewis
Andrea Wallace
Ailia Vaz-Washington
Alicia Lyle
Alwyn Lynch
Andree Foster
Ainsley Bennett
Alicia Prendergast
Andrae Richards
Andrei Dunkley
Ainsley Daniels
Alison Fletcher
Andrain Williams
Andrelene Dunkley
Ainsworth Lawson
Allan Green
Andray Francis
Andrew Chambers
Ainsworth McDonald
Allan Vickers
Andre Brown
Andrew Hall
Akeem Bennett
Allarick Ricketts
Andre Brown
Andrew Hall
Akintola Henry
Allentia Brown
Andre Brown
Andrew Harrison
Al Pilliner
Allison Grant
Andre Cunningham
Andrew Hinds
Alberga Richards
Allison Haynes-Laraque
Andre Foreman
Andrew King
Albert Graham
Allson Thompson
Andre Francis
Andrew Ledford
Albert Green
Alphanso Lewis
Andre’ Gooden
Andrew Lee
Albert Hamilton
Alpheus Wright
Andre Hyatt
Andrew McFarlane
Albert Henry
Alric Williams
Andre Latchman
Andrew McIntosh
Albert Noble
Alrick Anderson
Andre Lewis
Andrew Minto
Aldane Stennett
Alshane Bent
Andre Luke
Andrew Robinson
Aldington-Dean Smith
Alston Watson
Andre Modest
Andrew Stennett
Alecia Forbes
Althea Simpson
Andre Rose
Andrew Taylor
Alecia Francis
Althea Thorpe
Andre’ Smith
Andrewnett Henzil
Aleith Wynter
Althea White
Andre Watson
Anecia Humphrey
Alejo Lee
Alton Derby
Andrea Bernard-Chambers
Angela Jordon
Alesa Jolly
Alverine Osbourne
Andrea Collins-Robinson
Angela Phillips
Alexander Gibson
Alvern Evans
Andrea Fletcher
Angela Shaw
Alexander Pryce
Alvern Mott
Andrea Howell
Angelean Daley
JPS • ANNUAL REPORT 2011
Your JPS team
107
JPS • ANNUAL REPORT 2011
108
Angella Walker
Athol Johnson
Bentley Haughton
Candice Bryan
Ann Bennett
Audley Alcott
Beresford Whitter
Canute Ashmead
Ann Scott
Audley Gayle
Bernard Boothe
Caphanne March
Annette Bailey
Audley Richards
Beverley Campbell
Carl Bicarie
Annie-Kay Davey
Audrey Sewell
Bevin Gibbs
Carl Goodwin
Annif Jones
Audrey Williams
Bilrol Gardner
Carl Kirkwood
Ann-Maria Bennett
Audria Bernard-Robinson
Blaine Jarrett
Carla Cowan
Annmarie Myrie-Chambers
Austin Briscoe
Blondette Wright
Carlene Rowe
Ann-Marie Woodham
Austin Campbell
Blonnie Johnson
Carlinton Brown
Annorea Williams
Austin Wallace
Bradley Smith
Carlton Anderson
Anthony Benjamin
Ava English
Brandon Lobban
Carlton Brown
Anthony Creary
Avadean McKenzie
Bret Bennett
Carlton Campbell
Anthony Curtis
Ava-Gail Russell
Brian Carter
Carlton Francis
Anthony Lowe
Ayon Allen
Brian Dixon
Carlton Francis
Anthony Majurie
Azalee Lawson
Brian Hayden
Carlton Gordon
Anthony Rochester
Barbara Harrison
Brian Jones
Carlton McKenzie
Anthony Scott
Barbara Johnson
Brian Walters
Carlton Pryce
Anthony Williams
Barndolph Bailey
Bruce Barrett
Carlton Rattigan
Antoinette Lopez-Hall
Baron Anderson
Bruce Dennis
Carlton Serju
Antonette Green-Matthews
Baron Higgins
Bryan Johnson
Carlyle Appleton
Antonette McKoy
Barrington Brown
Bryan Sterling
Carmelita Forrest
Antoney Riley
Barrington Flowers
Bryn Ricketts
Carmichael Dixon
Arayne Daley
Barrington Hall
Burt Henry
Carol Blair
Arethea Fraser
Barrington Preston
Byfield Pryce
Carol Stanford
Arlene Bromfield
Barrington Thompson
Byron Colquhoun
Caroline Elliott
Arlene Laidlaw
Barrington Williams
Calder Dawkins
Carolyn Clifford
Arthur Barrows
Bartwrick Thompson
Calvin Poorman
Carolyn Parchment
Ashford Williams
Basil Daley
Cameal Daley
Carolyn Young
Aston Murray
Basil Fairclough
Cameron Lamoth
Carone Johnson
Aston Shaw
Basil Smalling
Camille Foreman
Cartez Miller
Aston Smith
Beniah Lester
Camille Martin
Carvalo Duffus
Christopher Jacobs
Clover Green-Gordon
Dagria Brown
Cecil Brown
Christopher Johnson
Clyde Clarke
Dale Cole
Cecil Henry
Christopher King
Clyde Clarke
Dalmar Campbell
Cecil Mills
Christopher Levy
Colbert Tucker
Dalton Adams
Cecil Murray
Christopher Simpson
Colin Binnie
Dalton Campbell
Cecile Campbell
Christopher Thompson
Colin Michelin
Dalton Maragh
Cedric Morris
Christopher Tomlinson
Colin Walters
Dalton Tomlinson
Chaisson Beckford
Christopher Vaughn
Collette Forbes
Damian Chin
Chamille Bradbury
Christopher West
Collin King
Damian Kidd
Chane Donaldson
Clanson Henry
Conrad Richardson
Damien Sawyers
Charles Bogle
Clarence Burrell
Conroy Capper
Damion Anderson
Charles Hendricks
Claudeth Campbell
Constantine Brown
Damion Morrison
Charley Parchment
Claudette Brissett
Constantine Walker
Damion Smith
Charlton Ricketts
Claudette Dixon
Corey Senior
Damion Whyte
Charmaine Campbell
Claudia Davis
Corine McCalla
Damion Williams
Charmaine Shaw
Clava Mantock
Cornel Thompson
Dan Theoc
Chavon Barron
Clava Mantock
Courtland Facey
Dana Harris
Chazwray Clayton
Clayson Hutchinson
Courtney Blair
Danaya Tracey
Cherie Lue-Wright
Cleint Johnson
Courtney Brown
Dane Campbell
Cheryl Davis
Clelon Dixon
Courtney Jarrett
Dane Clarke
Chizel Brown
Clement Smith
Courtney McLean
Daneon Dillion
Christina Kavanagh
Cleveland Mills
Courtney Turnbull
Daneyan Hosef
Christine Dwyer
Cleveland Windross
Courtney Whyte
Daniel Lobar
Christine Morgan-Gallimore
Clifford Powell
Craig Bryan
Daniel Newby
Christopher Brown
Clifton Williams
Craig Duncan
Daniel Tomlinson
Christopher Bryan
Cliton Henry
Craig Francis
Danielle Lindsay
Christopher Carter
Clive Gardner
Craig Sales
Danville Henry
Christopher Coke
Clive Hopkins
Crechelle-Ann Walker
Daphne Stephens
Christopher Collins
Clive Samuels
Curtis Fraser
Daphne Wilkie-Hamilton
Christopher DaCosta
Clive Wright
Cynthia Dunbar
Darian Richards
Christopher Hayden
Clova Oliver
Daffodil Bruce-Miller
Daron Burgher
JPS • ANNUAL REPORT 2011
Casbert Henry
109
JPS • ANNUAL REPORT 2011
110
Dave Cole
Delando Powell
Derrick Grubb
Diane Stephens
Dave Garwood
Deleon Boyden
Derrick Honeyghan
Dionne Nugent
Dave Green
Delmar Eccles
Derrick McFarlane
Dominic Williams
Dave McKoy
Delmonte Dewar
Dervin Hanlan
Donald Bahadur
Dave Tyndale
Delores Cunningham
Desmond Austin
Donald Baker
Dave Williams
Delroy Bailey
Desmond Baugh
Donald Hennie
Dave Wright
Delroy Dunwell
Desmond Fagan
Donald Lecky
Daveion Crichton
Delroy Griffiths
Desmond Harris
Donald Robertson
David Archer
Delroy Marshall
Desmond Jones
Donald Robinson
David Clarke
Delroy Reid
Desmond Williamson
Donald Scott
David Cook
Delroy Spaulding
Desreen Ragoo
Donald Williams
David Ffrench
Delroy Waugh
Desrene Maxwell
Donavan Wint
David Fleming
Demar Tracey
Detommie Sergeant
Donna Barrett
David Hall
Denique Ferguson
Deverton Miller
Donna Brooks-Stewart
David Haynes
Denise Hanson
Devon Brown
Donna Hutchinson
David Kerr
Denise Harrison-Sterling
Devon Dawson
Donna Johnson
David Lewis
Denise Kong
Devon Grant
Donna Thompson
David Martin
Denise Warren
Devon Grant
Donnette Lee
David McKenzie
Dennis Davis
Devon Hendricks
Donnovan Williamson
David Salmon
Dennis Edwards
Devon Hylton
Donovan Brown
David Stennett
Dennis Murray
Devon Nelson
Donovan Carson
David Wilson
Dennis Rainford
Devon Wilkie
Donovan Cunningham
David Wong
Denniston Williams
Devon Willis
Donovan Ebanks
Dawn Graham
Deno Hemmings
Devon Wright
Donovan Kelly
De Manning
Denton Alman
De-Wayne Nelson
Donovan Lewis
Dean Campbell
Denton Broderick
Dexter Bassier
Donovan Moore
Dean Small
Denton Williams
Dezlyn Mattis
Donovan Parkes
Dean Smith
Denton Williams
Dian Daniels
Donovan Ramsay
Debbie-Ann Graham
Deon Aarons
Diana Byfield
Donovan Robinson
Debronette Dixon
Deon Daley
Diana Hall
Donville Charlton
Deidre Wedderburn
Derrick Davis
Dianah Harris
Doreen Samuels
Egerton Bennett
Everton McKenzie
Garfield McPherson
Dorothy Lee
Eggeton Powell
Everton Young
Garfield Muir
Dossie Smallhorne
Eglan Richards
Ewen Flemming
Garfield Murray
Duane Channer
Elaine Grindley
Fabian Gentles
Garfield Simpson
Duane Smith
Eli Baker
Fabian Lyew
Garfield Spalding
Durvan Morris
Elisabeth Nedrick
Faith Gordon
Garfield Thompson
Dwayne Bailey
Elton Watson
Fernando Bernard
Garnet Foster
Dwayne Cohen
Elvis Nesbeth
Ferris Stewart
Garnet Reid
Dwayne Dyer
Enos Reid
Fiona Johnson
Garnett Jones
Dwayne Edwards
Epson Patterson
Fiona Phillips
Garrett Needham
Dwayne Fowler
Eric Coore
Fitz Cameron
Garth McKenzie
Dwayne Hamilton
Eric Grey
Fitz Valentine
Garth Tabana
Dwayne Henry
Eric Powell
Fitzroy McDonald
Gary Hutchinson
Dwayne Muschette
Eric Roberts
Fitzroy Turner
Gary Lewis
Dwayne Peart
Eric Williams
Floyd Grant
Gene Edwards
Dwayne Smith
Errington Case
Floyd James
George Brown
Dwhyte Hinds
Errol Cameron
Floyd Minott
George Francis
Dwight Brown
Errol Dias
Floyd Russell
George Headley
Dwight DaCosta
Errol Francis
Floyd Smith
George Kates
Dwight Laing
Errol McDonald
Frank Ray
George Morris
Dwight Richards
Errol McKenzie
Franklin Coach
George Pounall
Dwight Sutherland
Errol Stewart
Franklyn Dunkley
George Smith
Ean Walcott
Eulin Wright
Frederika Charles
Georgette Bryce
Earl Kelly
Evan Gordon
Fredrick Malcolm
Georgia Thompson
Earl Vassell
Evans Taylor
Gail Witter-Anderson
Geraint Parchment
Earle Barnett
Ever Reid
Gareth Bernard
Gerald McKoy
Easton Baugh
Everod Doman
Gareth Brown
Gernos Gibbs
Eda Gonzales
Everol Smith
Gareth Williams
Gibran McBean
Edgerton Gayle
Everton Davis
Garfield Barrett
Gilbert Hewitt
Edward Miller
Everton Dilworth
Garfield Dockery
Gina Tomlinson
Edward Wallace
Everton Gaynor
Garfield Edwards
Gladstone Hinds
JPS • ANNUAL REPORT 2011
Dori-Ann Marston
111
JPS • ANNUAL REPORT 2011
112
Glenford Boothe
Haroon Robinson
Hubert Thomas
James Duff
Glenford Gilpin
Harvel Lewis
Huey Paulwell
James Hudson
Glenford Harrison
Havor Murray
Hugh Bodley
Jamiel McLean
Glenmore Nelson
Hayilu Manassi
Hugh Garvey
Janelle Case
Glenroy Douglas
Headley Lawson
Hugh Hamilton
Janet Austin
Glenroy Leslie
Heather Lawrence
Hugh Henry
Janet Cole
Glenroy Llewellyn
Heather Morrison
Hugh Williams
Janice Carr
Glenton Barrett
Heather Rowe
Hugo Thomas
Janice Dunn
Gloreen Brown
Herbert Edwards
Humphrey Desouza
Janice Griffiths
Godffery Wright
Herbert Young
Humphrey Walker
Jannel James-Brown
Godfrey Case
Herline Thompson
Hyacinth Knight
Jannelle Berry
Godfrey Higgins
Heron McKenzie
Hyacinth Mullings
Jasmin Wright
Goffe Brown
Herve Perrin
Ian Barnett
Jason Dawson
Goyfield Harrison
Hixbert Reid
Ian Hibbert
Jason Greaves
Grace Buchanan
Hopeton Anglin
Ian Hunter
Jason Henry
Grace Davis
Hopeton Daley
Ian Melbourne
Jason McDonald
Grace-Ann Watson-Dennis
Hopeton Miller
Ian Reid
Jason Solomon
Greg Grant
Horace Messado
Ian Williams
Jathniel Randall
Gregory Grant
Horace Tulloch
Inan Foster
Jay McCoskey
Gregory Grey
Hortense Hall
Ishmael Davis
Jean Waugh-Evans
Gregory Harris
Hortnel Johnson
Ishmael Hammond
Jeffrey Reid
Gregory James
Howard Boland
Isiah Thomas
Jellandre Smith
Grifton Hanson
Howard Dinald
Ivor Chin
Jenese Louden
Gulshad Chan
Howard Forbes
Iyishla Campbell
Jenifer Williams
Guy Jones
Howard Kerr
Jacinth Shaw
Jennifer Clarke
Haley Clarke-Scotland
Howard Meikle
Jacklyn Spalding
Jennifer Cunningham
Hamlet Myrie
Howard Murray
Jacqueline Ferguson
Jennifer Foster
Hamlet Palmer
Howard Stone
Jacqueline Hew
Jermain Pusey
Hannah Thomas
Howard Whitely
Jacqueline Marriott
Jermaine Clarke
Harold McFarlane
HuAndre Barrett
Jacqueline Melbourne
Jermaine Douglas
Harold Richards
Hubert Smikle
Jacqueline Simmonds
Jermaine Parker
Julie-Ann Grant
Katherine Francis
Kenroy Watkis
Jerome Henry
Jullite Reeves
Kathleen Cooke
Kenston Tomlinson
Jessie Morales
Jumaane Reid
Kaufman Miller
Kenyatta Campbell
Jevaughn Buchanan
Junior Cespedes
Kaven Johnson
Kerese Foster
Jevone Hunter
Junior Mitchell
Kaydia Salmon
Kerrian Francis
Jheanell Guy
Junior Sharpe
Kayton Myers
Kerri-Ann Fenton-Davis
Joadey Ashlie
Jurmain Morgan
Kaywanna Gray-Dixon
Kerrica McGregor
Joan Mars
Jvunalle Scully
Keaton Luckoo
Kerron Baker
Jobian Parkes
Kadean Myers
Keisha Campbell
Kerry-Ann Gauntlett
Jodi Simmonds
Kadechah Henry
Keisha Hutchinson
Kerry-Ann Myrie
Jodian Jolly
Kadian Boyden
Keith Simpson
Kesen Drydgen
John Blake
Kadian McNeil-Ellis
Keith Vassell
Ketsea Hepburn
John Coley
Kamar Ambursely-Crawford
Keith Whyte
Kevin Brown
John Isaacs
Kareem Haynes
Keldon Cain
Kevin Bryan
John Neilson
Kareen Jackson
Kemar Lewis
Kevin Edwards
John Smallhorn
Kareisha Preston
Kemar Myrie
Kevin Hooper
Johnathan Schloss
Karen Brown
Kemar Thomas
Kevin Larmond
Joiles Burey
Karen Francis
Kemark Slue
Kevin Lawrence
Joseph Beckford
Karen Harris
Kemoy Fagan
Kevin Mair
Joseph Burrell
Karen Johnson
Kemoy Rowe
Kevin Ramsay
Joseph Ferguson
Karen Jones
Kemron Green
Kevin Scully
Joseph Lee
Karl Cowan
Kenardo Saunders
Kevin Smith
Joseph Rodney
Karl Grant
Kendis Nangle
Kevon Edwards
Joseph Thompson
Karl Rattray
Kenisha Raymond
Khadian Rose
Joseph Williams
Karlease Brown
Kennedy Reid
Khadian Scott
Josiah Hamilton
Karlene Haye-Williams
Kenneth Batchelor
Kharlid Moulton
Joyce Bailey
Karlene Llewellyn
Kenneth Douglas
Kieron Noble
Joylett Walker-Clocken
Karlene Sutherland-Butler
Kenneth Hayles
Kim Robinson
Judy Crossley
Karlyle Brown
Kenny Wilkinson
Kimberley Spencer
Julian Francis
Karole Davis
Kenrick Fuller
Kim-Dave Willie
Julian Marshall
Kassandra Harty
Kenroy Gordon
Kimi Dawkins
JPS • ANNUAL REPORT 2011
Jermaine Williams
113
JPS • ANNUAL REPORT 2011
114
Kingsley Bell
Leigh Dwyer
Lionel Wallace
Marcia Ennis
Kingsley Ho-Shing
Leighton Barnes
Lisa Forest
Marilyn McDonald-Watson
Kirk Downie
Leighton Salmon
Lisa-Ann Riley
Mario Archer
Kirk Gilpin
Leighton Walker
Liveen Harris
Mario Ashman
Kirk Gordon
Leisa Batiste-Whyte
Livingston Marshall
Mario Haye
Kirk Roberts
Lemar Gray
Lloyd Blackwood
Marion Garwood
Kirk Stewart
Lenbern Hopkins
Lloyd Brown
Marjorie Plunkitt
Kirk Walton
Lenford Walker
Lloyd Campbell
Mark Brown
Kirkon Welsh
Lennon Hutchinson
Lloyd Francis
Mark Campbell
Kirsten Pedersen
Lennox Lindsay
Lloyd Haye
Mark Chambers
Kirth Lewis
Lenworth Byfield
Lloyd Lugg
Mark Chin
Kishmoan Grant
Lenworth Julal
Lloyd McDonald
Mark Haslam
Kosgin Richards
Leon Anderson
Lloyd Phillips
Mark Hylton
Kurt Ross
Leon Foster
Lloyd Ricketts
Mark Knight
Lakeisha Broomfield
Leon Martin
Locksley Buckley
Mark Legister
Lakrisa Callam
Leon McLean
Lois Neufville
Mark Ramsay
Lance Meghoo
Leonard Anderson
Lorianne Hinds
Mark Wedderburn
Lance Morgan
Leonard Griffiths
Lorraine Phillips
Mark Wellington
Lancelot Graham
Leopold Higgins
Lorrise Higgins
Markland Brown
Lannette Spence
Lerone McDonald
Lovel King
Marko Lee
Larie Hamilton
Leroy Fisher
Ludlow Thompson
Marlene Grant
Lascelles Ruddock
Leroy Malcolm
Luke Brown
Marlene Madden
Latoya Samuels
Leroy Wilson
Lynden Forbes
Marlene Prince
Latoya Wynter
Lesgar McGrath
Lynval Robb
Marlon Allen
Latoya Young
Lesley Facey
Machel Pryce
Marlon Burton
Laurence Brown
Leslie Ennis
Maralie Hall
Marlon James
Lauri-Ann Gayle
Lester McKenzie
Marceline Hodges
Marlon McIntosh
Lawrence O’Meally
Le-Var Allen
Marcello Clarke
Marlon McKenzie
Leantonnette Gordon
Lincoln Bailey
Marcia Braham
Marlon Wilkinson
Lebert Frankson
Lincoy Small
Marcia Brown-Elliott
Marlon Williamson
Lebert Heywood
Linval Griffiths
Marcia Currie
Marsha Brown-White
Michael Dyer
Moneleto Jones
Nerine Brown
Martin Lawson
Michael Edwards
Moni Smith
Nerrisa Rhoden-Roberts
Marvin Campbell
Michael Evans
Monifa Raglan
Neville Brown
Marvin Crooks
Michael Finch
Monique Dennis
Neville Davis
Marvin Fearon
Michael Ford
Morris Johnson
Neville Nelson
Marvin Watson
Michael Forsythe
Moses Williams
Neville Richards
Maston Todd
Michael Fraser
Muniair Cole
Newman Malcolm
Mateos Clarke
Michael Henlin
Myrna Simmonds
Newton Young
Maureen Mason-Francis
Michael Henry
Nackio Fuller
Nicholas Coley
Maurice Bennett
Michael Johnston
Nadia Bernard
Nicholas Miller
Maurice Campbell
Michael Lindsay
Nadia Clarke
Nicholas Morgan
Maurice Esty
Michael McPherson
Nadia Hibbert
Nicholas Nembhard
Maurice Palmer
Michael Patterson
Nadine Wilson
Nicholas Stewart
Maurice Thompson
Michael Pitter
Nadrae Waugh
Nickel Lee
Maxine Lewis
Michael Samuels
Nahesha Patterson
Nickesha James
Maxine Phillips
Michael Smith
Nahjair Deslandes
Nicola Robinson
Melanie Morgan
Michael Thompson
Narda Stampp
Nicola Sterling-Palmer
Melinda Lloyd
Michael Whittick
Nasson Bernard
Nicole Brown
Melisha Valentine
Michelle Dunn
Nastasia Morgan
Nicole Goodin
Mellissa Grant
Michelle Morris
Natalie Purrier
Nicole Nathan
Melodene Henlon
Michelle Richards
Natallie McKenzie
Nicole Strachan
Melville Mullings
Mickey Whyte
Natania Williams
Nigel Griffiths
Merdilyn Allen
Miguel Curtis
Natasha Silvera
Nigel McConnell
Mervin Hylton
Miguel Goulbourne
Natesha McKay
Nigel McGrath
Mesa Carricarte
Millicent Ellis
Nathan Rose
Nigel Scott
Michael Aaron
Millicent Graham
Nathan Whyte
Noel Bailey
Michael Bramwell
Millicent McNeil
Natoya Mighty-Smith
Noel Madden
Michael Bryan
Milton Abrahams
Neckell Ormsby
Noel Thomas
Michael Chambers
Milton Oliver
Neil Downer
Noel Tyndale
Michael DaCosta
Mirett Briscoe-Williams
Nembhard Neil
Noel Watson
Michael Davis
Mitzie Cummings
Nerie Campbell-Ward
Noel White
JPS • ANNUAL REPORT 2011
Marshal Simpson
115
JPS • ANNUAL REPORT 2011
116
Norbert Stewart
Omar Grey
Orrett Batchelor
Patrick Brissett
Nordel Stewart
Omar Harris
Orvil Holness
Patrick Cole
Noris Haye
Omar Harrison
Orville Black
Patrick Davidson
Norman Edwards
Omar Palmer
Orville Clarke
Patrick Dunn
Norman Hird
Omar Sang
Orville Clough
Patrick Gilman
Norman Mason
Omar Scott
Orville Dixon
Patrick Gordon
Norman Reid
Omar Simpson
Orville Morrison
Patrick Griffiths
Norman Simpson
Omar Stewart
Orville Peterkin
Patrick Henry
Norman Titus
Omar Thomas
Osawaki Wickham
Patrick Mais
Norman Whyte
Oneil Archer
Oscar Johnson
Patrick Melvin
Norris Redwood
O’Neil Brown
O’Shea Gordon
Patrick Morgan
Norval Bullock
O’Neil Gordon
Oswald Dixon
Patrick Muirhead
Nova Mais
O’Neil Harris
Oswald Smiley
Patrick Prince
Novelette Thelwell
Oneil Lewis
Otis Henry
Patrick Thomas
Nyron Foster
O’Neil Nunes
Otis Wallen
Patrick Thompson
O’Brian Ellis
O’Neil Prendergast
Otony Williams
Patrick Williams
Odale James
O’Neil Robinson
Owen Bonfield
Patrick Wright
O’Dave Tucker
Onica Yong
Owen Robinson
Paul Brissett
Odeany Brown
O’Niel Davis
Owen Tugman
Paul Madden
Odel Wright
Ophelia Moncrieffe
Pamelia Phillips
Paul McPherson
O’Dell Davis
Oral Barnett
Pamella Wright
Paul Miller
Odette Ingram
Oral Brown
Pansy Whyte-Walker
Paul Morrison
Odette Lewis
Orane Sudeene
Patrice Banks
Paul Nunes
Olivenie Fritz-Bunting
Orden Powell
Patrice Hamilton
Paul Palmer
Oliver Jackson
Ordett Hudson-Connell
Patricia Beckford-Linton
Paul Roper
Oliver Johnson
Orel Browning
Patricia Garnett
Paula Vernon
Oliver Youngsam
Orett Stanley
Patricia Gayle
Paula Williams
Olivia Miller
Orlando Blake
Patricia Newland
Paul-Anthony Castro
Olysia Cato
Orlando Garrick
Patricia Walker
Paulette Brown
Omar Brown
Orlando McKoy
Patricia Young
Paulette Collins
Omar Eubanks
Orlene Robinson
Patrick Beckford
Paulette Evans
Quinn Shortridge
Renee Anthony
Richard Spence
Pauline Ferguson
Racquel Wilson
Renee Watson
Richard Watson
Paulstan Francis
Radcliffe Brown
Renwick Brown
Rimona Rowe
Peaches Wray
Ralston Dickenson
Reval Scott
Robert Cameron
Percival Brown
Ralston McPherson
Rhoneil Williams
Robert Manning
Percival Wright
Ralston Stewart
Rhyon Marson
Robert Miller
Pernilla Green
Ramon Williams
Rhys Stewart
Robert Nicely
Pete Drummond
Ramsay McDonald
Ricardo Bedward
Robert Ramsoran
Peter Angus
Randolph Scott
Ricardo Blidgen
Robert Rodney
Peter Baker
Randy Brown
Ricardo Brown
Robert Taylor
Peter Brown
Ransford Gordon
Ricardo Brown
Robert Thomas
Peter Creary
Raoul Alder
Ricardo Campbell
Roberta Johnson
Peter Daley
Raquel Jones
Ricardo Case
Roberto Edwards
Peter Guthrie
Rasheed Easy
Ricardo Heron
Rochester Robinson
Peter Marshall
Rashema Jackson
Ricardo Hunter
Roderick Keating
Peter Smith
Rashida Leiba
Ricardo Kirkland
Rodney Dobson
Petra Bassaragh
Ravae Small
Ricardo Pennycooke
Roger Brown
Philbert Duhaney
Ray Sinclair
Ricardo Rennalls
Roger Kennedy
Philemon Williams
Raymond Garwood
Ricardo Williams
Rohan Lewis
Phillip Hamilton
Raymond Logan
Richard Ellis
Rohan Lindsay
Phillip Harris
Raymond McDonald
Richard Ferguson
Rohan Malcolm
Phillip Housen
Raymond McFarlane
Richard Fletcher
Rohan Mayne
Phillip Whittingham
Raymond Pennant
Richard Gordon
Rohan Rampasard
Phillipa Whyte
Raymond Ramsay
Richard Grant
Rohan Simms
Philson Pryce
Rayon Jarrett
Richard Henry
Rohan Simpson
Plunket Brown
Rayon Shelley
Richard Johnson
Rohan Williams
Polly Vernon
Rayon Small
Richard Lawson
Roland McKnight
Pricella Dawson
Recordo Green
Richard Lyttle
Romain Wint
Primrose Wright
Reldean Harris
Richard Peart
Romar Taylor
Prince Rodgers
Renaldo Chambers
Richard Reid
Ronald Sunanon
Prudence Higgin-Thompson
Renardo Lobban
Richard Smith
Ronald Turner
JPS • ANNUAL REPORT 2011
Paulette Radway
117
JPS • ANNUAL REPORT 2011
118
Roneil Bunsie
Ryan Lattery
Shane Brown
Shelly-Ann Barker-Lawrence
Ronnett Malcolm
Ryan McPherson
Shane Montaque
Shelton Thomas
Rose Farquharson
Ryan Powell
Shane Smith
Sheniel Campbell
Rosemerrie Morgan
Sabrena Shaw
Shane Watson
Sheree Bryan
Roumell Roper
Sabrina Morant
Shaneika Lee
Shereen Hitchins
Rowan Gibbore
Samantha Darby
Shaneka Coley
Sherica Miller
Rowan Onfroy
Samuel Davis
Shanette Martin
Sherika Frater
Rowan Small
Samuel Willie
Shanique Donaldson
Sheril Hall
Roxana Masters
Sandino Crooks
Shanique Spencer
Shernane Spence
Roxanne Fletcher
Sandra Hayles
Shannika Jackson
Sherrice Lyons
Roxanne Johnson
Sandra Nembhard
Shannon Benjamin
Sherry-Ann Henry
Roy Brown
Sandra Vidal
Shannon Holgate
Sheryl Henry
Roy Brown
Sangeet Dutta
Shannon-Kay Wray
Sheryl Howell-Hylton
Roy Cunningham
Sania Lewis
Sharee James
Sheryl Wright
Roy Milford
Sarah Hoffstead
Sharisse Robinson
Sheryll Brown
Roy Taylor
Sarah Nankoo
Sharlene Chunnu
Shevon Whilby
Royan Maxwell
Sarah Randall
Sharon Harvey
Shirley Kerr
Royed Pryce
Sasha Campbell
Sharon Ledford
Shirley Rochester-Francis
Ruben Thomas
Sasha-Gaye Fraser
Sharon Pryce
Shoneika Dalling
Rudolph Clarke
Saskia Lemard
Shasan Robinson
Shorn Bonfield
Rudolph Forsythe
Sean Crooks
Shaun Witter
Shoshanna Hanniford
Rudolph Reynolds
Sean Stanford
Shauna Elliott
Shoucair Sawyers
Rudolph Stevens
Sean Tucker
Shauna-Lee Rennocks
Shrudon Johnson
Rudolph Wright
Selvin Spencer
Shavalo Porter
Sideney Bonner
Rudyard O’Connor
Selvin White
Shavon Thompson
Sidoney Vassell
Ruel Barnett
Seon Jackson
Sheffoy Francis
Silburn Chambers
Ruel Scott
Seon Sadler
Sheldon Bahadosingh
Silina Patterson
Rupert Williams
Seymour Richards
Sheldon Grandison
Simbarashe Nkrumah
Rupert Wilson
Shackoya McIntosh
Sheldon Thompson
Simon Jackson
Ruthlyn Johnson
Shallon Falcknor
Sheldon Williams
Simone Austin
Ryan Ellison
Shamari Laws
Shelley-Marie Robinson
Simone Bicarie
Steve Windross
Tesfaye O’Sullivan
Tyrone Gordon
Simoneese Williams
Steve Wright
Tex Knight
Tyrone Morris
Simonie Barrett
Steven Davis
Theo Cargill
Una Bailey
Sokoni Forsythe
Stevon Lewis
Thessa Smith
Uriah Stephenson
Soleta Thomas
Stuart Haughton
Thomas Gordon
Uton Tobin
Solomon Johnson
Sudaney Blair
Timol Houchen
Vaden Williams
Sonia Francis
Suzanne Campbell-Rose
Timothy Taylor
Vahance McGregor
Sonia Johnson
Suzette Scott
Tina McKain-Burford
Valen Wilson
Sonia Jones
Suzette Williams
Tisona Johnson
Valentine Brown
Sonia Lewis
Sydney McFarlane
Toni-Ann Brooks
Valentine Fagan
Sophia Anderson-Wilkie
Sydney Williams
Toni-Ann Neita
Valentine Scott
Sophia Davidson
Sylvia Brown
Toyloy Nugent
Valerie Bennett
Sophia Griffiths-Dunn
Sytron Baker
Traci-Ann Lewis
Valerie Dawson
Sophia Hamm
Tajeane Roseway
Tracy-Ann Robinson
Valerie Mahoney
Sophia Lambert
Tameka Wyzard
Traverse Foster
Valerie Smith
Sophia Nash
Taneece Treasure
Travis Hall
Vaughan-Reese Jones
Stacey Passley
Taniesha Kelly
Tremaine Morgan
Vaughn McDonald
Stacey Samuels
Tanneca Robinson
Treneace Goulbourne
Venice Henry-Blackburn
Stacey Whyte
Tanya Brown
Trevon Lawrence
Venice Larmond-Reid
Stacey-Ann Hepburn
Tanya McDonald
Trevor McDonald
Venton Bucknor
Stacie-Ann Earle
Tanya Williams
Trevor Parker
Vercel Benjamin
Stacy Codner
Tarik Osbourne
Tricia Dorman
Verene Mason-Wilks
Stanley Nettleford
Tashanna Reid
Tricia Hay
Veronica McCurdy
Stanley Reid
Tasheima McNabb
Tricia Robinson
Veronica Williams
Stelbert Wizzard
Tashie Lee
Trisha Lee
Veront Howell
Stella Eubanks-Richards
Tatrecia Mitchell
Trishana Dunbar
Vilma Palmer
Stephen Forrest
Taunderia Williams
Trisram Williams
Vincent Bryan
Stevan Sterling
Teisha McCatty
Troy Allen
Vincent Cunningham
Steve Dixon
Tennyson Arnold
Troy Hamilton
Vincent Davis
Steve Grant
Terrence Miller
Troy Thompson
Vincent Goodlett
Steve Roberts
Terry Taylor
Troy Tucker
Vincent Kameka
JPS • ANNUAL REPORT 2011
Simone Smythe-Myles
119
JPS • ANNUAL REPORT 2011
Vincent Nelson
Wayne Jackson
William Reid
Winston Spencer
Vinette Allen
Wayne Jones
William Smart
Winston Townsend
Vinnetta Groucher
Wayne McKenzie
William Stewart
Winston Whyte
Vinton Thorpe
Wayne Miller
William Vickers
Wray Lawrence
Vivia Lysaith-Cunningham
Wayne Taylor
Wilton McTyson
Xavier Bryan
Vivienne Green
Welton Burthwright
Winsett Thomas
Xavier Wilks
Volton Campbell
Welton Codner
Winsome Callum
Yacob Cookhorn
Vonnessa Boothe
Wendion Wright
Winsome Lord-Sadhi
Yanique Green
Walter Blackwood
Wendy McNeil
Winsome Maxwell
Yenoh Wheatle
Walwain Binns
Wendyl Lewis
Winston Allen
Yvonne Riley
Warren Atkinson
Wesley Simpson
Winston Anderson
Yvonne Smith
Warren Beans
Wilbert Cain
Winston Bansie
Zonya Smith
Warren Bennett
Wilcon Major
Winston Brown
Warren Wray
Wilfred McKenley
Winston Ferguson
Wayne Blackburn
Wilfred Talbot
Winston Francis
Wayne Chambers
Will Gabbidon
Winston Reynolds
As at December 31st 2011
120
Ten Largest Shareholders Listing As At 2012 June 30. JPS Preference B Shares (7%)
Rank
1
2
3
4
5
6
7
8
9
10
Name of Shareholder
Philip Harvey-Lewis
Security Brokers Limited
MF&G Trust and Finance Ltd-A/C 57
Everard Smith
Jamaica Mutual Life Assurance Company
Crown Life Insurance Company
John Headock
National Utility Fund
Kimberly Burrowes
Estate George H Scott
No. of Units
130666
81005
41300
35845
16567
10000
7410
5600
5597
5000
JPS Preference C Shares (5%)
Rank
1
2
3
4
5
6
7
8
9
10
Name of Shareholder
Security Brokers Limited
Philip Harvey-Lewis
Renata Headcock
Everard Smith
Jamaica Mutual Life Assurance Company
Herma Sassoon (Deceased)
MF&G Trust & Finance Ltd- A/C 57
Uraine Ferro
Prudential Stockbrokers Ltd
Buck Security Brokers Ltd
No. of Units
6917
6728
4460
3921
3610
1900
1835
1800
1628
1566
JPS Preference D Shares (5%)
Rank
1
2
3
4
5
6
7
8
9
10
Name of Shareholder
Philip Harvey-Lewis
MF&G Finance Ltd- A/C 57
Everard Smith
Security Brokers Ltd
Jamaica Mutual Life Assurance Society
Incorporated Lay Body Of The Church in Ja.
Crown Life Insurance Company Ltd
Prudential Stock Brokers Ltd
Ronald W. Kuper
Jamaica Mutual Life Association Society S/A Fund
No. of Units
82817
71921
68178
64470
52795
36620
20000
18185
13600
9605
2
Rank
1
2
3
4
5
6
7
8
9
10
JPS Preference E Shares (6%)
Name of Shareholder
Everard Smith
MF&G Trust & Finance Ltd- A/C 57
Susan Headcock
Security Brokers Ltd
Jamaica Mutual Life Association Staff S/A Fund
Field Nominees Limited
Jamaica Mutual Life Assurance Society
Estate Charles O. Edwards (Deceased)
Imperial Optical Company (WI) Ltd
Berkeley Properties Ltd
No. of Units
76706
36660
30000
30000
11060
10000
8250
5000
5000
3613
JPS Ordinary Stocks
Rank
1
2
3
4
5
6
7
8
9
10
Name of Shareholder
EWP (Barbados) 1 SRL
Maruenergy JPSCO 1, SRL
National Investment Bank of Jamaica Ltd
R.S Gamble and Son Ltd
Faith A. Myers
Melle Marguerite Simard (Deceased)
Frank Renfrette
John George
Agnes Theresa Fong Yee
Renee Rosier Joel
Rank
1
2
3
4
Name of Shareholder
EWP (Barbados) 1 SRL
Maruenergy JPSCO 1, SRL
Accountant General
Accountant General
No. of Units
155366792
155366792
2183237
108139
74394
59514
45462
43396
31410
29757
JPS Ordinary Shares
No. of Units
8575911306
8575911306
2386573897
1974065546
3
CORPORATE GOVERNANCE
For the Jamaica Public Service Company Limited (JPS), compliance is a basic premise of our business and the foundation
upon which JPS has built and continues to grow a truly first class corporate brand. JPS has an established corporate
governance principles which guide management decisions as well as a core system of processes and procedures by which
all employee decisions and actions must be carried out. The Board has responsibility along with the Executive
Management Team for day to day operations, with material issues going before the Board for consideration and decision.
Management is responsible for the execution of the agreed strategy and for all operational matters.
THE BOARD
Composition of the Board
•
•
The Board comprises nine (9) directors represented as follows:
o Three (3) directors represent MaruEnergy JPSCO 1, Srl
o Three (3) directors represent EWP (Barbados) 1 Srl
o Three (3) directors represent the Government of Jamaica
The only compensation members of the Board of Directors receive is a sum equivalent to US$1,000 for
attendance at each Board or Committee meeting, and any other meeting requiring a director’s attendance.
Current Directors
Hisatsugu Hirai (Chairman appointed effective April 1,
2011)
Seiji Kawamura
Sang Kie Cho
Cathrine Kennedy (Independent Director)
Prof. Evan Duggan
Prof. Gordon Shirley
Charles Johnston (Independent Director)
Yung Joon Pyo
Fitzroy Vidal
Masao Imazato ( Alternate Director)
Nomination of Directors
The Board is satisfied that the current slate of directors have the appropriate skills, experience and capabilities to meet the
challenges faced by the Company as the Board is comprised of a diverse membership with expertise in finance, accounting
and audit procedures and relevant industry experience. In selecting members of the Board, consideration of the Private
Sector Organization of Jamaica (PSOJ) Guidelines for director selection are taken into account. Each year at the Annual
General Meeting, the Board recommends and the shareholders elect the retiring directors in accordance with Article 123 of
the Company’s Articles of Incorporation as well as the Shareholders’ Agreement between the prime shareholders.
Conflicts of Interest
In adherence to the Company’s Articles of Incorporation and various statutory requirements on the disclosure of
Directors’ interest, members of the Board who have interest in proposals being considered by the Board, including where
such interest arises through close family members, make a declaration to that effect and excuse themselves from
deliberation and final decision. Additionally, Directors are obliged as employees to abide by the Company’s Code of Ethics
and must complete the Annual Code of Ethics Questionnaire.
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COMMITTEES OF THE BOARD
Audit Committee
JPS has an established Audit Committee, the primary responsibilities of which are to assist the Board of Directors in
carrying out its duties as they relate to the organization’s accounting policies, internal controls and financial reporting
practices. In general, the Committee exercises its responsibility in three important areas:
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Financial Reporting
Governance of Internal Controls and Accounting Policies
Assessment of Management Risks in the Company
Members of the Audit Committee are:
 Mrs. Cathrine Kennedy – Chairman
 Mr. Fitzroy Vidal
 Mr. Sang Kie Cho
Other invitees to the Committee’s meeting include:
 Mr. Hisatsugu Hirai – JPS Board Chairman
 Ms. Katherine P.C. Francis – JPS General Counsel, Corporate Secretary & Compliance Officer
 Mrs. Leisa Batiste-White – Head-Internal Audit
Finance Committee
The Board has a long established Finance Committee the primary responsibility of which is to assist the Board of Directors
in financial decisions for the Company. Typically, the financial statements, audited and un-audited, are reviewed by the
Finance Committee as well as any fiscal policies or financing arrangements with attendant recommendations being made to
the Board.
Members of the Finance Committee are:
 Mr. Hisatsugu Hirai – Chairman
 Prof. Evan Duggan
 Mr. Sang Kie Cho
Other invitees to the Committee’s meeting include:
 Mrs. Kelly Tomblin – President & CEO
 Ms. Katherine P.C. Francis – JPS General Counsel & Corporate Secretary
 Mr. Dan Theoc – Chief Financial Officer
CORPORATE COMPLIANCE- JPS CODE OF ETHICS & BUSINESS CONDUCT
The Company has in place a Code of Ethics and Business Conduct, which guides employees in the right way to do
business. It is a core component of the Company’s Compliance Programme, which ensures that employees work in
accordance with principles of good corporate governance. In addition, the Company provides employees with a Code of
Ethics & Business Conduct Questionnaire, which is signed, by employees on a yearly basis and there is also a Declaration
of Interest Form.
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Management
As regards the management of the Company the selection for the chief executive officer is dictated by the Shareholders’
Agreement between the prime shareholders who conduct his performance review and who are responsible for determining
the selection of the chief executive officer. Members of the management team are selected by the shareholders in
conjunction with the Board and persons with a high standard of expertise and experience in the relevant area are sought
and selected.
Internal Controls
The Directors acknowledge their overall responsibility for the Company’s systems of internal control and for reviewing
their effectiveness. Such systems are designed to control, rather than eliminate, the risk of failure to achieve business
objectives and can provide reasonable, but not absolute assurance against material misstatement or loss.
The Board, through its Committees has reviewed the effectiveness of the Company’s Systems of Internal Control. In
addition, the reports of the internal and external auditors, which contain details of any material control issues identified
arising from their work, are reviewed by the Audit Committee. After each meeting of the Audit Committee, its Chairman
reports to the Board on all significant issues considered by the Committee so that corrective actions can be implemented..
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