fiscal 1992 -- three percent less than for the previous year.

Operating income declined by 2.3 percent ($2.27 million) for the 12 months to December 31, 1992.

Expenses also dropped but only by less than one percent ($636,762) to $80.75 million.

Income from electricity sales fell by 2.5 percent ($2.4 million) to $93.7 million, which the company put down to a decrease in the fuel adjustment, resulting from lower fuel prices following the Gulf War.

"In fact, the company's sales of electric energy actually inched up by 1.5 percent,'' according to the company's annual report.

Fifty-two percent of its income came from commercial sales, 38 percent from residential sales, eight percent from street lighting/public authorities and two percent from other sources.

Belco reduced its most costly expense -- the generation of electricity -- by 3.8 percent ($1.9 million).

But there was an 8.3 percent ($917,478) increase in administration and general expenses and a 4.5 percent ($636,762) rise in taxes and rent.

Thirty-seven percent of Belco's expenses went on fuel and lubricants, 28 percent on operating costs, 12 percent on depreciation, seven percent on reinvestment in the business, six percent on maintenance, five percent on interest and taxes and five percent on cash dividends.

Belco management were surprised by an unexpected four percent increase in Kilowatt-hour sales to residential properties and also a 0.4 percent increase in commercial sales, which were both expected to lag due to the recession.

The cutting-back US Navy, which accounted for 5.4 percent of KWH sales used 2.7 percent less electricity than in 1991. Belco made a $52,449 foreign currency exchange loss but received $56,609 in capitalised interest.

Its assets went up by 2.5 percent ($4.149 million) for the 12 month period.

Basic earnings per share came to $2.62, compared with $2.91 the previous year.

During the year, Belco paid out $4.3 million in dividends to shareholders, up by 12.6 percent ($482,431).

At the end of the year, its retained earnings were up by 11.4 percent ($6.8 million) to $66.76 million.

Despite the drop in profit, Belco chairman Mr. Neville Conyers said the company's performance was "better than anticipated''.

"This was due in part to a reduced capital expenditure programme, which enabled the company to repay an additional $6.3 million off a high interest rate loan which still had nine years to run,'' he said. "This extra payment will save $3 million in interest payments over the next four years.'' Mr. Conyers said the company will this year review whether to increase electricity rates, which Belco has held off for over a year.

1992 FINANCIAL RESULTS PROFIT $11.1 M INCOME $95.2 M EXPENSES $80.7 M OPERATING PROFIT $14.5 M BASIC EARNINGS PER SHARE $2.62 RETAINED EARNINGS $66.8 M .